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)	$8,400
Purchase season football tickets in September	200
Additional entertainment for each month	310
Pay fall semester tuition in September	4,400
Pay rent at the beginning of each month	750
Pay for food each month	690
Pay apartment deposit on September 2 (to be returned December 15)	750
Part-time job earnings each month (net of taxes)	1,500

Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

Craig Kovar
Cash Budget
For the Four Months Ending December 31
	September		October		November		December
Estimated cash receipts from:
		$		$		$		$
Total cash receipts		$		$		$		$
Less estimated cash payments for:
		$
				$		$		$
Total cash payments		$		$		$		$
Cash increase (decrease)		$		$		$		$
Cash balance at end of month		$		$		$		$

Answer 1

• Cash Budget, as asked

	September	October	November	December
Estimated cash receipts from:
Part-time job	$1,500	$1,500	$1,500	$1,500
Deposit				$750
Total cash receipts	$1,500	$1,500	$1,500	$2,250
Less estimated cash payments for:
Season football tickets	$200
Additional entertainment	$310	$310	$310	$310
Tuition	$4,400
Rent	$750	$750	$750	$750
Food	$690	$690	$690	$690
Deposit	$750
Total cash payments	$7,100	$1,750	$1,750	$1,750
Cash increase (decrease)	($5,600)	($250)	($250)	$500
Plus cash balance at beginning of month	$8,400	$2,800	$2,550	$2,300
Cash balance at the end of the month	$2,800	$2,550	$2,300	$2,800