Chapter 22 Homework eBook 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) $8,890 Purchase season football tickets in September 120 Additional entertainment for each month 310 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 430 Pay for food each month 240 600 Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) 1,100 a. Prepare a cash budget for September October, November, and December. Use the minus sign to indicate cash outfiows, a decrease in cash or cash payments. Craig Kovar Cash Budget For the Four Months Ending December 31 September October Estimated cash receipts from: Part-time job November December O O Deposit More] Check My Work Next Chapter 22 Homework eBook Show Me How November December For the Four Months Ending December 31 September October Estimated cash receipts from: Part-time job 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 Feedback Check My Work Next Chapter 22 Homework eBook E Show Me How Check My Work Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? Static C. What are the budget implications for Craig Kovar? sufficient cash. If Craig did not budget but went ahead with the original plan, he would be s short at the end of Craig can see that his present plan will not provide December, with no time left to adjust. Feedback Check My Work Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? Feedback Check My Work Next