80.2K

Verified Solution

Link Copied!

Personal Budget At the beginning of the school year Cralo 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) $7.910 Purchase season football tickets in September 110 Additional entertainment for each month 270 Pay Pall semester tuition in September 4,300 Pay rent at the beginning of each month 390 Pay for food each month 220 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 980 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 QOD Total cash receipts Less estimated cash payments for September October November December Estimated cash receipts from Total cash receipts Less estimated cash payments for O QU10000 [ 0 II QUOD [ I ODIO 1 dl D OI ON 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 budget? What are the budget implications for Craig Kovar Craig can see that his present plan sufficient cash at 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

Answer & Explanation Solved by verified expert

See Answer