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 c December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: $6,650 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) 90 Line Item Description Estimated cash receipts from: 230 3,600 320 180 500 820 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 September October November December
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 c December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: $6,650 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) 90 Line Item Description Estimated cash receipts from: 230 3,600 320 180 500 820 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 September October November December
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 1E: At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of...
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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
Transcribed Image Text:Cash Budget
For the Four Months Ending December 31
Line Item Description
Estimated cash receipts from:
Total cash receipts
Less estimated cash payments for:
Tetal cash payments
Cash increase (decrease)
Cash balance at end of month
September October November 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?
Craig can see that his present plan
end of December, with no time left to adjust.
sufficient cash. If Craig did not budget but went ahead with the original plan, he would be s
at the
Transcribed Image Text: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:
$6,650
Cash balance, September 1 (from a summer job)
Purchase season football tickets in September
90
Additional entertainment for each month
230
Pay fall semester tuition in September
3,600
Pay rent at the beginning of each month
320
Pay for food each month
180
Pay apartment deposit on September 2 (to be returned December 15)
500
Part-time job earnings each month (net of taxes)
820
a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outfiows, 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:
Total cash recei
Less estimated cash payments for
September October November December
000
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