Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 1

Personal budget
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:

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