9.

Bombs Away Video Games Corporation has forecasted the following monthly sales: Bombe Auwy Vobo Games Corporation has forenasied the fotlowing monthiy salas: Bombs Away Video Games sells the popular Strafe and Capture video game, it sells for $5 per unit and costs $2 per unit to prodicoe. A tervet production policy is followod. Each month's production is equal to annual sales in units) divided by 12 Or each monthis salos, 20 percent are for cash and 80 percent are on account All accounts receivable are collected in the month atter the sake is made. a. Construct a monthly production and inventory schedule in units. Beginning inventory in danuary is 39.000 units. b. Prepare a monthly schedub of cash receipts. Sales in December before the planning year are $100,000. c. Prepare a canh paymonts schedule for January through December. The production costs of $2 per init are paid for in the month in which they occur. Osher eash payments, besides those for production costs, are 559,000 per month. d. Prepare a monthly cash budget for January through Docember uting the cash receipts schedule from part band the cash payments schedule from part c. The beginning cash balance is $5,000, which is also the minimum desired. (Negative amounts should be indicated by a minus sign.)