### Preparing a Personal Cash Budget for College ExpensesAt the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. This budget aims to ensure there is enough cash on December 31 to cover the spring semester tuition, which matches the fall semester tuition cost. Below is the detailed information used in Craig's budget planning:- **Cash Balance on 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#### Assignmenta. Prepare a cash budget for September, October, November, and December using the above data. Indicate cash outflows with a minus sign (−), representing decreases in or payments of cash.#### Budget TableCraig Kovar Cash Budget For the Four Months Ending December 31 Prepare a detailed financial plan considering the needs and expenses over these four months. **Cash Flow Projection for the Four Months Ending December 31****Estimated Cash Receipts From:**- *Part-time job* - September: $1,200 - October: $1,200 - November: $1,200 - December: $1,200- *Deposit* - September: $1,200 - October: $1,200 - November: $1,200 - December: $500**Total Cash Receipts**- September: $1,200- October: $1,200- November: $1,200- December: $1,700**Less Estimated Cash Payments For:**- *Season football tickets* - September: $160- *Additional entertainment* - October: $250 - December: $250- *Tuition* - September: $3,500- *Rent* - October: $600 - November: $600 - December: $600- *Food* - October: $550 - November: $550 - December: $550- *Deposit* - September: $500**Total Cash Payments**- September: $4,820- October: $730- November: $730- December: $730**Cash Increase (Decrease)**- September: ($4,010)- October: $80- November: $470- December: $970**Plus Cash Balance at Beginning of Month**- $9,250 for each month**Cash Balance at End of Month**- September: $5,240- October: $5,320- November: $5,790- December: $6,760

Answered: Personal Budget At the beginning of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Cash Budget
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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: $6,650 Cash balance, September 1 (from a summer job) Purchase season football tickets in September 90 Additional entertainment for each month 230 Pay fall semester tuition in September 3,600 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 (net of taxes) 820 a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outfiows, a decrease in cash or cash payments. Craig Kovar Cash Budget For the Four Months Ending December 31 Line Item Description Estimated cash receipts from: Total cash recei Less…
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Personal Budget 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) $8,860 Purchase season football tickets in September 120 Additional entertainment for each month 310 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 430 Pay for food each month 240 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,100 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…
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