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Construct a monthly production and inventory schedule for January through December (in units). The firm is starting with 5,000 units of beginning inventory in January.
- Construct a monthly production and inventory schedule for January through December (in units). The firm is starting with 5,000 units of beginning inventory in January.
- Construct a cash receipt schedule for January through December (in dollars). Experience has shown that 20% of sales are collected in the month of the sale and 80% are collected in the month following the sale. Sales in December were $15,000.
- Construct a cash payment schedule January through December (in dollars). Production costs are paid for in the month in which they occur. Other cash payments, besides those for production costs, are $6,000 per month.
- Construct a cash budget for January through December (in dollars). The beginning cash balance is $1,000, which is also equal to their required monthly minimum balance. Funds are borrowed from the bank when shortages exist and repaid when there is a cash surplus.
- Calculate total current assets for SRC for January through December (in dollars).
- Will external financing be required for SRC in the coming year? If so, what is the total amount of short-term financing the firm will utilize?
- Which month is their cumulative loan balance at its highest?
- Which month is their inventory at its highest?
- Will the firm be starting the following year in a higher or lower beginning cash position?
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