Personal Budget At the beginning of the school year, KatherineMalloy decided to prepare a cash budget for the months ofSeptember, October, November, and December. The budget must planfor enough cash on December 31 to pay the spring semester tuition,which is the same as the fall tuition. The following informationrelates to the budget: Cash balance, September 1 (from a summerjob) $7,990 Purchase season football tickets in September 110Additional entertainment for each month 280 Pay fall semestertuition in September 4,300 Pay rent at the beginning of each month390 Pay for food each month 220 Pay apartment deposit on September2 (to be returned December 15) 600 Part-time job earnings eachmonth (net of taxes) 990 a. Prepare a cash budget for September,October, November, and December. Enter all amounts as positivevalues except an overall cash decrease which should be indicatedwith 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 | $ | $ | $ | $ |
| Estimated cash payments for: | | | | |
| Season football tickets | $ | | | |
| Additional entertainment | | $ | $ | $ |
| Tuition | | | | |
| Rent | | | | |
| Food | | | | |
| Deposit | | | | |
| Total cash payments | $ | $ | $ | $ |
| Overall cash increase (decrease) | $ | $ | $ | $ |
| Cash balance at beginning of month | | | | |
| Cash balance at end of month | $ | $ | $ | $ |
b. Are the four monthly budgets that arepresented prepared as static budgets or flexible budgets?
c. Malloy can see that her present plan------------ sufficient cash. If Malloy did not budget but wentahead with the original plan, she would be $---------- -----------at the end of December, with no time left to adjust.
