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Bombs Away Video Games Corporation has forecasted the following monthly sales: Bombs Away Video Games sells the popular Strafe and Capture video game. It sells

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Bombs Away Video Games Corporation has forecasted the following monthly sales: 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 pollicy 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 recelvable 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 25,000 units. Note: Input all your answers as positive numbers. b. Prepare a monthly schedule of cash receipts. Sales in the December before the planning year are $100,000. 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 $45,000 per month. Note: Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter ' 0 ' wherever required. \begin{tabular}{|l|l|l|l|l|l|l|l|} \hline \multicolumn{5}{|c|}{ Bombs Away Video Games Corporation } \\ \hline & July & August & September & October & November & December \\ \hline Beginning cash & & & & & & \\ \hline Net cash flow & & & & & & \\ \hline Cumulative cash balance & & & & & & \\ \hline Monthly laan or (repayment) & & & & & \\ \hline Ending cash balance & & & & & \\ \hline Cumulative loan balance & & & & & & \\ \hline \end{tabular}

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