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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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