At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October,

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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:
Question Content Area
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.
Additional entertainmentFoodPart-time jobRentTuitionPart-time
job
Additional entertainmentDepositFoodRentTuitionDeposit
CashInsuranceMovie ticketsPart-time jobSeason football
ticketsSeason football tickets
Additional entertainmentCashInsuranceMovie ticketsPart-time
jobAdditional entertainment
CashInsuranceMovie ticketsPart-time jobTuitionTuition
CashInsuranceMovie ticketsPart-time jobRentRent
CashFoodInsuranceMovie ticketsPart-time jobFood
DepositInsuranceMovie ticketsPart-time jobPrepaid
rentDeposit
Less cash balance at beginning of monthPlus cash balance at
beginning of monthPlus cash balance at beginning of month
Feedback Area
Feedback
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?
Question Content Area
b. Are the four monthly budgets that are
presented prepared as static budgets or flexible
budgets?
StaticFlexibleStatic
c. What are the budget implications for
Craig Kovar?
Craig can see that his present plan
will providewill not providewill not provide
sufficient cash. If Craig did not budget but went ahead
with the original plan, he would be $fill in the blank
616d65037fedf8f_3
overshortshort
at the end of December, with no time left to adjust.