Cash Budget Assignment At the beginning of the 2018 school year, Britney Logan d
ID: 2534690 • Letter: C
Question
Cash Budget Assignment At the beginning of the 2018 school year, Britney Logan 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) $7,000 Purchase season football tickets for cash in September $100 Additional entertainment to be paid for each month $250 Pay fall semester tuition on September 3 $3,800 Pay rent at the beginning of each month $350 Pay for food each month $200 Pay apartment deposit on September 2 (to be returned Dec. 15) $500 Part-time job earnings each month (net of taxes) $900 Prepare a cash budget for September, October, November, and December.
Explanation / Answer
SOLUTION
BRITNEY LOGAN
Cash Budget
For the Four Months Ending December 31, 2018
September ($) October ($) November ($) December ($) Estimated cash receipts from: Part-time job 900 900 900 900 Deposit 500 Total cash receipts 900 900 900 1,400 Estimated cash payments for: Season football tickets 100 Additional entertainment 250 250 250 250 Tuition 3,800 Rent 350 350 350 350 Food 200 200 200 200 Deposit 500 Total cash payments 5,200 800 800 800 Cash increase (decrease) (4,300) 100 100 600 Cash balance at beginning of month 7,000 2,700 2,800 2,900 Cash balance at end of month 2,700 2,800 2,900 3,500