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$)$ $$7,930$

Purchase season football tickets in September $110$

Additional entertainment for each month $270$

Pay fall semester tuition in September $4,300$

Pay rent at the beginning of each month $380$

Pay for food each month $220$

Pay apartment deposit on September $2($to be returned December $15)500$

Part$-$time job earnings each month $($net of taxes$)980$

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 dda$9$b$9$f$79$ff$9$ffb$\_1$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_2$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_3$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_4$

Deposit fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_5$

Total cash receipts $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_6$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_7$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_8$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_9$

Estimated cash payments for:

Season football tickets $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_10$

Additional entertainment fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_11$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_12$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_13$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_14$

Tuition fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_15$

Rent fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_16$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_17$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_18$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_19$

Food fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_20$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_21$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_22$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_23$

Deposit fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_24$

Total cash payments $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_25$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_26$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_27$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_28$

Overall cash increase $($decrease$)$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_29$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_30$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_31$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_32$

Cash balance at beginning of month fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_33$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_34$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_35$ fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_36$

Cash balance at end of month $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_37$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_38$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_39$ $fill in the blank dda$9$b$9$f$79$ff$9$ffb$\_40$

Feedback Area

Feedback

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?

Question Content Area

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 $8$b$442$fffc$03$bf$83\_3$

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