Prepare a cash budget for September, October, November, and Dece
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.
Personal Budget
At the beginning of the school year, Katherine Malloy decided to prepare a
| Cash balance, September 1 (from a summer job) | $8,860 |
| Purchase season football tickets in September | 120 |
| Additional entertainment for each month | 310 |
| Pay fall semester tuition in September | 4,800 |
| 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) | 1,100 |
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 | $fill in the blank 9e24c7fd9fdf051_1 | $fill in the blank 9e24c7fd9fdf051_2 | $fill in the blank 9e24c7fd9fdf051_3 | $fill in the blank 9e24c7fd9fdf051_4 |
| Deposit | fill in the blank 9e24c7fd9fdf051_5 | |||
| Total cash receipts | $fill in the blank 9e24c7fd9fdf051_6 | $fill in the blank 9e24c7fd9fdf051_7 | $fill in the blank 9e24c7fd9fdf051_8 | $fill in the blank 9e24c7fd9fdf051_9 |
| Estimated cash payments for: | ||||
| Season football tickets | $fill in the blank 9e24c7fd9fdf051_10 | |||
| Additional entertainment | fill in the blank 9e24c7fd9fdf051_11 | $fill in the blank 9e24c7fd9fdf051_12 | $fill in the blank 9e24c7fd9fdf051_13 | $fill in the blank 9e24c7fd9fdf051_14 |
| Tuition | fill in the blank 9e24c7fd9fdf051_15 | |||
| Rent | fill in the blank 9e24c7fd9fdf051_16 | fill in the blank 9e24c7fd9fdf051_17 | fill in the blank 9e24c7fd9fdf051_18 | fill in the blank 9e24c7fd9fdf051_19 |
| Food | fill in the blank 9e24c7fd9fdf051_20 | fill in the blank 9e24c7fd9fdf051_21 | fill in the blank 9e24c7fd9fdf051_22 | fill in the blank 9e24c7fd9fdf051_23 |
| Deposit | fill in the blank 9e24c7fd9fdf051_24 | |||
| Total cash payments | $fill in the blank 9e24c7fd9fdf051_25 | $fill in the blank 9e24c7fd9fdf051_26 | $fill in the blank 9e24c7fd9fdf051_27 | $fill in the blank 9e24c7fd9fdf051_28 |
| Overall cash increase (decrease) | $fill in the blank 9e24c7fd9fdf051_29 | $fill in the blank 9e24c7fd9fdf051_30 | $fill in the blank 9e24c7fd9fdf051_31 | $fill in the blank 9e24c7fd9fdf051_32 |
| Cash balance at beginning of month | fill in the blank 9e24c7fd9fdf051_33 | fill in the blank 9e24c7fd9fdf051_34 | fill in the blank 9e24c7fd9fdf051_35 | fill in the blank 9e24c7fd9fdf051_36 |
| Cash balance at end of month | $fill in the blank 9e24c7fd9fdf051_37 | $fill in the blank 9e24c7fd9fdf051_38 | $fill in the blank 9e24c7fd9fdf051_39 | $fill in the blank 9e24c7fd9fdf051_40 |
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. Malloy can see that her present plan sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $fill in the blank 1f904c005f9c06c_3 at the end of December, with no time left to adjust.
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