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 mu 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 $6,210 80 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) Part-time job earnings each month (net of taxes) KATHERINE MALLOY Cash Budget For the Four Months Ending December 31 Estimated cash receipts from: Part-time job Deposit Total cash receipts Estimated cash payments for: Season football tickets 220 3,400 300 170 400 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. 770 September October November December E
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 mu 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 $6,210 80 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) Part-time job earnings each month (net of taxes) KATHERINE MALLOY Cash Budget For the Four Months Ending December 31 Estimated cash receipts from: Part-time job Deposit Total cash receipts Estimated cash payments for: Season football tickets 220 3,400 300 170 400 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. 770 September October November December E
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text: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:
$6,210
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)
Part-time job earnings each month (net of taxes)
KATHERINE MALLOY
Cash Budget
For the Four Months Ending December 31
Estimated cash receipts from:
Part-time job
Deposit
Total cash receipts
Estimated cash payments for:
Season football tickets
Check My Work
80
220
3,400
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.
300
170
400
770
September October November December
Next
Transcribed Image Text:For the Four Months Ending December 31
September
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
October November December
000 00 0
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. Maloy can see that her present plan will provide sufficient cash, If Malloy did not budget but went ahead with the original plan, she would be s
at the end of December, with no time left to adjust.
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