1. 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)	$8,730
   Purchase season football tickets in September	120
   Additional entertainment for each month	300
   Pay fall semester tuition in September	4,700
   Pay rent at the beginning of each month	420
   Pay for food each month	240
   Pay apartment deposit on September 2 (to be returned December 15)	600
   Part-time job earnings each month (net of taxes)	1,080

   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:
   	$	$	$	$
   Total cash receipts	$	$	$	$
   Less estimated cash payments for:
   	$
   		$	$	$
   Total cash payments	$	$	$	$
   Cash increase (decrease)	$	$	$	$
   Cash balance at end of month	$	$	$	$

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

   c. What are the budget implications for Priscilla Wescott?

   Priscilla can see that her present plan sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ at the end of December, with no time left to adjust.