Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning-of-period balances: Cash: $18,900 Accounts Receivable: $75,600 Raw Materials Inventory: $22,400 Work in Process Inventory: $84,000 Finished Goods Inventory: $33,600 Equipment (historical value): $672,000 Accumulated Depreciation: $403,200 Accounts Payable: $37,800 Estimates for end-of-period balances: Accounts Receivable: $94,500 Raw Materials Inventory: $14,000 Work in Process Inventory: $70,000 Finished Goods Inventory: $4 0,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,12 5 units, at an average sales price of $112 per unit Purchases of Direct Materials: $62,720 Direct Labor Wages: $105,000 Manufacturing Overhead: $35,000 Selling and Administrative Expenses: $58,800 All sales are on account. Only raw materials are purchased on account. The company has no debt aside from current liabilities. Forest Trails has planned to purchase new equipment worth $35,000, and to sell equipment for $11,200 (Original purchase price $21,000, accumulated depreciation $14,000) to help finance the purchase. What is the budgeted level of Cash Flow from Operating Activities? Select one: a. None of these options are correct. b. $102,480 positive cash flow c. $82,180 positive cash flow d. $88,480 positive cash flow e. $100,800 positive cash flow
Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning-of-period balances: Cash: $18,900 Accounts Receivable: $75,600 Raw Materials Inventory: $22,400 Work in Process Inventory: $84,000 Finished Goods Inventory: $33,600 Equipment (historical value): $672,000 Accumulated Depreciation: $403,200 Accounts Payable: $37,800 Estimates for end-of-period balances: Accounts Receivable: $94,500 Raw Materials Inventory: $14,000 Work in Process Inventory: $70,000 Finished Goods Inventory: $4 0,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,12 5 units, at an average sales price of $112 per unit Purchases of Direct Materials: $62,720 Direct Labor Wages: $105,000 Manufacturing Overhead: $35,000 Selling and Administrative Expenses: $58,800 All sales are on account. Only raw materials are purchased on account. The company has no debt aside from current liabilities. Forest Trails has planned to purchase new equipment worth $35,000, and to sell equipment for $11,200 (Original purchase price $21,000, accumulated depreciation $14,000) to help finance the purchase. What is the budgeted level of Cash Flow from Operating Activities? Select one: a. None of these options are correct. b. $102,480 positive cash flow c. $82,180 positive cash flow d. $88,480 positive cash flow e. $100,800 positive cash flow
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 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...
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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.
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Transcribed Image Text:Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following
data: Beginning-of-period balances: Cash: $18,900 Accounts Receivable: $75,600 Raw Materials Inventory: $22,400
Work in Process Inventory: $84,000 Finished Goods Inventory: $33,600 Equipment (historical value): $672,000
Accumulated Depreciation: $403,200 Accounts Payable: $37,800 Estimates for end-of-period balances: Accounts
Receivable: $94,500 Raw Materials Inventory: $14,000 Work in Process Inventory: $70,000 Finished Goods Inventory: $4
0,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,12
5 units, at an average sales price of $112 per unit Purchases of Direct Materials: $62,720 Direct Labor Wages: $105,000
Manufacturing Overhead: $35,000 Selling and Administrative Expenses: $58,800 All sales are on account. Only raw
materials are purchased on account. The company has no debt aside from current liabilities. Forest Trails has planned to
purchase new equipment worth $35,000, and to sell equipment for $11,200 (Original purchase price $21,000,
accumulated depreciation $14,000) to help finance the purchase. What is the budgeted level of Cash Flow from
Operating Activities? Select one: a. None of these options are correct. b. $102,480 positive cash flow c. $82,180 positive
cash flow d. $88,480 positive cash flow e. $100,800 positive cash flow
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