Below Is Budgeted Production and Sales Information for Flushing Company

question 105

Multiple Choice

Below is budgeted production and sales information for Flushing Company for the month of December: The unit selling price for product XXX is $5 and for product ZZZ is $15.
Budgeted sales for the month are:

• A) $3,180,000
• B) $5,820,000
• C) $1,800,000
• D) $8,500,000

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Definitions:

Direct Method

A method for creating a cash flow statement where actual cash flow information from operations is used rather than adjustments to net income.

Operating Cash Receipts

Cash received by a company from its core business operations.

Cash Flow

Indicates the total amount of money being transferred into and out of a business, particularly affecting its liquidity.

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and equipment.