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)	$8,820
Purchase season football tickets in September	120
Additional entertainment for each month	310
Pay fall semester tuition in September	4,800
Pay rent at the beginning of each month	430
Pay for food each month	240
Pay apartment deposit on September 2 (to be returned December 15)	600
Part-time job earnings each month (net of taxes)	1,090

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 4c871dfdb03cf90_1	$fill in the blank 4c871dfdb03cf90_2	$fill in the blank 4c871dfdb03cf90_3	$fill in the blank 4c871dfdb03cf90_4
Deposit				fill in the blank 4c871dfdb03cf90_5
Total cash receipts	$fill in the blank 4c871dfdb03cf90_6	$fill in the blank 4c871dfdb03cf90_7	$fill in the blank 4c871dfdb03cf90_8	$fill in the blank 4c871dfdb03cf90_9
Estimated cash payments for:
Season football tickets	$fill in the blank 4c871dfdb03cf90_10
Additional entertainment	fill in the blank 4c871dfdb03cf90_11	$fill in the blank 4c871dfdb03cf90_12	$fill in the blank 4c871dfdb03cf90_13	$fill in the blank 4c871dfdb03cf90_14
Tuition	fill in the blank 4c871dfdb03cf90_15
Rent	fill in the blank 4c871dfdb03cf90_16	fill in the blank 4c871dfdb03cf90_17	fill in the blank 4c871dfdb03cf90_18	fill in the blank 4c871dfdb03cf90_19
Food	fill in the blank 4c871dfdb03cf90_20	fill in the blank 4c871dfdb03cf90_21	fill in the blank 4c871dfdb03cf90_22	fill in the blank 4c871dfdb03cf90_23
Deposit	fill in the blank 4c871dfdb03cf90_24
Total cash payments	$fill in the blank 4c871dfdb03cf90_25	$fill in the blank 4c871dfdb03cf90_26	$fill in the blank 4c871dfdb03cf90_27	$fill in the blank 4c871dfdb03cf90_28
Overall cash increase (decrease)	$fill in the blank 4c871dfdb03cf90_29	$fill in the blank 4c871dfdb03cf90_30	$fill in the blank 4c871dfdb03cf90_31	$fill in the blank 4c871dfdb03cf90_32
Cash balance at beginning of month	fill in the blank 4c871dfdb03cf90_33	fill in the blank 4c871dfdb03cf90_34	fill in the blank 4c871dfdb03cf90_35	fill in the blank 4c871dfdb03cf90_36
Cash balance at end of month	$fill in the blank 4c871dfdb03cf90_37	$fill in the blank 4c871dfdb03cf90_38	$fill in the blank 4c871dfdb03cf90_39	$fill in the blank 4c871dfdb03cf90_40

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

Static/Flexible

c. Malloy can see that her present plan

will provide/will not provide

sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be

over/short

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