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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) $10,400 Purchase season football tickets in September 170 Additional entertainment for each month 260 Pay fall semester tuition in September 5,400 Pay rent at the beginning of each month 630 Pay for food each month 580 Pay apartment deposit on September 2 (to be returned December 15) 630 Part-time job earnings each month (net of taxes) 1,250 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign. Craig Kovar Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from: Total cash receipts $ Less estimated cash payments for: Total cash payments Cash increase (decrease) Cash balance at end of month b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? c. What are the budget implications 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 $ at the end of December, with no time left to adjust.Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 9% of sales Advertising expense 13% of sales Miscellaneous administrative expense $11,000 per month plus 4% of sales Office salaries expense $45,000 per month Customer support expenses $22,000 per month plus 32% of sales Research and development expense $79,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. X Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $700,000, and $1,000,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $600,000 $700,000 $1,000,000 Variable cost: Total variable cost $ $ Fixed cost: $ $ Total fixed cost Total selling and administrative expensesDirect materials purchases budget Tobin's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for November: Units 12" Pizza 16" Pizza Budgeted production volume 65,000 45,000 There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows: 12" Pizza 16" Pizza Direct materials: Dough 0.55 lb. per unit 0.80 lbs. per unit Tomato 0.25 0.40 Cheese 0.70 1.20 In addition, Tobin's has determined the following information about each material: Dough Tomato Cheese Estimated inventory, November 1 2,700 lbs. 1,200 lbs. 2,900 lbs. Desired inventory, November 30 2,100 lbs. 1,200 lbs. 3,000 lbs. Price per pound 50.70 $0.80 $1.05 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. X Open spreadsheet Prepare November's direct materials purchases budget for Tobin's Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your final answers to the nearest dollar. Tobin's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending November 30 Dough Tomato Cheese Total Units required for production: 12" pizza 16" pizza Total units available Total units to be purchased Unit price X x $ Total direct materials to be purchased $ $
