You are currently studying at Boston University. You have decided not to attend

Question

You are currently studying at Boston University.  You have decided not to attend summer school instead you have chosen to work during the summer.  You will earn $800 per month (ignore income taxes).  The first date of employment is June 1 and you will work until August 15 (total of 2.5 months).  In addition, you have a scholarship which pays for your tuition, room and board at Boston University.  You are required to purchase textbooks and pay for any necessary transportation cost to and from school.  You are also responsible to pay for all clothing, extra meals, partying, entertaining and other expenses which you may incur.  You have also been provided the following data:

You will purchase a round-trip air fare ticket at $310 to return home at Thanksgiving

Textbooks are estimated at $550 per semester

School supplies are estimated at $150

Personal clothing has an estimate of $300

You will need an additional $50 per week for fun, meals off campus, entertainment, etc.  Assume there are 15 weeks in a semester

Also, during the summer you plan to spend time with your friends.  You estimate this at $30 per week.  Assume there are 12 weeks in the summer.

Currently in your savings you have $1,500.

Prepare a Cash Budget for the summer and the first semester of college.  Do not prepare two separate budgets but one cash budget with the starting point on June 1 and ending the fall semester.

You will purchase a round-trip air fare ticket at $310 to return home at Thanksgiving

Textbooks are estimated at $550 per semester

School supplies are estimated at $150

Personal clothing has an estimate of $300

You will need an additional $50 per week for fun, meals off campus, entertainment, etc.  Assume there are 15 weeks in a semester

Also, during the summer you plan to spend time with your friends.  You estimate this at $30 per week.  Assume there are 12 weeks in the summer.

Explanation / Answer

Cash Budget Amount

Beginning Balance in Savings $ 1,500.00 Salary From Summer Job Month 2.5 & 800 per month (2.5*800) $ 2,000.00 Cash Available $ 3,500.00 Less Disbursement Airline Ticket $ 310.00 Book $ 550.00 Supplies $ 150.00 Clothing $ 300.00 Miscellaneous Expenses $50 per week and 15 weeks (50*15) $ 750.00 Expenses Relating to fun, meals off campus, entertainment, etc. Miscellaneous Expenses $30 per week And 12 weeks (30*12) $ 360.00 Expenses Relating to time with your friends Total Expences $ 2,420.00 Eastimating ending Balance= ( Cash Avilable less Total Expence) $ 1,080.00

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