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)	$8,540
Purchase season football tickets in September	120
Additional entertainment for each month	300
Pay fall semester tuition in September	4,600
Pay rent at the beginning of each month	410
Pay for food each month	230
Pay apartment deposit on September 2 (to be returned December 15)	600
Part-time job earnings each month (net of taxes)	1,060

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 ebbc3dfa900ffc0_1	$fill in the blank ebbc3dfa900ffc0_2	$fill in the blank ebbc3dfa900ffc0_3	$fill in the blank ebbc3dfa900ffc0_4
Deposit				fill in the blank ebbc3dfa900ffc0_5
Total cash receipts	$fill in the blank ebbc3dfa900ffc0_6	$fill in the blank ebbc3dfa900ffc0_7	$fill in the blank ebbc3dfa900ffc0_8	$fill in the blank ebbc3dfa900ffc0_9
Estimated cash payments for:
Season football tickets	$fill in the blank ebbc3dfa900ffc0_10
Additional entertainment	fill in the blank ebbc3dfa900ffc0_11	$fill in the blank ebbc3dfa900ffc0_12	$fill in the blank ebbc3dfa900ffc0_13	$fill in the blank ebbc3dfa900ffc0_14
Tuition	fill in the blank ebbc3dfa900ffc0_15
Rent	fill in the blank ebbc3dfa900ffc0_16	fill in the blank ebbc3dfa900ffc0_17	fill in the blank ebbc3dfa900ffc0_18	fill in the blank ebbc3dfa900ffc0_19
Food	fill in the blank ebbc3dfa900ffc0_20	fill in the blank ebbc3dfa900ffc0_21	fill in the blank ebbc3dfa900ffc0_22	fill in the blank ebbc3dfa900ffc0_23
Deposit	fill in the blank ebbc3dfa900ffc0_24
Total cash payments	$fill in the blank ebbc3dfa900ffc0_25	$fill in the blank ebbc3dfa900ffc0_26	$fill in the blank ebbc3dfa900ffc0_27	$fill in the blank ebbc3dfa900ffc0_28
Overall cash increase (decrease)	$fill in the blank ebbc3dfa900ffc0_29	$fill in the blank ebbc3dfa900ffc0_30	$fill in the blank ebbc3dfa900ffc0_31	$fill in the blank ebbc3dfa900ffc0_32
Cash balance at beginning of month	fill in the blank ebbc3dfa900ffc0_33	fill in the blank ebbc3dfa900ffc0_34	fill in the blank ebbc3dfa900ffc0_35	fill in the blank ebbc3dfa900ffc0_36
Cash balance at end of month	$fill in the blank ebbc3dfa900ffc0_37	$fill in the blank ebbc3dfa900ffc0_38	$fill in the blank ebbc3dfa900ffc0_39	$fill in the blank ebbc3dfa900ffc0_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 db1e2bf9bfbf036_3 at the end of December, with no time left to adjust.