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: Line Item Description Amount Cash balance, September 1 (from a summer job) $7,870 Purchase season football tickets in September 110 Additional entertainment for each month 270 Pay fall semester tuition in September 4,200 Pay rent at the beginning of each month 380 Pay for food each month 220 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 980 Question Content Area 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 KovarCash BudgetFor the Four Months Ending December 31 Line Item Description September October November December Estimated cash receipts from: $Part-time job $Part-time job $Part-time job $Part-time job Deposit Total cash receipts $Total cash receipts $Total cash receipts $Total cash receipts $Total cash receipts Less estimated cash payments for: $Season football tickets Additional entertainment $Additional entertainment $Additional entertainment $Additional entertainment Tuition Rent Rent Rent Rent Food Food Food Food Deposit Total cash payments $Total cash payments $Total cash payments $Total cash payments $Total cash payments Cash increase (decrease) $Cash increase (decrease) $Cash increase (decrease) $Cash increase (decrease) $Cash increase (decrease) Plus cash balance at beginning of month Plus cash balance at beginning of month Plus cash balance at beginning of month Plus cash balance at beginning of month Cash balance at end of month $Cash balance at end of month $Cash balance at end of month $Cash balance at end of month $Cash balance at end of month Question Content Area b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? c. What are the budget implications for Craig Kovar? Craig can see that his present plan fill in the blank 1 of 1 sufficient cash. If Craig did not budget but went ahead with the original plan, he would be fill in the blank 2 of 3$ fill in the blank 3 of 3 at the end of December, with no time left to adjust.

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: Line Item Description Amount Cash balance, September 1 (from a summer job) $7,870 Purchase season football tickets in September 110 Additional entertainment for each month 270 Pay fall semester tuition in September 4,200 Pay rent at the beginning of each month 380 Pay for food each month 220 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 980 Question Content Area 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 KovarCash BudgetFor the Four Months Ending December 31 Line Item Description September October November December Estimated cash receipts from: $Part-time job $Part-time job $Part-time job $Part-time job Deposit Total cash receipts $Total cash receipts $Total cash receipts $Total cash receipts $Total cash receipts Less estimated cash payments for: $Season football tickets Additional entertainment $Additional entertainment $Additional entertainment $Additional entertainment Tuition Rent Rent Rent Rent Food Food Food Food Deposit Total cash payments $Total cash payments $Total cash payments $Total cash payments $Total cash payments Cash increase (decrease) $Cash increase (decrease) $Cash increase (decrease) $Cash increase (decrease) $Cash increase (decrease) Plus cash balance at beginning of month Plus cash balance at beginning of month Plus cash balance at beginning of month Plus cash balance at beginning of month Cash balance at end of month $Cash balance at end of month $Cash balance at end of month $Cash balance at end of month $Cash balance at end of month Question Content Area b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? c. What are the budget implications for Craig Kovar? Craig can see that his present plan fill in the blank 1 of 1 sufficient cash. If Craig did not budget but went ahead with the original plan, he would be fill in the blank 2 of 3$ fill in the blank 3 of 3 at the end of December, with no time left to adjust.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Line Item Description	Amount
Cash balance, September 1 (from a summer job)	$7,870
Purchase season football tickets in September	110
Additional entertainment for each month	270
Pay fall semester tuition in September	4,200
Pay rent at the beginning of each month	380
Pay for food each month	220
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	980

Question Content Area

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 KovarCash BudgetFor the Four Months Ending December 31

Line Item Description	September	October	November	December
Estimated cash receipts from:
	$Part-time job	$Part-time job	$Part-time job	$Part-time job
				Deposit
Total cash receipts	$Total cash receipts	$Total cash receipts	$Total cash receipts	$Total cash receipts
Less estimated cash payments for:
	$Season football tickets
	Additional entertainment	$Additional entertainment	$Additional entertainment	$Additional entertainment
	Tuition
	Rent	Rent	Rent	Rent
	Food	Food	Food	Food
	Deposit
Total cash payments	$Total cash payments	$Total cash payments	$Total cash payments	$Total cash payments
Cash increase (decrease)	$Cash increase (decrease)	$Cash increase (decrease)	$Cash increase (decrease)	$Cash increase (decrease)
	Plus cash balance at beginning of month	Plus cash balance at beginning of month	Plus cash balance at beginning of month	Plus cash balance at beginning of month
Cash balance at end of month	$Cash balance at end of month	$Cash balance at end of month	$Cash balance at end of month	$Cash balance at end of month

Question Content Area

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. What are the budget implications for Craig Kovar?

Craig can see that his present plan fill in the blank 1 of 1

sufficient cash. If Craig did not budget but went ahead with the original plan, he would be fill in the blank 2 of 3$ fill in the blank 3 of 3

at the end of December, with no time left to adjust.

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