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eBook Show Me How Office 365 Question Content Area Personal budget At the beginning of the school year, Craig Kovar decided to prepare a cash

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Office 365

Question Content Area

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) $9,100
Purchase season football tickets in September 140
Additional entertainment for each month 220
Pay fall semester tuition in September 4,700
Pay rent at the beginning of each month 530
Pay for food each month 480
Pay apartment deposit on September 2 (to be returned December 15) 530
Part-time job earnings each month (net of taxes) 1,050

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.

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