Personal budget Show Me How 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 3 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) 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: Part-time job Deposit 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 Total cash receipts 840 September October November December 840 $6,760 90 840 240 3,700 330 180 500 840 840 840 840 840 500 1.340

Personal budget Show Me How 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 3 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) 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: Part-time job Deposit 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 Total cash receipts 840 September October November December 840 $6,760 90 840 240 3,700 330 180 500 840 840 840 840 840 500 1.340

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

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Show Me How
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)
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:
Part-time job
Deposit
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
Total cash receipts
840
September October November December
840
$6,760
90
240
3,700
330
180
840
840
500
840
840
840
840
500
1,340

Deposit
Total cash receipts
Less estimated cash payments for:
Season football tickets
Additional entertainment
Tuition
Rent
Food
Deposit
Total cash payments
Cash increase (decrease)
Plus cash balance at beginning of month
Cash balance at end of month
0 000 000
00 00 00
⠀⠀⠀⠀⠀
10 000
QQQ
840
c. What are the budget implications for Craig Kovar?
Craig can see that his present plan will not provide
with no time left to adjust.
-90
-240
-3,700
-330
-180
-500
-5,040
6,760
-240
-330
-180
-750
840
-240
-330
-180
-750
1,340
-240
-330
-180
-750
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
Static
sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $
PA
120
over
at the end of December,

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