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: $8,050 Cash balance, September 1 (from a summer job) Purchase season football tickets in September Additional entertainment for each month 110 280 Pay fall semester tuition in September 4,300 390 Pay rent at the beginning of each month Pay for food each month 220 600 Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) 1,000 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 Estimated cash receipts from: Part-time job November December Deposit Total cash receipts $ $ Craig Kovar Cash Budget For the Four Months Ending December 31 September October Estimated cash receipts from: Part-time job November December 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 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? short at the Craig can see that his present plan will not provide sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $ end of December, with no time left to adjust