At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the
Question:
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 should provide enough cash on December 31 to pay for spring semester tuition, which is equal to fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job) | $8,750 |
Buy football season tickets in September | 170 |
Additional entertainment for each month | 270 |
Pay tuition for the fall semester in September | 4,600 |
Pay rent at the beginning of each month | 650 |
Pay for food every month | 600 |
Pay the deposit of the apartment on September 2 (to be returned on December 15) | 650 |
Part-time job earnings each month (net of taxes) | 1,300 |
to. Prepare a cash budget for September, October, November and December. Enter all amounts as positive values except the decrease in cash 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 | ps | ps | ps | ps | ||||||||||||||
Deposit | ||||||||||||||||||
Total cash inflows | ps | ps | ps | ps | ||||||||||||||
Less estimated cash payments for: | ||||||||||||||||||
football season tickets | ps | |||||||||||||||||
additional entertainment | ps | ps | ps | |||||||||||||||
Registration | ||||||||||||||||||
Rent | ||||||||||||||||||
Food | ||||||||||||||||||
Deposit | ||||||||||||||||||
Total cash payments | ps | ps | ps | ps | ||||||||||||||
Increase (decrease) in cash | ps | ps | ps | ps | ||||||||||||||
Plus cash balance at the beginning of the month | ||||||||||||||||||
Cash balance at the end of the month | ps | ps | ps | ps |
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 current plan will (will OR will not provide) enough cash. If Craig did not budget but went ahead with the original plan, he would have $________ (give or take) at the end of December, with no time to adjust.
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton