Bombs Away Video Games Corporation has forecasted the following monthly sales:

January$109,000

July$54,000

February102,000

August54,000

March34,000

September64,000

April34,000

October94,000

May29,000

November114,000

June44,000

December132,000

Total annual sales = $864,000

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 monthly production and inventory schedule in units. Beginning inventory in January is 34,000 units.

b.Construct monthly schedule of cash receipts. Sales in December before the planning year are $100,000.

c.

construct 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.

d.

construct monthly cash budget for January through December using the cash receipts schedule from part

band the cash payments schedule from partc. The beginning cash balance is $5,000, which is also the minimum desired.(Negative amounts should be indicated by a minus sign.)