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 $6,630 90 230 3,600 320 Pay rent at the beginning of each month 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) 520 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 Estimated cash receipts from September October November December Part-time job 120 K20 820 820 Deposit 500 Total cash receipts 120 120 820 S 1320 Estimated cash payments for: Season football tickets Additional entertainment Tuition Rent Food Deposit Total cash payments Overall cash increase (decrease) Cash balance at beginning of month Cash balance at end of month 908 230 230 230 230 1,000 320 120 320 320 180 180 180 500 4920 730 750 730 4,100 $ 6,630 90 90 2.330 b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? c. Malloy can see that her present plan December, with no time left to adjust sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be t at the end of 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.