P

Personal Budget

At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

Cash balance, September 1 (from a summer job)	$7,140
Purchase season football tickets in September	100
Additional entertainment for each month	250
Pay fall semester tuition in September	3,900
Pay rent at the beginning of each month	350
Pay for food each month	200
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	890

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

KATHERINE MALLOY
Cash Budget
For the Four Months Ending December 31
	September	October	November	December
Estimated cash receipts from:
Part-time job	$fill in the blank 17e019f5604afdc_1	$fill in the blank 17e019f5604afdc_2	$fill in the blank 17e019f5604afdc_3	$fill in the blank 17e019f5604afdc_4
Deposit				fill in the blank 17e019f5604afdc_5
Total cash receipts	$fill in the blank 17e019f5604afdc_6	$fill in the blank 17e019f5604afdc_7	$fill in the blank 17e019f5604afdc_8	$fill in the blank 17e019f5604afdc_9
Estimated cash payments for:
Season football tickets	$fill in the blank 17e019f5604afdc_10
Additional entertainment	fill in the blank 17e019f5604afdc_11	$fill in the blank 17e019f5604afdc_12	$fill in the blank 17e019f5604afdc_13	$fill in the blank 17e019f5604afdc_14
Tuition	fill in the blank 17e019f5604afdc_15
Rent	fill in the blank 17e019f5604afdc_16	fill in the blank 17e019f5604afdc_17	fill in the blank 17e019f5604afdc_18	fill in the blank 17e019f5604afdc_19
Food	fill in the blank 17e019f5604afdc_20	fill in the blank 17e019f5604afdc_21	fill in the blank 17e019f5604afdc_22	fill in the blank 17e019f5604afdc_23
Deposit	fill in the blank 17e019f5604afdc_24
Total cash payments	$fill in the blank 17e019f5604afdc_25	$fill in the blank 17e019f5604afdc_26	$fill in the blank 17e019f5604afdc_27	$fill in the blank 17e019f5604afdc_28
Overall cash increase (decrease)	$fill in the blank 17e019f5604afdc_29	$fill in the blank 17e019f5604afdc_30	$fill in the blank 17e019f5604afdc_31	$fill in the blank 17e019f5604afdc_32
Cash balance at beginning of month	fill in the blank 17e019f5604afdc_33	fill in the blank 17e019f5604afdc_34	fill in the blank 17e019f5604afdc_35	fill in the blank 17e019f5604afdc_36
Cash balance at end of month	$fill in the blank 17e019f5604afdc_37	$fill in the blank 17e019f5604afdc_38	$fill in the blank 17e019f5604afdc_39	$fill in the blank 17e019f5604afdc_40

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. Malloy can see that her present plan sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank e8cd5d08a02cf80_3 at the end of December, with no time left to adjust.