t 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$)$ $$10,900$

Purchase season football tickets in September $150$

Additional entertainment for each month $240$

Pay fall semester tuition in September $5,700$

Pay rent at the beginning of each month $580$

Pay for food each month $530$

Pay apartment deposit on September $2($to be returned December $15)580$

Part$-$time job earnings each month $($net of taxes$)1,150$

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:

Part$-$time job

$fill in the blank $3$

$fill in the blank $4$

$fill in the blank $5$

$fill in the blank $6$

Deposit

fill in the blank $8$

Total cash receipts $fill in the blank $9$

$fill in the blank $10$

$fill in the blank $11$

$fill in the blank $12$

Less estimated cash payments for:

Season football tickets

$fill in the blank $14$

Additional entertainment

fill in the blank $16$

$fill in the blank $17$

$fill in the blank $18$

$fill in the blank $19$

Tuition

fill in the blank $21$

Rent

fill in the blank $23$

fill in the blank $24$

fill in the blank $25$

fill in the blank $26$

Food

fill in the blank $28$

fill in the blank $29$

fill in the blank $30$

fill in the blank $31$

Deposit

fill in the blank $33$

Total cash payments $fill in the blank $34$

$fill in the blank $35$

$fill in the blank $36$

$fill in the blank $37$

Cash increase $($decrease$)$ $fill in the blank $38$

$fill in the blank $39$

$fill in the blank $40$

$fill in the blank $41$

Plus cash balance at beginning of month

fill in the blank $43$

fill in the blank $44$

fill in the blank $45$

fill in the blank $46$

Cash balance at end of month $fill in the blank $47$

$fill in the blank $48$

$fill in the blank $49$

$fill in the blank $50$

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 $53$

short

at the end of December, with no time left to adjust.