| | Personal budget |
| | At the beginning of the school year, Joe Student 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: |
| | DATA |
| | Cash balance, September 1 (from a summer job) | | | $8,700 |
| | Purchase season football tickets in September | | | 170 |
| | Additional entertainment for each month | | | 270 |
| | Pay fall semester tuition in September | | | 4,500 |
| | Pay rent at the beginning of each month | | | 650 |
| | Pay for food each month | | | 600 |
| | Pay apartment deposit on September 2 (to be returned December 15) | | | 650 |
| | Part-time job earnings each month (net of taxes) | | | 1,300 |
| | Prepare the cash budget for the quarter of the year. |
| | | Joe Student |
| | | Cash Budget |
| | | For the Four Months Ending December 31 |
| | | | September | October | November | December |
| | a. | Estimated cash receipts from: |
| | | | 1300 | 1300 | 1300 | 1300 |
| | | | | | | 650 |
| | | Total cash receipts |
| | | Less estimated cash payments for: |
| | | Total cash payments |
| | | Cash increase (decrease) |
| | Beginning Cash balance | | 8700 |
| | | Cash balance at end of month |
| | c. | Budget surplus/shortage at the end of December |
| | Provide a 150-300 word statement as to whether Joe will have enough money at the end of December to cover the spring semester's tuition. Include figures and shortage/overage amounts. |
| 2 | Flexible budget for selling and administrative expenses for a service company |
| | Tax Services Inc. (a fictitious company) uses flexible budgets that are based on the following data: |
| | DATA |
| | Sales commissions | | 6% | of sales |
| | Advertising expense | | 16% | of sales |
| | Miscellaneous administrative expense | | $8,500 | per month plus | 4% | of sales |
| | Office salaries expense | | $54,000 | per month |
| | Customer support expenses | | $17,000 | per month plus | 27% | of sales |
| | Research and development expense | | $73,000 | per month |
| | Select the corresponding accounts. Using formulas and cell references, perform the required analysis, and input your answers into the green cells in the C, D, E, and F columns. Enter all amounts as positive numbers. |
| | Tax Services Inc. |
| | Flexible Selling and Administrative Expenses Budget |
| | For the Month Ending October 31 |
| | Total sales | | $500,000 | $800,000 | $1,100,000 |
| | Variable cost: |
| | Total variable cost |
| | Fixed cost: |
| | Total fixed cost |
| | Total selling and administrative expenses |
attachment_13.xlsx
