Question - At the beginning of the school year, Sheldon Allman decided to prepare a cash budget for the months of September, October, November, and December. The following information relates to the budget.
*Cash balance, September1 $4100*purchase season football tickets in September $200 *additional entrainment for each month $150 *pay semester tuition on September 3 $3000 *pay rent at the beginning of each month $450 *pay for food each month $250 *pay apartment deposit on September2 (to be returned December 15) $300 *part-time job earnings each month $600.
1. Prepare a cash budget for September, October, November, and December.
2. Are the budgets prepared as static budgets or flexible budgets?
3. What are the budget implications for Sheldon Allman?