Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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) $7,650 Purchase season football tickets in September 100 Additional entertainment for each month 270 Pay fall semester tuition in September 4,100 Pay rent at the beginning of each month Pay for food each month 210 370 500 Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) 950 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 Part-time job $ 950 $ 950 $ Deposit $ 950 950 950 $ Total cash receipts Less estimated cash payments for Less estimated cash payments for Season football tickets Additional entertainment 270 $ 270 $ 250 $ 230 V Tuition Rent & Food 370 210 370 210 370 210 370 210 Deposit Total cash payments Cash increase (decrease) Plus cash balance at beginning of month 4.600 100 100 $ 600 Cash balance at end of month b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? Static C. What are the budget implications for Priscilla Wescott? Priscilla can see that her present plan will not provide sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be short at the end of December, with no time left to adjust

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics In Minutes 200 Key Concepts Explained In An Instant

Authors: Niall Kishtainy

1st Edition

1782066470, 9781782066477

More Books

Students also viewed these Accounting questions

Question

Discuss essential concepts of family therapy.

Answered: 1 week ago