Bombs Away Video Games Corporation has forecasted the following monthly sales January February March April May June $ 109,000 July 102,000 August 34,000 September 34,000 October 29,000 November 44,000 December Total annual sales $864,000 $54,000 54,000 64,000 94,000 114,000 132,000 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 34,000 units Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production Invento Ending -Sales Invento January 34,000 February March April May June Ul August September October November December 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 January February March May April June Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts Bombs Away Video Games Corporation Cash Receipts Schedule July August September October November December Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts 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 $54,000 per month Bombs Away Video Games Corporation Cash Payments Schedule January February March May April June Production cost Other cash payments Total cash payments Bombs Away Video Games Corporation Cash Payments Schedule July August September October November December Production cost Other cash payments Total cash payments 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.) Bombs Away Video Games Corporation Cash Budget January February March May April June Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation Cash Budget July August September October November December Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance