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 refates to the budget:

$\backslash$table$[[$Cash balance, September $1^1($from a summer job$),],[$Purchase season football tickets in September,$96,290],[$Additional entertainment for each month,$220],[$Pay fall semester tuition in September,$3,400],[$Pay rent at the beginning of each month,$300],[$Pay for food each month,$170],[$Pay apartment deposit on September $2($to be returned December $15),400],[$Part$-$time job earnings each month $($net of taxes$),780]]$

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 $31$

$\backslash$table$[[$Line Item Description,September October November December$],[$Estimated cash receipts from:,$]]$

Craig Kovar

Cash Budget

For the Four Months Ending December $31$

b$.$ Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c$.$ What are the budget imptications 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 s at the end of December, with no time left to adjust.