Question

At the beginning of the 2014 school year, Jen Lassiter 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) .....................$5,970
Purchase season football tickets in September.............150
Additional entertainment for each month...............................300
Pay fall semester tuition in September..............4,500
Pay rent at the beginning of each month...............300
Pay for food each month......................180
Pay apartment deposit on September 2 (to be returned December 15) ...500
Part-time job earnings each month (net of taxes)...........1,450
a. Prepare a cash budget for September, October, November, and December.
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. What are the budget implications for Jen Lassiter?



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  • CreatedJune 27, 2014
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