Question

Personal budget

Answer 1

Answer:

Craig Kovar

Cash Budget

                              September    October     November      December

Beginning balance   $8,150        $3,150         $2,980            $2,810

Wages                         1,000          1,000            1,000              1,000

Deposit refund                                                                            500

Total cash receipts  $9,150       $4,150          $3,980           $4,310

Payments:

Season football tickets 130

Entertainment               210            210                210                210

Semester tuition       4,200                                                    4,200

Rent                              500          500               500               500

Food                             460          460               460                460

Apartment deposit      500

Total payments      $6,000       $1,170            $1,170          $5,370

Cash balance          $3,150     $2,980           $2,810         ($1,060)

b. Craig needs to borrow $1,060 in December to meet up with expenses.  Alternatively, he will need to increase his monthly earnings by more than $265.  He can also reduce his monthly expenses by $265 at least, especially from additional entertainment and food.  He should also start considering how he could survive January without additional income.

Explanation:

a) Data and Calculations:

Receipts:

Cash balance, September 1 (from a summer job) $8,150

Part-time job earnings each month (net of taxes) 1,000

Apartment deposit returned in December $500

Payments:

Season football tickets in September 130

Additional entertainment for each month 210

Semester tuition in September 4,200

Rent at the beginning of each month 500

Food each month 460

Apartment deposit on September 2  500