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Show Me How Personal Budget At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September,
Show Me How Personal Budget At the beginning of the school year, Katherine Malloy 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) $8,250 Purchase season football tickets in September 110 Additional entertainment for each month 290 Pay fall semester tuition in September 4,500 400 220 Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) 600 1,020 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. KATHERINE MALLOY Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from: Part-time job Deposit Total cash receipts o Estimated cash receipts from: Cash sales Collection of accounts receivable Total cash receipts Estimated cash payments for: Manufacturing costs 9 Selling and administrative expenses Capital expenditures Other purposes: Income tax QUO Q000 000 v10 10 Dividends Total cash payments Cash increase or (decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance Excess (deficiency) and/or by the 2. The budget indicates that the minimum cash balance be maintained in July. This situation can be corrected by of the marketable securities, if they are held for such purposes. At the end of May and June, the cash balance will the minimum
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