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 pla 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: $7,940 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 i Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) Line Item Description Estimated cash receipts from: 110 Total cash receipts Less estimated cash payments for: 270 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 4,300 380 220 500 980 September October November December DO

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Less estimated cash payments for:
Total cash payments
Cash increase (decrease)
Cash balance at end of month
E
b. Are the four monthly budgets that are presented prepared as static budgets or flexuble 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
at the end of December, with no time left to adjust.
Transcribed Image Text:Less estimated cash payments for: Total cash payments Cash increase (decrease) Cash balance at end of month E b. Are the four monthly budgets that are presented prepared as static budgets or flexuble 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 at the end of December, with no time left to adjust.
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:
$7,940
110
270.
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)
Part-time job earnings each month (net of taxes)
Line Item Description
Estimated cash receipts from:
4,300
Total cash receipts
Less estimated cash payments for:
380
220
500
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
980
September October November December
Transcribed Image Text: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: $7,940 110 270. 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) Part-time job earnings each month (net of taxes) Line Item Description Estimated cash receipts from: 4,300 Total cash receipts Less estimated cash payments for: 380 220 500 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 31 980 September October November December
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