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)	$7,740
Purchase season football tickets in September	110
Additional entertainment for each month	270
Pay fall semester tuition in September	4,200
Pay rent at the beginning of each month	370
Pay for food each month	210
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	960

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	$fill in the blank	$fill in the blank	$fill in the blank
Deposit				fill in the blank
Total cash receipts	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Estimated cash payments for:
Season football tickets	$fill in the blank
Additional entertainment	fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Tuition	fill in the blank
Rent	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Food	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Deposit	fill in the blank
Total cash payments	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Overall cash increase (decrease)	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Cash balance at beginning of month	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Cash balance at end of month	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank

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