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) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September $7,540 100 260 4,100 Pay rent at the beginning of each month 360 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) 930 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 Deposit 930 930 930 $ 930 500 Total cash receipts 930 930 930 1,430 Estimated cash payments for: Season football tickets 100 Additional entertainment 260 260 260 260 Tuition 4,100 Rent 360 360 360 360 Food 200 200 200 200 Deposit Total cash payments 5,520 500 820 V 820 820 Food Deposit Total cash payments Overall cash increase (decrease) Cash balance at beginning of month Cash balance at end of month Feedback 200 200 200 200 500 5,520 820 820 820 Check My Work Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? Static c. Malloy can see that her present plan will not provide Feedback Check My Work sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $ 700 x short at the end of December, with no time left to adjust. Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget?