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:
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.
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.