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) $9,250 Purchase season football tickets in September 160 Additional entertainment for each month 250 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 600 Pay for food each month 550 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,200 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 $Part-time job $Part-time job $Part-time job Deposit Total cash receipts $fill in the blank fff178fab02dfb7_8 $fill in the blank fff178fab02dfb7_9 $fill in the blank fff178fab02dfb7_10 $fill in the blank fff178fab02dfb7_11 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 $fill in the blank fff178fab02dfb7_33 $fill in the blank fff178fab02dfb7_34 $fill in the blank fff178fab02dfb7_35 $fill in the blank fff178fab02dfb7_36 Cash increase (decrease) $fill in the blank fff178fab02dfb7_37 $fill in the blank fff178fab02dfb7_38 $fill in the blank fff178fab02dfb7_39 $fill in the blank fff178fab02dfb7_40 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 $fill in the blank fff178fab02dfb7_46 $fill in the blank fff178fab02dfb7_47 $fill in the blank fff178fab02dfb7_48 $fill in the blank fff178fab02dfb7_49 Feedback 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 sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $fill in the blank 4977e107b02dffd_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: Cash balance, September 1 (from a summer job) $9,250 Purchase season football tickets in September 160 Additional entertainment for each month 250 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 600 Pay for food each month 550 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,200 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 $Part-time job $Part-time job $Part-time job Deposit Total cash receipts $fill in the blank fff178fab02dfb7_8 $fill in the blank fff178fab02dfb7_9 $fill in the blank fff178fab02dfb7_10 $fill in the blank fff178fab02dfb7_11 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 $fill in the blank fff178fab02dfb7_33 $fill in the blank fff178fab02dfb7_34 $fill in the blank fff178fab02dfb7_35 $fill in the blank fff178fab02dfb7_36 Cash increase (decrease) $fill in the blank fff178fab02dfb7_37 $fill in the blank fff178fab02dfb7_38 $fill in the blank fff178fab02dfb7_39 $fill in the blank fff178fab02dfb7_40 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 $fill in the blank fff178fab02dfb7_46 $fill in the blank fff178fab02dfb7_47 $fill in the blank fff178fab02dfb7_48 $fill in the blank fff178fab02dfb7_49 Feedback 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 sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $fill in the blank 4977e107b02dffd_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

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Personal Budget

Cash balance, September 1 (from a summer job)	$9,250
Purchase season football tickets in September	160
Additional entertainment for each month	250
Pay fall semester tuition in September	4,800
Pay rent at the beginning of each month	600
Pay for food each month	550
Pay apartment deposit on September 2 (to be returned December 15)	600
Part-time job earnings each month (net of taxes)	1,200

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	$Part-time job	$Part-time job	$Part-time job
				Deposit
Total cash receipts	$fill in the blank fff178fab02dfb7_8	$fill in the blank fff178fab02dfb7_9	$fill in the blank fff178fab02dfb7_10	$fill in the blank fff178fab02dfb7_11
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	$fill in the blank fff178fab02dfb7_33	$fill in the blank fff178fab02dfb7_34	$fill in the blank fff178fab02dfb7_35	$fill in the blank fff178fab02dfb7_36
Cash increase (decrease)	$fill in the blank fff178fab02dfb7_37	$fill in the blank fff178fab02dfb7_38	$fill in the blank fff178fab02dfb7_39	$fill in the blank fff178fab02dfb7_40
	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	$fill in the blank fff178fab02dfb7_46	$fill in the blank fff178fab02dfb7_47	$fill in the blank fff178fab02dfb7_48	$fill in the blank fff178fab02dfb7_49