9 Bombs Away Video Games Corporation has forecasted the following monthly sales. ts eBook Hint Print January February $115,000 July $ 60,000 108,000 August 60,000 March 40,000 September April 40,000 October 35,000 November 70,000 100,000 120,000 138,000 May June 50,000 December Total annual sales - $936,000 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, 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 40,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Inventory Production January February 40,000 March April May June July August September October November December Sales Ending Inventory 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 Sales January February March April May June Cash receipts Cash sales Prior month's credit sales Total cash receipts $ OS $ 0 $ 0 $ 0 $ Sales July Bombs Away Video Games Corporation Cash Receipts Schedule August September October November December Cash receipts Cash sales Prior month's credit sales Total cash receipts $ 0 $ $ $ 0 $ $ c. Prepare 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 $60,000 per month. January Bombs Away Video Games Corporation Cash Payments Schedule. February March April May June Production cost Other cash payments Total cash payments S 0 $ 0 $ 0 S 0 S 0 $ 0 July Bombs Away Video Games Corporation Cash Payments Schedule August September October November December Production cost Other cash payments Total cash payments $ 0 $ $ 0 $ 0 $ 0 $ d. Prepare a monthly cash budget for January through December using the cash receipts schedule from part b and 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.) Beginning cash Net cash flow Cumulative cash balance. Monthly loan or (repayment) Ending cash balance Cumulative loan balance: Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance. Cumulative loan balance. January July Bombs Away Video Games Corporation Cash Budget February March Bombs Away Video Games Corporation Cash Budget August September April May June October November December