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

Question Content Area

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 ad70ecfba030fe5_1	$fill in the blank ad70ecfba030fe5_2	$fill in the blank ad70ecfba030fe5_3	$fill in the blank ad70ecfba030fe5_4
Deposit				fill in the blank ad70ecfba030fe5_5
Total cash receipts	$fill in the blank ad70ecfba030fe5_6	$fill in the blank ad70ecfba030fe5_7	$fill in the blank ad70ecfba030fe5_8	$fill in the blank ad70ecfba030fe5_9
Estimated cash payments for:
Season football tickets	$fill in the blank ad70ecfba030fe5_10
Additional entertainment	fill in the blank ad70ecfba030fe5_11	$fill in the blank ad70ecfba030fe5_12	$fill in the blank ad70ecfba030fe5_13	$fill in the blank ad70ecfba030fe5_14
Tuition	fill in the blank ad70ecfba030fe5_15
Rent	fill in the blank ad70ecfba030fe5_16	fill in the blank ad70ecfba030fe5_17	fill in the blank ad70ecfba030fe5_18	fill in the blank ad70ecfba030fe5_19
Food	fill in the blank ad70ecfba030fe5_20	fill in the blank ad70ecfba030fe5_21	fill in the blank ad70ecfba030fe5_22	fill in the blank ad70ecfba030fe5_23
Deposit	fill in the blank ad70ecfba030fe5_24
Total cash payments	$fill in the blank ad70ecfba030fe5_25	$fill in the blank ad70ecfba030fe5_26	$fill in the blank ad70ecfba030fe5_27	$fill in the blank ad70ecfba030fe5_28
Overall cash increase (decrease)	$fill in the blank ad70ecfba030fe5_29	$fill in the blank ad70ecfba030fe5_30	$fill in the blank ad70ecfba030fe5_31	$fill in the blank ad70ecfba030fe5_32
Cash balance at beginning of month	fill in the blank ad70ecfba030fe5_33	fill in the blank ad70ecfba030fe5_34	fill in the blank ad70ecfba030fe5_35	fill in the blank ad70ecfba030fe5_36
Cash balance at end of month	$fill in the blank ad70ecfba030fe5_37	$fill in the blank ad70ecfba030fe5_38	$fill in the blank ad70ecfba030fe5_39	$fill in the blank ad70ecfba030fe5_40

Question Content Area

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 758219ff9059fb4_3

overshort

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