Identify which items you would include in a budgeted cash flow statement and budgeted income statement for yourself for the next month. Be sure to consider cash receipts from your salary, contributions from your parents or scholarships, planned payments for books, gasoline, rent, credit card and car loan payments, clothes, food, phone and computer monthly plans, discretionary leisure items such as planned entertainment, taxes, savings, and so on.

a. Classify the costs, as much as possible, as variable, fixed (committed or discretionary), or mixed.

b. What differences do you see between your income statement and your cash flow statement?

c. Try to list amounts for each cash inflow or outflow, even if the amounts are just estimates. State the assumptions underlying the estimates.

d. What accounts and amounts would you have in a budgeted balance sheet as of the beginning of the budgeted month?

e. What benefits could you derive from preparing a budgeted income statement, budgeted statement of cash receipts and disbursements, and budgeted balance sheet?