lease help me to solve this problem
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me to solve this problem
Transcribed Image Text:Personal budget
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)
$5,300
Purchase season football tickets in September
160
Additional entertainment for each month
260
Pay fall semester tuition in September
3,100
470
Pay rent at the beginning of each month
420
Pay for food each month
470
Pay apartment deposit on September 2 (to be returned December 15)
1,350
Part-time job earnings each month (net of taxes)
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the
required analysis, and input your answers in the questions below.
Open spreadsheet
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 Budaet
Transcribed Image Text:September
October
November
December
Estimated cash receipts from:
Additional entertainment
Total cash recelpts
Less estimated cash payments for:
Total cash payments
Cash increase (decrease)
Cash balance at end of month
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. What are the budget implications for Priscila Wescott?
sufficient cash. Ir Priscilla did not budget but went
at the end of December, with
Priscilla can see that her present plan
ahead with the original plan, she would be $
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