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)	$7,060
Purchase season football tickets in September	100
Additional entertainment for each month	250
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)	880

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 636e6c01905d033_1	$fill in the blank 636e6c01905d033_2	$fill in the blank 636e6c01905d033_3	$fill in the blank 636e6c01905d033_4
Deposit				fill in the blank 636e6c01905d033_5
Total cash receipts	$fill in the blank 636e6c01905d033_6	$fill in the blank 636e6c01905d033_7	$fill in the blank 636e6c01905d033_8	$fill in the blank 636e6c01905d033_9
Estimated cash payments for:
Season football tickets	$fill in the blank 636e6c01905d033_10
Additional entertainment	fill in the blank 636e6c01905d033_11	$fill in the blank 636e6c01905d033_12	$fill in the blank 636e6c01905d033_13	$fill in the blank 636e6c01905d033_14
Tuition	fill in the blank 636e6c01905d033_15
Rent	fill in the blank 636e6c01905d033_16	fill in the blank 636e6c01905d033_17	fill in the blank 636e6c01905d033_18	fill in the blank 636e6c01905d033_19
Food	fill in the blank 636e6c01905d033_20	fill in the blank 636e6c01905d033_21	fill in the blank 636e6c01905d033_22	fill in the blank 636e6c01905d033_23
Deposit	fill in the blank 636e6c01905d033_24
Total cash payments	$fill in the blank 636e6c01905d033_25	$fill in the blank 636e6c01905d033_26	$fill in the blank 636e6c01905d033_27	$fill in the blank 636e6c01905d033_28
Overall cash increase (decrease)	$fill in the blank 636e6c01905d033_29	$fill in the blank 636e6c01905d033_30	$fill in the blank 636e6c01905d033_31	$fill in the blank 636e6c01905d033_32
Cash balance at beginning of month	fill in the blank 636e6c01905d033_33	fill in the blank 636e6c01905d033_34	fill in the blank 636e6c01905d033_35	fill in the blank 636e6c01905d033_36
Cash balance at end of month	$fill in the blank 636e6c01905d033_37	$fill in the blank 636e6c01905d033_38	$fill in the blank 636e6c01905d033_39	$fill in the blank 636e6c01905d033_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 c652dcf85043fad_3 at the end of December, with no time left to adjust.