Bombs Away Video Games Corporation has forecasted the following monthly sales: July January February March April May June $112,000 $ 57,000 105,000 August 57,000 37,000 September 67,000 37,000 October 97,000 32,000 November 117,000 47,000 December 135,000 Total annual sales = $900,000 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 37,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production Sales Inventory 37,000 Ending Inventory January February March April May June July 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 February March January April May June Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts Bombs Away Video Games Corporation Cash Receipts Schedule August September July 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 $57,000 per month Bombs Away Video Games Corporation Cash Payments Schedule February March January April May June Production cost Other cash payments Total cash payments Bombs Away Video Games Corporation has forecasted the following monthly sales: July January February March April May June $112,000 $ 57,000 105,000 August 57,000 37,000 September 67,000 37,000 October 97,000 32,000 November 117,000 47,000 December 135,000 Total annual sales = $900,000 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 37,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production Sales Inventory 37,000 Ending Inventory January February March April May June July 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 February March January April May June Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts Bombs Away Video Games Corporation Cash Receipts Schedule August September July 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 $57,000 per month Bombs Away Video Games Corporation Cash Payments Schedule February March January April May June Production cost Other cash payments Total cash payments