$109,000 102,000 34,000 34,000 July August September October $54,000 January February 54,000 March 64,000 April 94,000 114,000 November 29,000 44,000 Total sales $864,000 May December 132,000 June The firm sells its Last Spike video game for $5 per unit, and the cost to produce the game is $2 per unit. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12. Of each month's sales, 30 percent are for cash and 70 percent are on account. All accounts receivable are collected in the month after the sale is made. a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 34,000 units. (Note: To do part a you should work in terms of units of production and units of sales.) Front Page Video Games Corporation Production and inventory schedule in units Beginning inventory + 34,000 Ending inventory Production - Sales January February March April May June July August September October November December b. Prepare a monthly schedule of cash receipts. Sales in the December before the planning year were $100,000. Work part b using dollars Front Page Video Games Corporation February March April January May June S Sales Cash sales Prior mont sales Total cash receipts Front Page Video Games Corporation July November September October December August Sales Cash sales Prior month's sales Total cash receipts S S c. Determine a cash payments schedule for January through December. The production costs of $2 per unit are paid for in the month in which they occur. Other cash payments, besides those for production costs, are $54,000 per month. Front Page Video Games Corporation Constant production February March April January May June S S Production cost S S Other cash payments Total cash payments Front Page Video Games Corporation Constant production Septembe: July October December August S November Production cost Other cash payments Total cash payments d. Prepare a monthly cash budget for January through December. The beginning cash balance is $5,000, and that is also the minimum desired. (Do not leave any empty spaces; input be indicated by a minus sign.) 0 wherever it is required. Negative answers and amounts to be deducted should Front Page Video Games Corporation February March April January May June S S Net cash flow Beginning cash Cumulative cash balance Monthly loan or (repayment) Cumulative loan S S Ending cash balance S Front Page Video Games Corporation July September S December October November August S Net cash flow S Beginning cash Cumulative cash balance S S Monthly loan or (repayment) Cumulative loan Ending cash balance