PersonalBudget

At the beginning of the 2014 school year, Jen Lassiter decided to prepare acash budgetfor 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:

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Hint(s)

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.

Jen Lassiter
Cash Budget
For the Four Months Ending December 31, 2014
September	October	November	December
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	$	$	$	$
Cash increase (decrease)	$	$	$	$
Cash balance at beginning of month
Cash balance at end of month	$	$	$	$

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Sometimes an item may be a decrease in one period and an increase in a different period.

Review the definitions of static budgets and flexible budgets.

What weaknesses are shown by this cash budget?

Learning Objective 5.

b. Are the four monthly budgets that are presented prepared asstatic budgetsorflexible budgets? SelectStaticFlexibleCorrect 1 of Item 2

c. Lassiter can see that her present planSelectwill providewill not provideCorrect 2 of Item 2sufficient cash. If Lassiter did not budget but went ahead with the original plan, she would be $SelectovershortCorrect 4 of Item 2at the end of December, with no time left to adjust.

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