Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 1 0 1 ,
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Question:
Bombs Away Video Games Corporation has forecasted the following monthly sales:
January $ July $
February August
March September
April October
May November
June December
Total annual sales $
Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $ per unit and costs $ per unit to produce. A level production policy is followed. Each month's production is equal to annual sales in units divided by
Of each month's sales, percent are for cash and percent are on account. All accounts receivable are collected in the month after the sale is made.
Construct a monthly production and inventory schedule in units. Beginning inventory in January is units.
Note: Input all your answers as positive numbers.
Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $
Prepare a cash payments schedule for January through December. The production costs of $ per unit are paid for in the month in which they occur. Other cash payments, besides those for production costs, are $ per month.
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 $ which is also the minimum desired.
Note: Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter wherever required.
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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