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)	$6,570
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 ef5fc3fb2033ffa_1	$fill in the blank ef5fc3fb2033ffa_2	$fill in the blank ef5fc3fb2033ffa_3	$fill in the blank ef5fc3fb2033ffa_4
Deposit				fill in the blank ef5fc3fb2033ffa_5
Total cash receipts	$fill in the blank ef5fc3fb2033ffa_6	$fill in the blank ef5fc3fb2033ffa_7	$fill in the blank ef5fc3fb2033ffa_8	$fill in the blank ef5fc3fb2033ffa_9
Estimated cash payments for:
Season football tickets	$fill in the blank ef5fc3fb2033ffa_10
Additional entertainment	fill in the blank ef5fc3fb2033ffa_11	$fill in the blank ef5fc3fb2033ffa_12	$fill in the blank ef5fc3fb2033ffa_13	$fill in the blank ef5fc3fb2033ffa_14
Tuition	fill in the blank ef5fc3fb2033ffa_15
Rent	fill in the blank ef5fc3fb2033ffa_16	fill in the blank ef5fc3fb2033ffa_17	fill in the blank ef5fc3fb2033ffa_18	fill in the blank ef5fc3fb2033ffa_19
Food	fill in the blank ef5fc3fb2033ffa_20	fill in the blank ef5fc3fb2033ffa_21	fill in the blank ef5fc3fb2033ffa_22	fill in the blank ef5fc3fb2033ffa_23
Deposit	fill in the blank ef5fc3fb2033ffa_24
Total cash payments	$fill in the blank ef5fc3fb2033ffa_25	$fill in the blank ef5fc3fb2033ffa_26	$fill in the blank ef5fc3fb2033ffa_27	$fill in the blank ef5fc3fb2033ffa_28
Overall cash increase (decrease)	$fill in the blank ef5fc3fb2033ffa_29	$fill in the blank ef5fc3fb2033ffa_30	$fill in the blank ef5fc3fb2033ffa_31	$fill in the blank ef5fc3fb2033ffa_32
Cash balance at beginning of month	fill in the blank ef5fc3fb2033ffa_33	fill in the blank ef5fc3fb2033ffa_34	fill in the blank ef5fc3fb2033ffa_35	fill in the blank ef5fc3fb2033ffa_36
Cash balance at end of month	$fill in the blank ef5fc3fb2033ffa_37	$fill in the blank ef5fc3fb2033ffa_38	$fill in the blank ef5fc3fb2033ffa_39	$fill in the blank ef5fc3fb2033ffa_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 3eb592027fbefb3_3

overshort

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