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 semeste tuition, which is the same as the fall tuition. The following information relates to the budget: $9,250 160 Cash balance, September 1 (from a summer job) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) 250 4,800 600 550 600 1.200
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 semeste tuition, which is the same as the fall tuition. The following information relates to the budget: $9,250 160 Cash balance, September 1 (from a summer job) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) 250 4,800 600 550 600 1.200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:### Preparing a Personal Cash Budget for College Expenses
At 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
#### Assignment
a. 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 Table
Craig Kovar
Cash Budget
For the Four Months Ending December 31
Prepare a detailed financial plan considering the needs and expenses over these four months.

Transcribed Image Text:**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
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