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)	$7,510
Purchase season football tickets in September	100
Additional entertainment for each month	260
Pay fall semester tuition in September	4,100
Pay rent at the beginning of each month	360
Pay for food each month	200
Pay apartment deposit on September 2 (to be returned December 15)	500
Part-time job earnings each month (net of taxes)	930

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:
Part-time job	$fill in the blank e5886a012073fa2_2	$fill in the blank e5886a012073fa2_3	$fill in the blank e5886a012073fa2_4	$fill in the blank e5886a012073fa2_5
Deposit				fill in the blank e5886a012073fa2_7
Total cash receipts	$fill in the blank e5886a012073fa2_8	$fill in the blank e5886a012073fa2_9	$fill in the blank e5886a012073fa2_10	$fill in the blank e5886a012073fa2_11
Less estimated cash payments for:
Season football tickets	$fill in the blank e5886a012073fa2_13
Additional entertainment	fill in the blank e5886a012073fa2_15	$fill in the blank e5886a012073fa2_16	$fill in the blank e5886a012073fa2_17	$fill in the blank e5886a012073fa2_18
Tuition	fill in the blank e5886a012073fa2_20
Rent	fill in the blank e5886a012073fa2_22	fill in the blank e5886a012073fa2_23	fill in the blank e5886a012073fa2_24	fill in the blank e5886a012073fa2_25
Food	fill in the blank e5886a012073fa2_27	fill in the blank e5886a012073fa2_28	fill in the blank e5886a012073fa2_29	fill in the blank e5886a012073fa2_30
Deposit	fill in the blank e5886a012073fa2_32
Total cash payments	$fill in the blank e5886a012073fa2_33	$fill in the blank e5886a012073fa2_34	$fill in the blank e5886a012073fa2_35	$fill in the blank e5886a012073fa2_36
Cash increase (decrease)	$fill in the blank e5886a012073fa2_37	$fill in the blank e5886a012073fa2_38	$fill in the blank e5886a012073fa2_39	$fill in the blank e5886a012073fa2_40
Less cash balance at beginning of month	fill in the blank e5886a012073fa2_42	fill in the blank e5886a012073fa2_43	fill in the blank e5886a012073fa2_44	fill in the blank e5886a012073fa2_45
Cash balance at end of month	$fill in the blank e5886a012073fa2_46	$fill in the blank e5886a012073fa2_47	$fill in the blank e5886a012073fa2_48	$fill in the blank e5886a012073fa2_49

Feedback

Sometimes an item may be a decrease in one period and an increase in a different period.

Review the definitions of static budgets and flexible budgets.

What weaknesses are shown by this cash budget?

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 not provide sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $fill in the blank 9b0586052fd4fe0_3 short at the end of December, with no time left to adjust.

sorry about the weird code the website the assignment is on is glitched