Preparation of cash budget.Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of

2020

to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to identify the percentage of their income that they pay for most of for their cash outflows. These percentages are based on their take-home pay (e.g., monthly utilities normally run

4.9%

of monthly take-home pay). The information here

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can be used to create their fourth-quarter budget for

2020.

a. Prepare a quarterly cash budget for Sam and Suzy covering the months October through December

2020.

b. Are there individual months that incur a deficit?

c. What is the cumulative cash surplus or deficit by the end of December

2020?

a. Complete the October

2020

cash budget below:(Round to the nearest dollar.)

Sam and Suzy Sizeman
Personal Budget
for the Period October-December 2020
		October
Income
Take-home pay		$	4,855
Expenses	Percent
Housing	29.8%	$	1,447
Utilities	4.9%	$	238
Food	9.6%	$	466
Transportation	6.8%	$	330
Medical/Dental	0.5%	$	24
Clothing	3.4%	$	165
Property taxes	11.2%	$	0
Appliances	1.3%	$	63
Personal care	1.9%	$	92
Entertainment	5.7%	$	277
Savings	7.8%	$	379
Other	4.9%	$	238
Excess cash	4.1%	$	199
Total expenses		$	3,918
Cash surplus or (deficit)		$	937
Cumulative cash surplus or (deficit)		$	937

Complete the November

2020

cash budget below:(Round to the nearest dollar.)

Sam and Suzy Sizeman
Personal Budget
for the Period October-December 2020
		November
Income
Take-home pay		$
Expenses	Percent
Housing	29.8%	$
Utilities	4.9%	$
Food	9.6%	$
Transportation	6.8%	$
Medical/Dental	0.5%	$
Clothing	3.4%	$
Property taxes	11.2%	$
Appliances	1.3%	$
Personal care	1.9%	$
Entertainment	5.7%	$
Savings	7.8%	$
Other	4.9%	$
Excess cash	4.1%	$
Total expenses		$
Cash surplus or (deficit)		$
Cumulative cash surplus or (deficit)		$