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Bombs Away Video Games Corporation has forecasted the following monthly sales: $ 120,000 July 113,000 August 45,000 September 45,000 October 40,000 November 55,000 December Tobal

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Bombs Away Video Games Corporation has forecasted the following monthly sales: $ 120,000 July 113,000 August 45,000 September 45,000 October 40,000 November 55,000 December Tobal annual sales - 5990,000 143.000 Bombs Away Video Games sens the popular Strafe and capture video game. It sells for $5 per unit and costs $2 per un 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, 20 percent are for cash and 80 percent are on account. Al 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 45.000 units Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production - Sales Ending Inventory 45.000 Trash 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 February March April January May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts 0 $ $ 0 $ Bombs Away Video Games Corporation Cash Receipts Schedule August September October July November December Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 0 $ 0 $ 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 $65,000 per month Bombs Away Video Games Corporation Cash Payments Schedule February March April January Production cost Other cash payments Total cash payments Bombs Away Video Games Corporation Cash Payments Schedule August September October November December d. Prepare a monthly cash budget for January through December using the cash minimum desired (Negative amounts should be indicated by us sign) ces schedule from part and the cash payments schedule from parte the begin s balance is $5.000, which is one Bombs Away Video Games Corporation Cash Budget February April January May Beginning cash Bombs Away Video Games Corporation Cash Budget August September October Beginning cash

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