Personal Budget At the beginning of the 2016 school year, Britney Logan decided
ID: 2438820 • Letter: P
Question
Personal Budget
At the beginning of the 2016 school year, Britney Logan 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:
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.
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. Brittany can see that her present plan sufficient cash. If Logan did not budget but went ahead with the original plan, she would be $ at the end of December, with no time left to adjust.
Cash balance, September 1 (from a summer job) $6,500 Purchase season football tickets in September 90 Additional entertainment for each month 230 Pay fall semester tuition in September 3,500 Pay rent at the beginning of each month 320 Pay for food each month 180 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 810Explanation / Answer
Britney Logan
Cash Budget
For the Four Months Ending December 31, 2016
September
October
November
December
Estimated cash receipts from:
Part-time job
810
810
810
810
Deposit
500
Total cash receipts
810
810
810
1310
Estimated cash payments for:
Season football tickets
90
Additional entertainment
230
230
230
230
Tuition
3500
3500
Rent
320
320
320
320
Food
180
180
180
180
Deposit
500
Total cash payments
4820
730
730
4230
Cash increase (decrease)
-4010
80
80
-2920
Cash balance at beginning of month
6500
2490
2570
2650
Cash balance at end of month
2490
2570
2650
-270
B- it is a static Budget
C-She would have shortage of 270 if she would not plan
Britney Logan
Cash Budget
For the Four Months Ending December 31, 2016
September
October
November
December
Estimated cash receipts from:
Part-time job
810
810
810
810
Deposit
500
Total cash receipts
810
810
810
1310
Estimated cash payments for:
Season football tickets
90
Additional entertainment
230
230
230
230
Tuition
3500
3500
Rent
320
320
320
320
Food
180
180
180
180
Deposit
500
Total cash payments
4820
730
730
4230
Cash increase (decrease)
-4010
80
80
-2920
Cash balance at beginning of month
6500
2490
2570
2650
Cash balance at end of month
2490
2570
2650
-270
B- it is a static Budget
C-She would have shortage of 270 if she would not plan
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