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)	$7,580
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	370
Pay for food each month	210
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	940

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 20ce4cf9d042fd5_3	$fill in the blank 20ce4cf9d042fd5_4	$fill in the blank 20ce4cf9d042fd5_5
				fill in the blank 20ce4cf9d042fd5_7
Total cash receipts	$fill in the blank 20ce4cf9d042fd5_8	$fill in the blank 20ce4cf9d042fd5_9	$fill in the blank 20ce4cf9d042fd5_10	$fill in the blank 20ce4cf9d042fd5_11
Less estimated cash payments for:
	$fill in the blank 20ce4cf9d042fd5_13
	fill in the blank 20ce4cf9d042fd5_15	$fill in the blank 20ce4cf9d042fd5_16	$fill in the blank 20ce4cf9d042fd5_17	$fill in the blank 20ce4cf9d042fd5_18
	fill in the blank 20ce4cf9d042fd5_20
	fill in the blank 20ce4cf9d042fd5_22	fill in the blank 20ce4cf9d042fd5_23	fill in the blank 20ce4cf9d042fd5_24	fill in the blank 20ce4cf9d042fd5_25
	fill in the blank 20ce4cf9d042fd5_27	fill in the blank 20ce4cf9d042fd5_28	fill in the blank 20ce4cf9d042fd5_29	fill in the blank 20ce4cf9d042fd5_30
	fill in the blank 20ce4cf9d042fd5_32
Total cash payments	$fill in the blank 20ce4cf9d042fd5_33	$fill in the blank 20ce4cf9d042fd5_34	$fill in the blank 20ce4cf9d042fd5_35	$fill in the blank 20ce4cf9d042fd5_36
Cash increase (decrease)	$fill in the blank 20ce4cf9d042fd5_37	$fill in the blank 20ce4cf9d042fd5_38	$fill in the blank 20ce4cf9d042fd5_39	$fill in the blank 20ce4cf9d042fd5_40
	fill in the blank 20ce4cf9d042fd5_42	fill in the blank 20ce4cf9d042fd5_43	fill in the blank 20ce4cf9d042fd5_44	fill in the blank 20ce4cf9d042fd5_45
Cash balance at end of month	$fill in the blank 20ce4cf9d042fd5_46	$fill in the blank 20ce4cf9d042fd5_47	$fill in the blank 20ce4cf9d042fd5_48	$fill in the blank 20ce4cf9d042fd5_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 918bcdf8d05207b_3 at the end of December, with no time left to adjust.