At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job): 6,520 Purchase season football tickets in September: 90 Additional entertainment for each month: 230 Pay fall semester tuition in September: 3,500 Pay rent at the beginning of each month: 320 Pay for food each month: 180 Pay apartment deposit on September 2 (to be returned December 15): 500 Part-time job earnings each month: 810 Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decease in cash or cash payments.  Refer to the picture below for the template.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

  • Cash balance, September 1 (from a summer job): 6,520
  • Purchase season football tickets in September: 90
  • Additional entertainment for each month: 230
  • Pay fall semester tuition in September: 3,500
  • Pay rent at the beginning of each month: 320
  • Pay for food each month: 180
  • Pay apartment deposit on September 2 (to be returned December 15): 500
  • Part-time job earnings each month: 810

Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decease in cash or cash payments. 

Refer to the picture below for the template.

a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
Craig Kovar
Cash Budget
For the Four Months Ending December 31
September
October
November
December
Estimated cash receipts from:
Part-time job
Deposit v
Total cash receipts
Less estimated cash payments for:
Season football tickets
Additional entertainment v
2$
Tuition
38
Rent
Food
Deposit
Total cash payments
$1
Cash increase (decrease)
Plus cash balance at beginning of month
Cash balance at end of month
%24
Transcribed Image Text:a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Craig Kovar Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from: Part-time job Deposit v Total cash receipts Less estimated cash payments for: Season football tickets Additional entertainment v 2$ Tuition 38 Rent Food Deposit Total cash payments $1 Cash increase (decrease) Plus cash balance at beginning of month Cash balance at end of month %24
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