It is May 28 and you have just landed a summer job that will pay you (net of taxes)$800 per month.You start June 1 and will work until mid-August.Your scholarship pays for tuition,room,and board.But you must buy books,pay for transportation to and from school,and pay for clothing,any extra meals,entertainment,and so on.You have gathered the following data:
1.One round trip airline ticket is $260,and you'd like to come home for Thanksgiving (your parents will drive you there in August,and you will try to catch a ride home with another student in December).
2.Books are estimated to cost about $500 per semester for your anticipated major.
3.Supplies should be another $150.
4.Clothing might run $100-you already have almost everything you think you'll need.
5.There are 16 weeks in the semester,and you think you'll need $50 per week to cover extra meals and entertainment.
6.Before school even starts,you need to cover any summer expenses,including going out with friends.$30 a week sounds about right,since all your friends will be working and saving for college as well.There are 11 weeks of summer.
Right now,you have $200 in your chequing account.
A. Prepare a cash budget for the summer and the first semester of university. (Do the entire time period; do not break it down by week or by month.)
B. Comment on the estimated ending balance. What actions can you take, if any, to increase it?

Question

It is May 28 and you have just landed a summer job that will pay you (net of taxes)$800 per month.You start June 1 and will work until mid-August.Your scholarship pays for tuition,room,and board.But you must buy books,pay for transportation to and from school,and pay for clothing,any extra meals,entertainment,and so on.You have gathered the following data:
1.One round trip airline ticket is $260,and you'd like to come home for Thanksgiving (your parents will drive you there in August,and you will try to catch a ride home with another student in December).
2.Books are estimated to cost about $500 per semester for your anticipated major.
3.Supplies should be another $150.
4.Clothing might run $100-you already have almost everything you think you'll need.
5.There are 16 weeks in the semester,and you think you'll need $50 per week to cover extra meals and entertainment.
6.Before school even starts,you need to cover any summer expenses,including going out with friends.$30 a week sounds about right,since all your friends will be working and saving for college as well.There are 11 weeks of summer.
Right now,you have $200 in your chequing account.
 A. Prepare a cash budget for the summer and the first semester of university. (Do the entire time period; do not break it down by week or by month.)
B. Comment on the estimated ending balance. What actions can you take, if any, to increase it?

Quizplus · Accepted Answer

The Answer of It is May 28 and you have just landed a summer job that will pay you (net of taxes)$800 per month.You start June 1 and will work until mid-August.Your scholarship pays for tuition,room,and board.But you must buy books,pay for transportation to and from school,and pay for clothing,any extra meals,entertainment,and so on.You have gathered the following data:
1.One round trip airline ticket is $260,and you'd like to come home for Thanksgiving (your parents will drive you there in August,and you will try to catch a ride home with another student in December).
2.Books are estimated to cost about $500 per semester for your anticipated major.
3.Supplies should be another $150.
4.Clothing might run $100-you already have almost everything you think you'll need.
5.There are 16 weeks in the semester,and you think you'll need $50 per week to cover extra meals and entertainment.
6.Before school even starts,you need to cover any summer expenses,including going out with friends.$30 a week sounds about right,since all your friends will be working and saving for college as well.There are 11 weeks of summer.
Right now,you have $200 in your chequing account.
 A. Prepare a cash budget for the summer and the first semester of university. (Do the entire time period; do not break it down by week or by month.)
B. Comment on the estimated ending balance. What actions can you take, if any, to increase it?

It Is May 28 and You Have Just Landed a Summer