Personal budget At the beginning of the school year, Craig Kovar decided to prepare a cash...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month $6,900 90 240 3,700 340 190 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 860 Pay for food each month 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. Line Item Description Craig Kovar Cash Budget For the Four Months Ending December 31 Estimated cash receipts from: Part-time job Deposit Total cash receipts Less estimated cash payments for: Season football tickets Additional entertainment September October November December Tuition Rent Food Deposit Total cash payments Cash increase (decrease) Plus cash balance at beginning of month Cash balance at end of month Feedback Check My Work 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. 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) Purchase season football tickets in September Additional entertainment for each month Pay fall semester tuition in September Pay rent at the beginning of each month $6,900 90 240 3,700 340 190 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 860 Pay for food each month 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. Line Item Description Craig Kovar Cash Budget For the Four Months Ending December 31 Estimated cash receipts from: Part-time job Deposit Total cash receipts Less estimated cash payments for: Season football tickets Additional entertainment September October November December Tuition Rent Food Deposit Total cash payments Cash increase (decrease) Plus cash balance at beginning of month Cash balance at end of month Feedback Check My Work 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.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
7: What would happen if someone ran this not as a paired t-test, but as a one-sided, two-sample t-test? Question 7 options: They would get a p-value of > 0.05, and would conclude the test not...
-
At the end of the fiscal year, a ci ty must make a $10,000 payment on its bonds payable account. Funds will be transferred from the general fund to the debt service fund for the amount. The funds...
-
**Accounting's Crucial Role in the International Market" In the globalized business landscape, accounting plays a pivotal role in facilitating transparency, reliability, and comparability of...
-
For this final discussion board, please reflect back on your accounting courses and answer the following questions: 1. Which course in the accounting program did you find to be the most difficult? 2....
-
List some common cash inflows from capital investments.
-
A man is delivering a cupboard to a house. a. The man trolls the cupboard at a steady speed from the lorry to the house. The friction force in the wheels is 40 N. State the force with which the man...
-
Why do \(\mathrm{H}_{\mathrm{OG}}\) and \(\mathrm{H}_{\mathrm{OL}}\) vary more than \(\mathrm{H}_{\mathrm{L}}\) and \(\mathrm{H}_{\mathrm{G}}\), which often vary by about \(10 \%\) ?
-
Refer to the list of income statement items in Problem 2-6. Assume that Shaw Corporation classifies all operating expenses into two categories: (1) Selling and (2) General and administrative....
-
They mention that inventories contribute to growth. This is in contrast to back on Q1 2023 where the WSJ reported that "... companies drawing down their inventories weighed on growth." For another...
-
Suppose a representative worker in the economy has preferences over consumption and leisure that can be represented by the following utility function: ???? = ln(????) + ln(????) ,where ???? is...
-
Describe the impact of catalyst deactivation mechanisms such as poisoning, fouling, and sintering on the longevity and efficiency of catalytic processes, and suggest potential strategies for...
-
Victims sometimes have unrealistic expectations of the criminal justice system and become even more dissatisfied with the system when their recommendations are not accepted. If you were a victim...
-
Calculate the effective interest on a loan of IDR 10,000,000 to be repaid in 12 monthly installments of IDR 1 million starting next month?
-
Treaty Congressional Act, or Court Case from column A & B, and briefly describe how it impacts tribal government. 1 Introduction and overview Ft. Laramie Treaty of 1851 Ft. Laramie Treaty of 1868 ...
-
In 1996, Rodney Roberts was arrested for assault. After being taken to the police station in Newark, New Jersey, Rodney believed he would be fingerprinted and released. However, after providing...
-
How feasible is digital inclusiveness in a remote area plagued by armed conflict where access is denied by armed groups to stakeholders for any project whatsoever and also where basic services like...
-
Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.
-
Steven Myer and William Riggs are partners in an existing business. Each partner has equity of \($30,000.00.\) On October 1 of the current year, the two partners agree to admit Sandra DeVito as a...
-
Stanley Neal and Helen Jobe each have equity of $40,000.00 in an existing partnership. The partners share equally in all changes in equity. On August 1 of the current year, the existing partners...
-
Susan Wang and Lelah Burch are partners in an existing business. Each partner has $60,000.00 equity in the partnership. Partners share equally in all changes in equity. On April 1 of the current...
Study smarter with the SolutionInn App