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)	$7,050
Purchase season football tickets in September	100
Additional entertainment for each month	240
Pay fall semester tuition in September	3,800
Pay rent at the beginning of each month	340
Pay for food each month	190
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	870

Question Content Area

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.

c. Malloy can see that her present plan

will not provide sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be

$fill in the blank. short at the end of December, with no time left to adjust.