At the beginning of the school year, Priscilla Wescott 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) $6,250 Purchase season football tickets in September 90 Additional entertainment for each month 220 Pay fall semester tuition in September 3,400 Pay rent at the beginning of each month 300 Pay for food each month 170 Pay apartment deposit on September 2 (to be returned December 15) 400 Part-time job earnings each month (net of taxes) 780 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except 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: Additional entertainment x Deposit v Total cash receipts Less estimated cash payments for: Cash x Additional entertainment v Insurance X Movie tickets X Part-time job x Prepaid rent x_ Total cash payments Cash increase (decrease) Less cash balance at beginning of month x Cash balance at end of month I I I 11 ()
At the beginning of the school year, Priscilla Wescott 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) $6,250 Purchase season football tickets in September 90 Additional entertainment for each month 220 Pay fall semester tuition in September 3,400 Pay rent at the beginning of each month 300 Pay for food each month 170 Pay apartment deposit on September 2 (to be returned December 15) 400 Part-time job earnings each month (net of taxes) 780 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except 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: Additional entertainment x Deposit v Total cash receipts Less estimated cash payments for: Cash x Additional entertainment v Insurance X Movie tickets X Part-time job x Prepaid rent x_ Total cash payments Cash increase (decrease) Less cash balance at beginning of month x Cash balance at end of month I I I 11 ()
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Personal Budget
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Transcribed Image Text:c. What are the budget implications for Priscilla Wescott?
Priscilla can see that her present plan will not provide v
sufficient cash. If Priscilla 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.
Transcribed Image Text:At the beginning of the school year, Priscilla Wescott 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)
$6,250
Purchase season football tickets in September
90
Additional entertainment for each month
220
Pay fall semester tuition in September
3,400
Pay rent at the beginning of each month
300
Pay for food each month
170
Pay apartment deposit on September 2 (to be returned December 15)
400
Part-time job earnings each month (net of taxes)
780
a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except 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:
Additional entertainment x
Deposit v
Total cash receipts
Less estimated cash payments for:
Cash X
Additional entertainment v
Insurance X
Movie tickets X
Part-time job x
Prepaid rent X
Total cash payments
$
Cash increase (decrease)
Less cash balance at beginning of month x
Cash balance at end of month
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