Personal Budget

At the beginning of the school year, Priscilla Wescott 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)	$6,460
Purchase season football tickets in September	90
Additional entertainment for each month	220
Pay fall semester tuition in September	3,500
Pay rent at the beginning of each month	310
Pay for food each month	180
Pay apartment deposit on September 2 (to be returned December 15)	400
Part-time job earnings each month (net of taxes)	800

Question Content Area

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

Priscilla Wescott Cash Budget For the Four Months Ending December 31

	September	October	November	December
Estimated cash receipts from:
Additional entertainmentFoodPart-time jobRentTuition	$- Select -	$- Select -	$- Select -	$- Select -
Additional entertainmentDepositFoodRentTuition				- Select -
Total cash receipts	$fill in the blank a57146f53064013_8	$fill in the blank a57146f53064013_9	$fill in the blank a57146f53064013_10	$fill in the blank a57146f53064013_11
Less estimated cash payments for:
CashInsuranceMovie ticketsPart-time jobSeason football tickets	$- Select -
Additional entertainmentCashInsuranceMovie ticketsPart-time job	- Select -	$- Select -	$- Select -	$- Select -
CashInsuranceMovie ticketsPart-time jobTuition	- Select -
CashInsuranceMovie ticketsPart-time jobRent	- Select -	- Select -	- Select -	- Select -
CashFoodInsuranceMovie ticketsPart-time job	- Select -	- Select -	- Select -	- Select -
DepositInsuranceMovie ticketsPart-time jobPrepaid rent	- Select -
Total cash payments	$fill in the blank a57146f53064013_33	$fill in the blank a57146f53064013_34	$fill in the blank a57146f53064013_35	$fill in the blank a57146f53064013_36
Cash increase (decrease)	$fill in the blank a57146f53064013_37	$fill in the blank a57146f53064013_38	$fill in the blank a57146f53064013_39	$fill in the blank a57146f53064013_40
(Less cash balance at beginning of month/Plus cash balance at beginning of month)	- Select -	- Select -	- Select -	- Select -
Cash balance at end of month	$fill in the blank a57146f53064013_46	$fill in the blank a57146f53064013_47	$fill in the blank a57146f53064013_48	$fill in the blank a57146f53064013_49

Question Content Area

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? (Static/Flexible)

c. What are the budget implications for Priscilla Wescott?

Priscilla can see that her present plan (will provide/will not provide) sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $_____ (over/short)

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