ACCTBA1 INDIVIDUAL BUSINESS CASE 2nd Term, Academic Year 2013-2014 Williams, J., Haka, S., Bettner, M.

, & Carcello, J. (2012) Financial Accounting, 15th edition, McGraw-Hill Irwin (with modifications) Cash Budgeting for you as a Student Individuals generally do not prepare statement of cash flows concerning their personal activities. But they do engage in cash budgeting-if not on paper, then at least in their heads. Assume it is December 20 a Monday. While you are in school, you share a small condominium unit with another student and work part time, both near your school to minimize expenses. In two days your rent for January, P5,000, will be due. You now have P2,500 in the bank; every Friday you receive a paycheck for P4,000. You probably see the problem., And it probably doesnt look too serious, you can devise a way to deal with it. Thats what budgeting is all about. Lets take this example a step further. In addition to the facts given above, your weekly cash payments include meals, P1,200, entertainment, P800, and laundry P400. Instructions: a. Using the following cash budget, compute your cash balance at the end of weeks 2,3, and 4. 1 PHP 2,500 4,000 (5,000) (1,200) (800) (400) PHP (900) WEEK 2 3 PHP (900) PHP ? 4,000 4,000 4 PHP

Beginning Cash Balance Expected cash receipts Less: Expected cash outlays Monthly rent Meals Entertainment Laundry Ending cash balance b. Evaluate your financial situation.

? 4,000

PHP

PHP

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Format: Short bond paper Double spaced Once inch margin in all sides Minimum of two pages (not including the cover page) Font: Arial 12 Cover Page:

BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA1 (Sec) Surname, First Name, M.I. Date

Deadline: October 20, 2013 Page 1