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 $8,710 120 300 4,700 420 240 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,080 Pay rent at the beginning of each month 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. Craig Kovar Cash Budget For the Four Months Ending December 31 Line Item Description Estimated cash receipts from: Part-time job Deposit Total cash receipts Less estimated cash payments for: Season football tickets Additional entertainment Tuition Rent Food Deposit Total cash payments Cash Increase (decrease) Plus cash balance at beginning of month Cash balance at end of month September October November December Feedback Check My Work Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? 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 left to adjust. 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 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 $8,710 120 300 4,700 420 240 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,080 Pay rent at the beginning of each month 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. Craig Kovar Cash Budget For the Four Months Ending December 31 Line Item Description Estimated cash receipts from: Part-time job Deposit Total cash receipts Less estimated cash payments for: Season football tickets Additional entertainment Tuition Rent Food Deposit Total cash payments Cash Increase (decrease) Plus cash balance at beginning of month Cash balance at end of month September October November December Feedback Check My Work Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? 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 left to adjust. 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
Expert Answer:
Answer rating: 100% (QA)
a Here is the prepared cash budget for Craig Kovar Craig Kovar Cash Budget For the Four Months Endi... View the full answer
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
Posted Date:
Students also viewed these accounting questions
-
The case study is Implementing LEAN Operations at Caesars Casinos. You can get the free PDF file by searching on Google. PDFcoffee should have the case study for free. Also, you can upload the chart...
-
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...
-
Prove that: [A (B C)] + [B (C A)] + [C (A B)] = 0. Under what conditions does A (B C) = (A B) C?
-
Steam expands in a turbine from 4 MPa and 500C to 0.5 MPa and 250C at a rate of 1350 kg/h. Heat is lost from the turbine at a rate of 25 kJ/s during the process. The power output of the turbine is...
-
Traveling with an initial speed v 0 a car accelerates at rate a along a straight road. How long will it take to reach a speed v f ? Also, through what distance does the car travel during this time?...
-
How are the entries in the pro forma statement obtained?
-
1. What approaches would you recommend the Blue Ocean Strategy team use to identify new market space for the conglomerate? 2. How realistic is it for Baxter to delegate the task of finding a Blue...
-
Discuss creative analogies comparing network data packets to normal paper mail or other common communication media.
-
What are the main limitations of financial statements as a source of information for general-purpose users of financial statements?
-
In July 20X2, Ross donated $200,000 cash to a church with the stipulation that the revenue generated from this gift be paid to him during his lifetime. The conditions of this donation are that after...
-
Jim Watanabe, assistant director of IT for Petrie Electronics, and the manager of the No Customer Escapes customer loyalty system project, was walking down the hall from his office to the cafeteria....
-
For what reasons might a company make a product rather than buy it from a supplier?
-
Roberts Foundation received a nonexpendable endowment of $500,000 in 20X3 from Multi Enterprise and invested it in publicly traded securities. Multi did not specify how gains and losses from...
-
What is it called when a company decides the spatial arrangement of production processes within production facilities?
-
What is the role of education on culture and economic development of a country?
-
Determine whether the lines are parallel, perpendicular, or neither. 2x + 3y = -12, 2y - 3x = 8
-
A tax auditor reviewing a tax return looks for several kinds of problems, including these two: (1) mistakes made in entering or calculating numbers on the tax return and (2) places where the taxpayer...
-
When recording the weight of a watermelon, a supermarket clerk writes the wrong number. Is this type of error a random error or a systematic error? Explain.
-
There are 24,627 species of fish on Earth. Decide whether the statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain clearly.
Study smarter with the SolutionInn App