6-22 Level production and related financing effects [LO3] Esquire Products, Inc., expects the following monthly sales: January $ 28,000 July $ 22,000 February 19,000 August 26,000 March 12,000 September 29,000 April 14,000 October 34,000 May 8,000 November 42,000 June 6,000 December 24,000 Total sales = $264,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire uses level production, and average monthly production is equal to annual production divided by 12. (a) Generate a monthly production and inventory schedule in units. Beginning inventory in January is 12,000 units. ESQUIRE PRODUCTS, INC. Production and inventory schedule in units Beginning inventory + Production