Bell expects to produce 1,800 units in january and 2,155 units in february. the company budgets 3 pounds per unit of direct materials at a cost of $10 per pound. indirect materials are insignificant and not considered for budgeting purposes. the balance in the raw materials inventory account (all direct materials) on january 1 is 4,950 pounds. bell desires the ending balance in raw materials inventory to be 20% of the next month’s direct materials needed for production. desired ending balance for february is 4,860 pounds. prepare bell’s direct materials budget for january and february.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?