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) $7,050 Purchase season football tickets in September 100 Additional entertainment for each month 240 Pay fall semester tuition in September 3,800 Pay rent at the beginning of each month 340 Pay for food each month 190 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 870 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: $fill in the blank 8a60b9fda06ff99_2 $fill in the blank 8a60b9fda06ff99_3 $fill in the blank 8a60b9fda06ff99_4 $fill in the blank 8a60b9fda06ff99_5 fill in the blank 8a60b9fda06ff99_7 Total cash receipts $fill in the blank 8a60b9fda06ff99_8 $fill in the blank 8a60b9fda06ff99_9 $fill in the blank 8a60b9fda06ff99_10 $fill in the blank 8a60b9fda06ff99_11 Less estimated cash payments for: $fill in the blank 8a60b9fda06ff99_13 fill in the blank 8a60b9fda06ff99_15 $fill in the blank 8a60b9fda06ff99_16 $fill in the blank 8a60b9fda06ff99_17 $fill in the blank 8a60b9fda06ff99_18 fill in the blank 8a60b9fda06ff99_20 fill in the blank 8a60b9fda06ff99_22 fill in the blank 8a60b9fda06ff99_23 fill in the blank 8a60b9fda06ff99_24 fill in the blank 8a60b9fda06ff99_25 fill in the blank 8a60b9fda06ff99_27 fill in the blank 8a60b9fda06ff99_28 fill in the blank 8a60b9fda06ff99_29 fill in the blank 8a60b9fda06ff99_30 fill in the blank 8a60b9fda06ff99_32 Total cash payments $fill in the blank 8a60b9fda06ff99_33 $fill in the blank 8a60b9fda06ff99_34 $fill in the blank 8a60b9fda06ff99_35 $fill in the blank 8a60b9fda06ff99_36 Cash increase (decrease) $fill in the blank 8a60b9fda06ff99_37 $fill in the blank 8a60b9fda06ff99_38 $fill in the blank 8a60b9fda06ff99_39 $fill in the blank 8a60b9fda06ff99_40 fill in the blank 8a60b9fda06ff99_42 fill in the blank 8a60b9fda06ff99_43 fill in the blank 8a60b9fda06ff99_44 fill in the blank 8a60b9fda06ff99_45 Cash balance at end of month $fill in the blank 8a60b9fda06ff99_46 $fill in the blank 8a60b9fda06ff99_47 $fill in the blank 8a60b9fda06ff99_48 $fill in the blank 8a60b9fda06ff99_49 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 1c45e5f94fbd032_3 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: Cash balance, September 1 (from a summer job) $7,050 Purchase season football tickets in September 100 Additional entertainment for each month 240 Pay fall semester tuition in September 3,800 Pay rent at the beginning of each month 340 Pay for food each month 190 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 870 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: $fill in the blank 8a60b9fda06ff99_2 $fill in the blank 8a60b9fda06ff99_3 $fill in the blank 8a60b9fda06ff99_4 $fill in the blank 8a60b9fda06ff99_5 fill in the blank 8a60b9fda06ff99_7 Total cash receipts $fill in the blank 8a60b9fda06ff99_8 $fill in the blank 8a60b9fda06ff99_9 $fill in the blank 8a60b9fda06ff99_10 $fill in the blank 8a60b9fda06ff99_11 Less estimated cash payments for: $fill in the blank 8a60b9fda06ff99_13 fill in the blank 8a60b9fda06ff99_15 $fill in the blank 8a60b9fda06ff99_16 $fill in the blank 8a60b9fda06ff99_17 $fill in the blank 8a60b9fda06ff99_18 fill in the blank 8a60b9fda06ff99_20 fill in the blank 8a60b9fda06ff99_22 fill in the blank 8a60b9fda06ff99_23 fill in the blank 8a60b9fda06ff99_24 fill in the blank 8a60b9fda06ff99_25 fill in the blank 8a60b9fda06ff99_27 fill in the blank 8a60b9fda06ff99_28 fill in the blank 8a60b9fda06ff99_29 fill in the blank 8a60b9fda06ff99_30 fill in the blank 8a60b9fda06ff99_32 Total cash payments $fill in the blank 8a60b9fda06ff99_33 $fill in the blank 8a60b9fda06ff99_34 $fill in the blank 8a60b9fda06ff99_35 $fill in the blank 8a60b9fda06ff99_36 Cash increase (decrease) $fill in the blank 8a60b9fda06ff99_37 $fill in the blank 8a60b9fda06ff99_38 $fill in the blank 8a60b9fda06ff99_39 $fill in the blank 8a60b9fda06ff99_40 fill in the blank 8a60b9fda06ff99_42 fill in the blank 8a60b9fda06ff99_43 fill in the blank 8a60b9fda06ff99_44 fill in the blank 8a60b9fda06ff99_45 Cash balance at end of month $fill in the blank 8a60b9fda06ff99_46 $fill in the blank 8a60b9fda06ff99_47 $fill in the blank 8a60b9fda06ff99_48 $fill in the blank 8a60b9fda06ff99_49 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 1c45e5f94fbd032_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

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)	$7,050
Purchase season football tickets in September	100
Additional entertainment for each month	240
Pay fall semester tuition in September	3,800
Pay rent at the beginning of each month	340
Pay for food each month	190
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	870

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:
	$fill in the blank 8a60b9fda06ff99_2	$fill in the blank 8a60b9fda06ff99_3	$fill in the blank 8a60b9fda06ff99_4	$fill in the blank 8a60b9fda06ff99_5
				fill in the blank 8a60b9fda06ff99_7
Total cash receipts	$fill in the blank 8a60b9fda06ff99_8	$fill in the blank 8a60b9fda06ff99_9	$fill in the blank 8a60b9fda06ff99_10	$fill in the blank 8a60b9fda06ff99_11
Less estimated cash payments for:
	$fill in the blank 8a60b9fda06ff99_13
	fill in the blank 8a60b9fda06ff99_15	$fill in the blank 8a60b9fda06ff99_16	$fill in the blank 8a60b9fda06ff99_17	$fill in the blank 8a60b9fda06ff99_18
	fill in the blank 8a60b9fda06ff99_20
	fill in the blank 8a60b9fda06ff99_22	fill in the blank 8a60b9fda06ff99_23	fill in the blank 8a60b9fda06ff99_24	fill in the blank 8a60b9fda06ff99_25
	fill in the blank 8a60b9fda06ff99_27	fill in the blank 8a60b9fda06ff99_28	fill in the blank 8a60b9fda06ff99_29	fill in the blank 8a60b9fda06ff99_30
	fill in the blank 8a60b9fda06ff99_32
Total cash payments	$fill in the blank 8a60b9fda06ff99_33	$fill in the blank 8a60b9fda06ff99_34	$fill in the blank 8a60b9fda06ff99_35	$fill in the blank 8a60b9fda06ff99_36
Cash increase (decrease)	$fill in the blank 8a60b9fda06ff99_37	$fill in the blank 8a60b9fda06ff99_38	$fill in the blank 8a60b9fda06ff99_39	$fill in the blank 8a60b9fda06ff99_40
	fill in the blank 8a60b9fda06ff99_42	fill in the blank 8a60b9fda06ff99_43	fill in the blank 8a60b9fda06ff99_44	fill in the blank 8a60b9fda06ff99_45
Cash balance at end of month	$fill in the blank 8a60b9fda06ff99_46	$fill in the blank 8a60b9fda06ff99_47	$fill in the blank 8a60b9fda06ff99_48	$fill in the blank 8a60b9fda06ff99_49

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 1c45e5f94fbd032_3 at the end of December, with no time left to adjust.

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