EX $8-1$ Personal budget

a$.$ December $31$ cash balance, $$3,490$

EXCEL ONLINE

SHOW ME HOW

Obj. $2,5$

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............................ Pay for food each month $...........................................$ Pay apartment deposit on September $2($to be returned December $15)....$ Part$-$time job earnings each month $($net of taxes$)....................$

$$9,250160250$

$4,800600550600$

$1,200$

a$.$ Prepare a cash budget for September, October, November, and December. 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?