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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education