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 pla 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: $7,940 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 i Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) Line Item Description Estimated cash receipts from: 110 Total cash receipts Less estimated cash payments for: 270 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 4,300 380 220 500 980 September October November December DO
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 pla 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: $7,940 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 i Pay apartment deposit on September 2 (to be returned December 15) Part-time job earnings each month (net of taxes) Line Item Description Estimated cash receipts from: 110 Total cash receipts Less estimated cash payments for: 270 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 4,300 380 220 500 980 September October November December DO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Less estimated cash payments for:
Total cash payments
Cash increase (decrease)
Cash balance at end of month
E
b. Are the four monthly budgets that are presented prepared as static budgets or flexuble budgets?
c. What are the budget implications for Craig Kovar?
Craig can see that his present plan
sufficient cash. If 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.
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:
$7,940
110
270.
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)
Line Item Description
Estimated cash receipts from:
4,300
Total cash receipts
Less estimated cash payments for:
380
220
500
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
980
September October November December
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