preparing the Cash Budget for the upcoming period, and is concerned about their ability to meet their financial obligations in the short term. Following is information relating to Valley's financial performance: Beginning-of-period balances: Accounts Receivable: $108,000 Accounts Payable: $54,000 Accumulated Factory Depreciation: $576,000 Cash: $27,000 Estimates for end-of-period balances: Accounts Receivable: $135,000 Accounts Payable: $36,000 Accumulated Factory Depreciation: $592,000 Budgeted activity levels for the period: Sales: $500,000 Purchases of Direct Materials: $89,600 Direct Labor Wages: $150,000 Manufacturing Overhead: $50,000 Selling and Administrative Expenses: $84,000 Except for purchases of direct materials, all expenses are paid as incurred. What is the budgeted ending cash balance for the period? Select one: O a. $178,400
preparing the Cash Budget for the upcoming period, and is concerned about their ability to meet their financial obligations in the short term. Following is information relating to Valley's financial performance: Beginning-of-period balances: Accounts Receivable: $108,000 Accounts Payable: $54,000 Accumulated Factory Depreciation: $576,000 Cash: $27,000 Estimates for end-of-period balances: Accounts Receivable: $135,000 Accounts Payable: $36,000 Accumulated Factory Depreciation: $592,000 Budgeted activity levels for the period: Sales: $500,000 Purchases of Direct Materials: $89,600 Direct Labor Wages: $150,000 Manufacturing Overhead: $50,000 Selling and Administrative Expenses: $84,000 Except for purchases of direct materials, all expenses are paid as incurred. What is the budgeted ending cash balance for the period? Select one: O a. $178,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:Budgeted activity levels for the period:
Sales: $500,000
Purchases of Direct Materials: $89,600
Direct Labor Wages: $150,000
Manufacturing Overhead: $50,000
Selling and Administrative Expenses: $84,000
Except for purchases of direct materials, all expenses are paid as incurred.
What is the budgeted ending cash balance for the period?
Select one:
O a. $178,400
O
b. $140,400
c. $153,400
d. None of these options are correct.
e. $124,400
O
Transcribed Image Text:Valley Trails is preparing the Cash Budget for the upcoming period, and is concerned about their ability to meet their financial obligations in the short term. Following is information
relating to Valley's financial performance:
Beginning-of-period balances:
Accounts Receivable: $108,000
Accounts Payable: $54,000
Accumulated Factory Depreciation: $576,000
Cash: $27,000
Estimates for end-of-period balances:
Accounts Receivable: $135,000
Accounts Payable: $36,000
Accumulated Factory Depreciation: $592,000
Budgeted activity levels for the period:
Sales: $500,000
Purchases of Direct Materials: $89,600
Direct Labor Wages: $150,000
Manufacturing Overhead: $50,000
Selling and Administrative Expenses: $84,000
Except for purchases of direct materials, all expenses are paid as incurred.
What is the budgeted ending cash balance for the period?
Select one:
O
O
O
a. $178,400
b. $140,400
$152 400
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