Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March April May June $103,000 96,000 July August 28,000 September 28,000 October 23,000 November $ 48,000 48,000 58,000 88,000 108,000 126,000 38,000 December Total annual sales = $792,000 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 28,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units January February March April May June July August September October November December Beginning Inventory 28,000 Production Ending Sales Inventory b. Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $100,000. January Bombs Away Video Games Corporation Cash Receipts Schedule February March April May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts July Bombs Away Video Games Corporation Cash Receipts Schedule August September October November December 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 $48,000 per month. January Production cost Bombs Away Video Games Corporation Cash Payments Schedule February March April May June cash payments, besides those for production costs, are $48,000 per month. Bombs Away Video Games Corporation Cash Payments Schedule February March April May June January Production cost Other cash payments Total cash payments July 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 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 Beginning cash Net cash flow Cumulative cash balance January Cash Budget February March April May June 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 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 Cash Budget February March April May June Bombs Away Video Games Corporation Cash Budget August September October November December