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)	$6,740
Purchase season football tickets in September	90
Additional entertainment for each month	240
Pay fall semester tuition in September	3,600
Pay rent at the beginning of each month	330
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)	840

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 9fed54f83047f8f_1	$fill in the blank 9fed54f83047f8f_2	$fill in the blank 9fed54f83047f8f_3	$fill in the blank 9fed54f83047f8f_4
Deposit				fill in the blank 9fed54f83047f8f_5
Total cash receipts	$fill in the blank 9fed54f83047f8f_6	$fill in the blank 9fed54f83047f8f_7	$fill in the blank 9fed54f83047f8f_8	$fill in the blank 9fed54f83047f8f_9
Estimated cash payments for:
Season football tickets	$fill in the blank 9fed54f83047f8f_10
Additional entertainment	fill in the blank 9fed54f83047f8f_11	$fill in the blank 9fed54f83047f8f_12	$fill in the blank 9fed54f83047f8f_13	$fill in the blank 9fed54f83047f8f_14
Tuition	fill in the blank 9fed54f83047f8f_15
Rent	fill in the blank 9fed54f83047f8f_16	fill in the blank 9fed54f83047f8f_17	fill in the blank 9fed54f83047f8f_18	fill in the blank 9fed54f83047f8f_19
Food	fill in the blank 9fed54f83047f8f_20	fill in the blank 9fed54f83047f8f_21	fill in the blank 9fed54f83047f8f_22	fill in the blank 9fed54f83047f8f_23
Deposit	fill in the blank 9fed54f83047f8f_24
Total cash payments	$fill in the blank 9fed54f83047f8f_25	$fill in the blank 9fed54f83047f8f_26	$fill in the blank 9fed54f83047f8f_27	$fill in the blank 9fed54f83047f8f_28
Overall cash increase (decrease)	$fill in the blank 9fed54f83047f8f_29	$fill in the blank 9fed54f83047f8f_30	$fill in the blank 9fed54f83047f8f_31	$fill in the blank 9fed54f83047f8f_32
Cash balance at beginning of month	fill in the blank 9fed54f83047f8f_33	fill in the blank 9fed54f83047f8f_34	fill in the blank 9fed54f83047f8f_35	fill in the blank 9fed54f83047f8f_36
Cash balance at end of month	$fill in the blank 9fed54f83047f8f_37	$fill in the blank 9fed54f83047f8f_38	$fill in the blank 9fed54f83047f8f_39	$fill in the blank 9fed54f83047f8f_40

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 e1799ef77fa0fa3_3

overshort

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