70.2K

Verified Solution

Link Copied!

22.1

275 600 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) $5,750 Purchase season football tickets in September 210 Additional entertainment for each month Pay fall semester tuition in September 3,700 Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be retumed December 15) Part-time job earnings each month (net of taxes) 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 Estimated cash receipts from: Part-time job 235 500 1,400 November December 11 Deposit Deposit Total cash receipts Estimated cash payments for: Season football tickets Additional entertainment Tuition JO I II II DO II I IC Rent O O O OO Food Deposit Total cash payments Cash increase (decrease) Cash balance at beginning of month Cash balance at end of month 3 b. Are the four monthly budgets that are presented prepared as static budgets or flexble budgets? c. Malloy can see that her present plan be sufficient cash. If Malloy did not budget but went ahead with the original plan, she would at the end of December, with no time left to adjust

Answer & Explanation Solved by verified expert

See Answer