1. At the beginning of the school year, Bailey Eyelash 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 Inflow/outflow Cash balance, September 1 (from employment) Monthly Netflix subscription Additional entertainment each month Fall tuition payment in September Monthly rent Monthly food Apartment deposit paid on Sep 2. Will be returned on Dec 15. Monthly net earnings from employment Dollar Amount $6,000 14 250 3,500 450 400 450 1,300 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 Bailey Eyelash?

1. At the beginning of the school year, Bailey Eyelash 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 Inflow/outflow Cash balance, September 1 (from employment) Monthly Netflix subscription Additional entertainment each month Fall tuition payment in September Monthly rent Monthly food Apartment deposit paid on Sep 2. Will be returned on Dec 15. Monthly net earnings from employment Dollar Amount $6,000 14 250 3,500 450 400 450 1,300 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 Bailey Eyelash?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1E: At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of...

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1. At the beginning of the school year, Katherine Malloy 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) $7,060