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) $6,800 Purchase season football tickets in September 90 240 3,700 330 Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month 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) 180 500 840 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 Deposit Total cash receipts Less estimated cash payments for: Season football tickets o i bil. Il Additional entertainment Tuition Rent Food Deposit Deposit Total cash payments Cash increase (decrease) ESS Plus cash balance at beginning of month Cash balance at end of month Feedback 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 $ short at the end of December, with no time left to adjust