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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)	$7,950
Purchase season football tickets in September	110
Additional entertainment for each month	280
Pay fall semester tuition in September	4,300
Pay rent at the beginning of each month	390
Pay for food each month	220
Pay apartment deposit on September 2 (to be returned December 15)	600
Part-time job earnings each month (net of taxes)	990

Question Content Area

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	$fill in the blank f76e82f92ff203c_1	$fill in the blank f76e82f92ff203c_2	$fill in the blank f76e82f92ff203c_3	$fill in the blank f76e82f92ff203c_4
Deposit				fill in the blank f76e82f92ff203c_5
Total cash receipts	$fill in the blank f76e82f92ff203c_6	$fill in the blank f76e82f92ff203c_7	$fill in the blank f76e82f92ff203c_8	$fill in the blank f76e82f92ff203c_9
Estimated cash payments for:
Season football tickets	$fill in the blank f76e82f92ff203c_10
Additional entertainment	fill in the blank f76e82f92ff203c_11	$fill in the blank f76e82f92ff203c_12	$fill in the blank f76e82f92ff203c_13	$fill in the blank f76e82f92ff203c_14
Tuition	fill in the blank f76e82f92ff203c_15
Rent	fill in the blank f76e82f92ff203c_16	fill in the blank f76e82f92ff203c_17	fill in the blank f76e82f92ff203c_18	fill in the blank f76e82f92ff203c_19
Food	fill in the blank f76e82f92ff203c_20	fill in the blank f76e82f92ff203c_21	fill in the blank f76e82f92ff203c_22	fill in the blank f76e82f92ff203c_23
Deposit	fill in the blank f76e82f92ff203c_24
Total cash payments	$fill in the blank f76e82f92ff203c_25	$fill in the blank f76e82f92ff203c_26	$fill in the blank f76e82f92ff203c_27	$fill in the blank f76e82f92ff203c_28
Overall cash increase (decrease)	$fill in the blank f76e82f92ff203c_29	$fill in the blank f76e82f92ff203c_30	$fill in the blank f76e82f92ff203c_31	$fill in the blank f76e82f92ff203c_32
Cash balance at beginning of month	fill in the blank f76e82f92ff203c_33	fill in the blank f76e82f92ff203c_34	fill in the blank f76e82f92ff203c_35	fill in the blank f76e82f92ff203c_36
Cash balance at end of month	$fill in the blank f76e82f92ff203c_37	$fill in the blank f76e82f92ff203c_38	$fill in the blank f76e82f92ff203c_39	$fill in the blank f76e82f92ff203c_40

Question Content Area

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

StaticFlexible

c. Malloy can see that her present plan

will provide/will not provide

sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank 0d66b209400e06f_3

overshort

at the end of December, with no time left to adjust.

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