Preparation of cash budget Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2016 to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their take-home pay (that is, monthly utilities nor- mally run 5% of monthly take-home pay). The information in the following table can be used to create their fourth-quarter budget for 2016. Income Monthly take-home pay Expenses Housing Utilities $4,900 30% 5% Food 10% Transportation 7% Medical/dental .5% Clothing for October and November Clothing for December Property taxes (November only) Appliances 3% $440 11.5% 1% Personal care 2% Entertainment for October and November 6% Entertainment for December $1,500 Savings Other 7.5% 5% Excess cash 4.5% a. Prepare a quarterly cash budget for Sam and Suzy covering the months October through December 2016. b. Are there individual months that incur a deficit? c. What is the cumulative cash surplus or deficit by the end of December 2016?