Question

1. Personal An accounting device used to plan and control resources of operational departments and divisions.Budget

   At the beginning of the school year, Katherine Malloy decided to prepare a A budget of estimated cash receipts and payments.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)	$7,080
   Purchase season football tickets in September	100
   Additional entertainment for each month	250
   Pay fall semester tuition in September	3,800
   Pay rent at the beginning of each month	340
   Pay for food each month	190
   Pay apartment deposit on September 2 (to be returned December 15)	500
   Part-time job earnings each month (net of taxes)	880

   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.

   KATHERINE MALLOY
   Cash Budget
   For the Four Months Ending December 31
   	September	October	November	December
   Estimated cash receipts from:
   Part-time job	$ 880	$ 880	$ 880	$ 880
   Deposit				500
   Total cash receipts	$ 880	$ 880	$ 880	$ 1,380
   Estimated cash payments for:
   Season football tickets	$ 100
   Additional entertainment	250	$ 250	$ 250	$ 250
   Tuition	3,800
   Rent	340	340	340	340
   Food	190	190	190	190
   Deposit	500
   Total cash payments	$	$	$	$
   Overall cash increase (decrease)	$	$	$	$
   Cash balance at beginning of month	7,080
   Cash balance at end of month	$	$	$	$

   Feedback

   b. Are the four monthly budgets that are presented prepared as A budget that does not adjust to changes in activity levels.static budgets or A budget that adjusts for varying rates of activity.flexible budgets?
   
   Static

   • Static
   • Flexible

   c. Malloy can see that her present plan

   • will provide
   • will not provide
   sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $
   • over
   • short
   at the end of December, with no time left to adjust.

Answer 1

a.

b. Its a flexible budget as it has all the changes according to change in cash

c. As per the budjet Malloy has enough cash to fullfil her needs and If she went ahead without a plan, then also she would have enough money.