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)	$6,530
Purchase season football tickets in September	90
Additional entertainment for each month	230
Pay fall semester tuition in September	3,500
Pay rent at the beginning of each month	320
Pay for food each month	180
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	810

Question Content Area

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 2638e7f93023fe7_1	$fill in the blank 2638e7f93023fe7_2	$fill in the blank 2638e7f93023fe7_3	$fill in the blank 2638e7f93023fe7_4
Deposit				fill in the blank 2638e7f93023fe7_5
Total cash receipts	$fill in the blank 2638e7f93023fe7_6	$fill in the blank 2638e7f93023fe7_7	$fill in the blank 2638e7f93023fe7_8	$fill in the blank 2638e7f93023fe7_9
Estimated cash payments for:
Season football tickets	$fill in the blank 2638e7f93023fe7_10
Additional entertainment	fill in the blank 2638e7f93023fe7_11	$fill in the blank 2638e7f93023fe7_12	$fill in the blank 2638e7f93023fe7_13	$fill in the blank 2638e7f93023fe7_14
Tuition	fill in the blank 2638e7f93023fe7_15
Rent	fill in the blank 2638e7f93023fe7_16	fill in the blank 2638e7f93023fe7_17	fill in the blank 2638e7f93023fe7_18	fill in the blank 2638e7f93023fe7_19
Food	fill in the blank 2638e7f93023fe7_20	fill in the blank 2638e7f93023fe7_21	fill in the blank 2638e7f93023fe7_22	fill in the blank 2638e7f93023fe7_23
Deposit	fill in the blank 2638e7f93023fe7_24
Total cash payments	$fill in the blank 2638e7f93023fe7_25	$fill in the blank 2638e7f93023fe7_26	$fill in the blank 2638e7f93023fe7_27	$fill in the blank 2638e7f93023fe7_28
Overall cash increase (decrease)	$fill in the blank 2638e7f93023fe7_29	$fill in the blank 2638e7f93023fe7_30	$fill in the blank 2638e7f93023fe7_31	$fill in the blank 2638e7f93023fe7_32
Cash balance at beginning of month	fill in the blank 2638e7f93023fe7_33	fill in the blank 2638e7f93023fe7_34	fill in the blank 2638e7f93023fe7_35	fill in the blank 2638e7f93023fe7_36
Cash balance at end of month	$fill in the blank 2638e7f93023fe7_37	$fill in the blank 2638e7f93023fe7_38	$fill in the blank 2638e7f93023fe7_39	$fill in the blank 2638e7f93023fe7_40

Question Content Area

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

StaticFlexible

c. Malloy can see that her present plan

will providewill not provide

sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank 65be18fd6f81056_3

overshort

at the end of December, with no time left to adjust.