a-d are fully correct. please just answer d & e

Problem 6-22 Level production and related financing effects (L06-3) Esquire Products Inc. expects the following monthly sales: January February March April May June $ 44,000 July 35,000 August 28,000 September 30,000 October 24,000 November 22,000 December Total sales - $456,000 $ 38,000 42,000 45,000 50,000 58.000 40,000 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. d. Construct a cash budget for January through December using the cash receipts schedule from part band the cash payments schedule from part c. The beginning cash balance is $3,000, which is also the minimum desired. (Negative amounts should be indicated by a minus sign.) Esquire Products Inc. Cash Budget February March 6,800 $ 15,500 $ May June $ January 3,000 $ (15,067) April 24.700 $ 29,500 $ 36,100 Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance 5 $1,600 Esquire Products Inc. Cash Budget August September 30,700 s 49,300 $ July 39,300 $ October November December 61.000 $ 74,000 $ 89.200 $ Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance e. Determine total current assets for each month. Include cash accounts receivable, and inventory. The accounts receivable for a given month is equal to 60 percent of that month's sales. Inventory is equal to ending inventory (part a) times the cost of $1 per unit. Total Current Assets Inventory 30,000 Esquire Products Inc. Assets Cash Accounts Receivable 3,600 $ 29,400 $ 18.000 24,200 27,000 28,600 $ January February March April May June July August September October November December Problem 6-22 Level production and related financing effects (L06-3) Esquire Products Inc. expects the following monthly sales: January February March April May June $ 44,000 July 35,000 August 28,000 September 30,000 October 24,000 November 22,000 December Total sales - $456,000 $ 38,000 42,000 45,000 50,000 58.000 40,000 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. 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 28,000 units. + Sales January February March April May June July August September October November December Esquire Products Inc. Production and Inventory Schedule in Units Beginning Inventory Production 28,000 19,000 22,000 25,000 19.000 17,500 26,500 19,000 14.000 31,500 19,000 15,000 35,500 19,000 12,000 42.500 19,000 11,000 50,500 19,000 19,000 50,500 19.000 21,000 48,500 19,000 22,500 45,000 19,000 25,000 39,000 19,000 29,000 29,000 19.000 20,000 Ending Inventory 25,000 26,500 31,500 35,500 42,500 50,500 50,500 48,500 45,000 39,000 29,000 28,000 b. Prepare a cash receipts schedule for January through December. Assume that dollar sales in the prior December were $20,000. Esquire Products Inc. Cash Receipts Schedule February March 35,000 $ 28,000 $ January 44,000 $ $ April 30,000 $ May 24,000 $ June 22,000 Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 17.600 $ 12,000 29,600 $ 14.00 $ 26,400 40,400 $ 11,200 $ 21,000 32,200 $ 12,000 $ 16,800 28,800 $ 9,600 3 18,000 27,600 $ 8,800 14.400 23,200 $ Esquire Products Inc. Cash Receipts Schedule August September 42,000 $ 45,000 $ July 38.000 October November December 50,000 $ 58,000 $ 40,000 $ Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 15,200 $ 13,200 28,400 $ 16,800 $ 22.800 39,600 $ 18,000 $ 25.200 43,200 $ 20,000 $ 27,000 47,000 $ 23,200 $ 30,000 53,200 $ 16,000 34,800 50,800 $ c. Prepare a cash payments schedule for January through December. The production costs ($1 per unit produced) are paid for in the month in which they occur. Other cash payments (besides those for production costs) are $9,000 per month. Esquire Products Inc. Cash Pay haents Schedule Constant production January February March 19.000 $ 19,000 $ 19,000 $ 9,000 9,000 9.000 28,000 $ 28,000 $ 28,000 $ $ Production cost Other cash payments Total cash payments April 19,000 $ 9,000 28.000 $ May 19,000 $ 9,000 28,000 $ June 19,000 9,000 28,000 $ Esquire Products Inc. Cash Payments Schedule Constant production July August September October November December 19,000 $ 19,000 $ 19,000 $ 19,000 $ 19,000 $ 19,000 9,000 9,000 9,000 9,000 9,000 9,000 28,000 $ 28,000 $ 28,000 $ 28,000 $ 28,000 $ 28,000 $ Production cost Other cash payments Total cash payments $ d. Construct a cash budget for January through December using the cash receipts schedule from part band the cash payments schedule from part c. The beginning cash balance is $3,000, which is also the minimum desired. (Negative amounts should be indicated by a minus sign.) Esquire Products Inc. Cash Budget February March 6,800 $ 15,500 $ May June $ January 3,000 $ (15,067) April 24.700 $ 29,500 $ 36,100 Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance 5 $1,600 Esquire Products Inc. Cash Budget August September 30,700 s 49,300 $ July 39,300 $ October November December 61.000 $ 74,000 $ 89.200 $ Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance e. Determine total current assets for each month. Include cash accounts receivable, and inventory. The accounts receivable for a given month is equal to 60 percent of that month's sales. Inventory is equal to ending inventory (part a) times the cost of $1 per unit. Total Current Assets Inventory 30,000 Esquire Products Inc. Assets Cash Accounts Receivable 3,600 $ 29,400 $ 18.000 24,200 27,000 28,600 $ January February March April May June July August September October November December