Preparing a Cash Budget

Sofia expects to earn $3800 from her summer job and $1500 from working as a babysitter. She receives gifts worth $400 from her friends and family on her birthday. A scholarship from a local Book Reader's Club adds $1000 each year while she is in college.

Additional details:

Sofia's family pays for her college costs, except for room and boarding

Her planned expenditures for the year include the apartment rent of $150 per month for 12 months and annual food costs of $5000.

Monthly transportation and entertainment costs are $40 and $50, respectively.

A cash reserve of $500 needs to be maintained for travel and other emergencies.

At the beginning of the year, Sofia has the cash reserve and $200. Her father asks Sofia if she would need a loan during the year. Prepare Sofia's personal cash budget for the year based on the data given, and suggest an appropriate response for her father.