Personal Budget 120 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) $8,650 Purchase season football tickets in September Additional entertainment for each month 300 Pay fall semester tuition in September 4,700 Pay rent at the beginning of each month 420 Pay for food each month Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) 1,070 240 600 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: 0 Total cash receipts Less estimated cash payments for: [ I. ODO 0000 OD QI DO ) Total cash payments Cash increase (decrease) Less cash balance at beginning of month Cash balance at end of month 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? Craig can see that his present plan will provide sufficient cash. If Craig did not budget but went ahead with the original plan, he would be over at the end of December, with no time left to adjust