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: $ 40,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,125 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: $ 40,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,125 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
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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: $
40,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales:
3,125 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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