Question

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)	$6,470
Purchase season football tickets in September	90
Additional entertainment for each month	220
Pay fall semester tuition in September	3,500
Pay rent at the beginning of each month	310
Pay for food each month	180
Pay apartment deposit on September 2 (to be returned December 15)	400
Part-time job earnings each month (net of taxes)	800

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
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	$	$	$	$

Answer 1

a	Craig Kovar Cash Budget For the Four Months Ending December 31
		September	October	November	December
	Estimated cash receipts from:
	Part-time job	800	800	800	800
	Deposit	0	0	0	400
	Total cash receipts (A)	800	800	800	1200
	Less estimated cash payments for:
	Season football tickets	90	0	0	0
	Additional entertainment	220	220	220	220
	Tuition	3500	0	0	0
	Rent	310	310	310	310
	Food	180	180	180	180
	Deposit	400	0	0	0
	Total cash payments   (B)	4700	710	710	710
	Cash increase (decrease)   (A-B)	-3900	90	90	490
	Plus cash balance at beginning of month	6470	2570 (6470-3900)	2660 (2570+90)	2750 (2660+90)
	Cash balance at end of month	2570	2660	2750	3240
	minimum cash balance (Spring season school fee)	3500	3500	3500	3500
	Excess or deiciency	-930	-840	-750	-260