Question
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
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) | $5,750 |
Purchase season football tickets in September | 210 |
Additional entertainment for each month | 275 |
Pay fall semester tuition in September | 3,700 |
Pay rent at the beginning of each month | 600 |
Pay for food each month | 235 |
Pay apartment deposit on September 2 (to be returned December 15) | 500 |
Part-time job earnings each month (net of taxes) | 1,400 |
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.
September | October | November | December | |
Estimated cash receipts from: | ||||
Part-time job | $fill in the blank e8a14b058fda042_1 | $fill in the blank e8a14b058fda042_2 | $fill in the blank e8a14b058fda042_3 | $fill in the blank e8a14b058fda042_4 |
Deposit | fill in the blank e8a14b058fda042_5 | |||
Total cash receipts | $fill in the blank e8a14b058fda042_6 | $fill in the blank e8a14b058fda042_7 | $fill in the blank e8a14b058fda042_8 | $fill in the blank e8a14b058fda042_9 |
Estimated cash payments for: | ||||
Season football tickets | $fill in the blank e8a14b058fda042_10 | |||
Additional entertainment | fill in the blank e8a14b058fda042_11 | $fill in the blank e8a14b058fda042_12 | $fill in the blank e8a14b058fda042_13 | $fill in the blank e8a14b058fda042_14 |
Tuition | fill in the blank e8a14b058fda042_15 | |||
Rent | fill in the blank e8a14b058fda042_16 | fill in the blank e8a14b058fda042_17 | fill in the blank e8a14b058fda042_18 | fill in the blank e8a14b058fda042_19 |
Food | fill in the blank e8a14b058fda042_20 | fill in the blank e8a14b058fda042_21 | fill in the blank e8a14b058fda042_22 | fill in the blank e8a14b058fda042_23 |
Deposit | fill in the blank e8a14b058fda042_24 | |||
Total cash payments | $fill in the blank e8a14b058fda042_25 | $fill in the blank e8a14b058fda042_26 | $fill in the blank e8a14b058fda042_27 | $fill in the blank e8a14b058fda042_28 |
Overall cash increase (decrease) | $fill in the blank e8a14b058fda042_29 | $fill in the blank e8a14b058fda042_30 | $fill in the blank e8a14b058fda042_31 | $fill in the blank e8a14b058fda042_32 |
Cash balance at beginning of month | fill in the blank e8a14b058fda042_33 | fill in the blank e8a14b058fda042_34 | fill in the blank e8a14b058fda042_35 | fill in the blank e8a14b058fda042_36 |
Cash balance at end of month | $fill in the blank e8a14b058fda042_37 | $fill in the blank e8a14b058fda042_38 | $fill in the blank e8a14b058fda042_39 | $fill in the blank e8a14b058fda042_40 |
Feedback
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.
What weaknesses are shown by this cash budget?
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 b69392008f9f073_3
overshort
at the end of December, with no time left to adjust.
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