1 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) $7,510 Purchase season football tickets in September 100 Additional entertainment for each month 260 Pay fall semester tuition in September 4,100 Pay rent at the beginning of each month 360 Pay for food each month 200 Pay apartment deposit on September 2 (to be returned December 15) 500 Part time job earnings each month (net of taxes) 930 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 b What are the budget implications for Craig Kovar Craig can see that his present plan will not provide sufficient cash If Craig did not budget but went ahead with the original plan, he would be short at the end of December, with no time left to adjust

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 23, 2024

1. Personal Budget At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November,

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)	$7,510
Purchase season football tickets in September	100
Additional entertainment for each month	260
Pay fall semester tuition in September	4,100
Pay rent at the beginning of each month	360
Pay for food each month	200
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	930

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.

b. What are the budget implications for Craig Kovar?

Craig can see that his present plan will not provide sufficient cash. If Craig did not budget but went ahead with the original plan, he would be _________ short at the end of December, with no time left to adjust.