Prepare a quarterly cash budget for Sam and Suzy covering the months October through December 2013. b. Are there individual months that incur a deficit?

Preparation of cash budget Sam and Suzy Sizeman need to prepare a cash budget for the last quarte Show more Preparation of cash budget Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2013 to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their take-home pay (that is monthly utilities normally run 5% of monthly take-home pay). The information in the following table can be used to create their fourth-quarter budget for 2013. Income Monthly take-home pay $4900 Expenses Housing 30% Utilities 5% Food 10% Transportation 7% Medical/dental .5% Clothing for October and November 3% Clothing for December $440 Property taxes (November only) 11.5% Appliances 1% Personal care 2% Entertainment for October and November 6% Entertainment for December $1500 Savings 7.5% Other 5% Excess cash 4.5% a. Prepare a quarterly cash budget for Sam and Suzy covering the months October through December 2013. b. Are there individual months that incur a deficit? c. What is the cumulative cash surplus or deficit by the end of December 2013? Show less