Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning-of-period balances: Cash: $13,500 Accounts Receivable: $54,000 Raw Materials Inventory: $16,000 Work in Process Inventory: $60,000 Finished Goods Inventory: $24,000 Equipment (historical value): $480,000 Accumulated Depreciation: $288,000 Accounts Payable: $27,000 Estimates for end-of-period balances: Accounts Receivable: $67,500 Raw Materials Inventory: $10,000 Work in Process Inventory: $50,000 Finished Goods Inventory: $29,000 Accumulated Depreciation: $296,000 Accounts Payable: $18,000 Budgeted activity levels for the period: Sales: 3,125 units, at an average sales price of $80/unit Purchases of Direct Materials: $44,800 Direct Labor Wages: $75,000 Manufacturing Overhead: $25,000 Selling and Administrative Expenses: $42,000 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 $25,000, and to sell equipment for $8,000 (Original purchase price $15,000, accumulated depreciation $10,000) to help finance the purchase. What is the budgeted level of Cash Flow from Operating Activities? Select one: a. $58,700 positive cash flow b. $72,000 positive cash flow c. $63,200 positive cash flow d. $73,200 positive cash flow e. None of the above
Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data:
Beginning-of-period balances:
Cash: $13,500
Raw Materials Inventory: $16,000
Work in Process Inventory: $60,000
Finished Goods Inventory: $24,000
Equipment (historical value): $480,000
Accounts Payable: $27,000
Estimates for end-of-period balances:
Accounts Receivable: $67,500
Raw Materials Inventory: $10,000
Work in Process Inventory: $50,000
Finished Goods Inventory: $29,000
Accumulated Depreciation: $296,000
Accounts Payable: $18,000
Budgeted activity levels for the period:
Sales: 3,125 units, at an average sales price of $80/unit
Purchases of Direct Materials: $44,800
Direct Labor Wages: $75,000
Manufacturing Overhead: $25,000
Selling and Administrative Expenses: $42,000
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 $25,000, and to sell equipment for $8,000 (Original purchase price $15,000, accumulated depreciation $10,000) to help finance the purchase.
What is the budgeted level of
Select one:
a. $58,700 positive cash flow
b. $72,000 positive cash flow
c. $63,200 positive cash flow
d. $73,200 positive cash flow
e. None of the above
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