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) $7,050

Purchase season football tickets in September 100 A

dditional entertainment for each month 240

Pay fall semester tuition in September 3,800

Pay rent at the beginning of each month 340

Pay for food each month 190

Pay apartment deposit on September 2 (to be returned December 15) 500

Part-time job earnings each month (net of taxes) 870

a. do 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

	Sept.	oct.	nov.	dec.
Estimated cash receipts from:
Part-time job	?	?	?	?
Deposit	?	?	?	?
Total cash receipts	?	?	?	?
Estimated cash payments for:
Season football tickets	?	?	?	?
Additional entertainment	?	?	?	?
Tuition	?	?	?	?
Rent	?	?	?	?
Food	?	?	?	?
Deposit	?	?	?	?
Total cash payments	?	?	?	?
Overall cash increase (decrease)	?	?	?	?
Cash balance at beginning of month	?	?	?	?
Cash balance at end of month	?	?	?	?

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

StaticFlexibleStatic

c. Malloy can see that her present plan

will providewill not providewill not provide

sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank over/short

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