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)	$7,890
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

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 47803703a023ff1_1	$fill in the blank 47803703a023ff1_2	$fill in the blank 47803703a023ff1_3	$fill in the blank 47803703a023ff1_4
Deposit				fill in the blank 47803703a023ff1_5
Total cash receipts	$fill in the blank 47803703a023ff1_6	$fill in the blank 47803703a023ff1_7	$fill in the blank 47803703a023ff1_8	$fill in the blank 47803703a023ff1_9
Estimated cash payments for:
Season football tickets	$fill in the blank 47803703a023ff1_10
Additional entertainment	fill in the blank 47803703a023ff1_11	$fill in the blank 47803703a023ff1_12	$fill in the blank 47803703a023ff1_13	$fill in the blank 47803703a023ff1_14
Tuition	fill in the blank 47803703a023ff1_15
Rent	fill in the blank 47803703a023ff1_16	fill in the blank 47803703a023ff1_17	fill in the blank 47803703a023ff1_18	fill in the blank 47803703a023ff1_19
Food	fill in the blank 47803703a023ff1_20	fill in the blank 47803703a023ff1_21	fill in the blank 47803703a023ff1_22	fill in the blank 47803703a023ff1_23
Deposit	fill in the blank 47803703a023ff1_24
Total cash payments	$fill in the blank 47803703a023ff1_25	$fill in the blank 47803703a023ff1_26	$fill in the blank 47803703a023ff1_27	$fill in the blank 47803703a023ff1_28
Overall cash increase (decrease)	$fill in the blank 47803703a023ff1_29	$fill in the blank 47803703a023ff1_30	$fill in the blank 47803703a023ff1_31	$fill in the blank 47803703a023ff1_32
Cash balance at beginning of month	fill in the blank 47803703a023ff1_33	fill in the blank 47803703a023ff1_34	fill in the blank 47803703a023ff1_35	fill in the blank 47803703a023ff1_36
Cash balance at end of month	$fill in the blank 47803703a023ff1_37	$fill in the blank 47803703a023ff1_38	$fill in the blank 47803703a023ff1_39	$fill in the blank 47803703a023ff1_40

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 0b0787002f84060_3 at the end of December, with no time left to adjust.