At the beginning of the 2015 school year, Robert 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) $6,750
Purchase season football tickets in September 200
Additional entertainment for each month 175
Pay fall semester tuition on September 3 4,300
Pay rent at the beginning of each month 400
Pay for food each month 275
Pay apartment deposit on September 2 (to be returned December 15) 550
Part-time job earnings each month (net of taxes) 1,250
a. Prepare a cash budget for September, October, November, and December
b. Are the four monthly budgets that are presented prepared as static or flexible budgets?
c. What are the budget implications for Robert Logan?