1. 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)	$8,700
   Purchase season football tickets in September	180
   Additional entertainment for each month	280
   Pay fall semester tuition in September	4,500
   Pay rent at the beginning of each month	680
   Pay for food each month	620
   Pay apartment deposit on September 2 (to be returned December 15)	680
   Part-time job earnings each month (net of taxes)	1,350

   This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

   Open spreadsheet

   a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

   Craig Kovar
   Cash Budget
   For the Four Months Ending December 31
   	September		October		November		December
   Estimated cash receipts from:
   Additional entertainmentFoodPart-time jobRentTuition		$fill in the blank 3		$fill in the blank 4		$fill in the blank 5		$fill in the blank 6
   Additional entertainmentDepositFoodRentTuition								fill in the blank 8
   Total cash receipts		$fill in the blank 9		$fill in the blank 10		$fill in the blank 11		$fill in the blank 12
   Less estimated cash payments for:
   CashInsuranceMovie ticketsPart-time jobSeason football tickets		$fill in the blank 14
   Additional entertainmentCashInsuranceMovie ticketsPart-time job		fill in the blank 16		$fill in the blank 17		$fill in the blank 18		$fill in the blank 19
   CashInsuranceMovie ticketsPart-time jobTuition		fill in the blank 21
   CashInsuranceMovie ticketsPart-time jobRent		fill in the blank 23		fill in the blank 24		fill in the blank 25		fill in the blank 26
   CashFoodInsuranceMovie ticketsPart-time job		fill in the blank 28		fill in the blank 29		fill in the blank 30		fill in the blank 31
   DepositInsuranceMovie ticketsPart-time jobPrepaid rent		fill in the blank 33
   Total cash payments		$fill in the blank 34		$fill in the blank 35		$fill in the blank 36		$fill in the blank 37
   Cash increase (decrease)		$fill in the blank 38		$fill in the blank 39		$fill in the blank 40		$fill in the blank 41
   Less cash balance at beginning of monthPlus cash balance at beginning of month		fill in the blank 43		fill in the blank 44		fill in the blank 45		fill in the blank 46
   Cash balance at end of month		$fill in the blank 47		$fill in the blank 48		$fill in the blank 49		$fill in the blank 50

   b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

   StaticFlexible

   c. What are the budget implications for Craig Kovar?

   Craig can see that his present plan

   will providewill not provide

   sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $fill in the blank 53

   overshort

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