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: $135,000Accounts Payable: $67,500Accumulated Factory Depreciation: $720,000Cash: $33,750 Estimates for end-of-period balances:Accounts Receivable: $168,750Accounts Payable: $45,000Accumulated Factory Depreciation: $740,000 Budgeted activity levels for the period:Sales: $625,000Purchases of Direct Materials: $112,000Direct Labor Wages: $187,500Manufacturing Overhead: $62,500Selling and Administrative Expenses: $105,000 Except for purchases of direct materials, all expenses are paid as incurred. What is the budgeted ending cash balance for the period? Select one: a. None of these options are correct. b. $223,000 c. $191,750 d. $175,500 e. $155,500
Valley Trails is preparing the
Beginning-of-period balances:
Accounts Receivable: $135,000
Accounts Payable: $67,500
Accumulated Factory Depreciation: $720,000
Cash: $33,750
Estimates for end-of-period balances:
Accounts Receivable: $168,750
Accounts Payable: $45,000
Accumulated Factory Depreciation: $740,000
Budgeted activity levels for the period:
Sales: $625,000
Purchases of Direct Materials: $112,000
Direct Labor Wages: $187,500
Manufacturing Overhead: $62,500
Selling and Administrative Expenses: $105,000
Except for purchases of direct materials, all expenses are paid as incurred.
What is the budgeted ending cash balance for the period?
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