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At the beginning of the school year, Katherine Malloy decided to make ready a cash budget for the months of September, October, November, and December

Accounting

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At the beginning of the school year, Katherine Malloy decided to make ready 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) $8,760

Purchase season football tickets in September 120

Additional entertainment for each month 310

Pay fall semester tuition in September 4,700

Pay rent at the beginning of each month 430

Pay for food each month 240

Pay apartment deposit on September 2 (to be returned December 15) 600

Part-time job earnings each month (net of taxes) 1,090

 

a. make ready 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 $? $? $? $?

Deposit - - - $?

Total cash receipts $? $? $? $?

 

Estimated cash payments for:

Season football tickets $? - - -

Addition entertainment $? $? $? $?

Tuition $? - - -

Rent $? $? $? $?

Food $? $? $? $?

Deposit $? - - -

Total cash payments $? $? $? $?

Overall cash $? $? $? $?

increase

(decrease)

Cash balance $? $? $? $?

at the beginning of month

 

Cash balance $? $? $? $?

at the end of the month

 

C. Malloy can see that her present plan will not provide  sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $? short at the end of December, with no time left to adjust.