Defiant, Inc. makes ATVs that are very popular in the fall and winter season. Units sold are anticipated as: If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. However, the company decides to go with level production to smooth out its manufacturing costs. The company will still produce the 170,000 items over four months. a. Assuming no inventory at the end of September, what is the ending inventory at the end of each month? Create a table to show the units sold, units produced, the change in inventory, and the ending inventory. b. The finished inventory cost is exist2, 150 per unit and will be financed at the bank at a cost of 6 percent (annual rate). Create another table to show the ending inventory, monthly cost in inventory, financing cost, and the total for the four months? c. Identify some of the impacts to the company of choosing level production over seasonal production. In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit? 6. What are the 5 C's of credit that are sometimes used by bankers and other creditors to determine whether a loan will be made? Why is character the most important? 7. Donald's Plumbing Supplies has annual sales of exist6, 025,000. Sixty percent are on credit. The firm has exist585,000 in accounts receivable. Compute the value of the average collection period (be sure to read page 63 regarding days in the year for this calculation)