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Personal Budget At the beginning of the school year, Priscilla Wescott dedided 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) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) $8,090 110 280 4,400 390 220 1,000 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 Priscilla Wescott Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from Total cash receipts Less estimated cash payments for Total cash payments Cash increase (decrease) Cash balance at e month b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? c. Priscilla can see that her present plan sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be at the end of December, with no time left to adjust

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