$ 46,000 46,000 56,000 86,000 106.000 124,000 $ 101,000 94,000 26,000 26,000 21,000 36,000 December Total annual sales $768,000 January February March April May June July August September October November Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. 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, 40 percent are for cash and 60 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 26,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Inventory Ending Inventory Production Sales January February 26,000 March April May June July August August September October November December b. Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $100,000 Bombs Away Video Games Corporation Cash Receipts Schedule June May March April February January Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Bombs Away Video Games Corporation Cash Receipts Schedule December November October September August July Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts c. Prepare a cash payments schedule for January through December. The production costs of $2 per unit are paid for in the production costs, are $46,000 per month month in which they occur Other cash payments, besides those for Bombs Away Video Games Corporation Cash Payments Schedule June May April March February January Production cost Other cash payments Total cash payments Bombs Away Video Games Corporation Cash Payments Schedule December November October September August July Production cost Other cash payments Total cash payments d. Prepare a monthly cash budget for January through December using the cash recepts schedule from part b and the cash payments schedule from parte. The beginning cash balance is $5,000 which is also the minimum desired. (Negative amounts should be indicated by a minus sign.) Bombs Away Video Games Corporation Cash Budget June April May February March January Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation Cash Budget December November October September August July Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance