Esquire Products Inc. expects the following monthly sales:

January	$	39,000	July	$	33,000
February		30,000	August		37,000
March		23,000	September		40,000
April		25,000	October		45,000
May		19,000	November		53,000
June		17,000	December		35,000
Total sales = $396,000

Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire uses level production, and average monthly production is equal to annual production divided by 12.

a. Generate a monthly production and inventory schedule in units. Beginning inventory in January is 23,000 units. b. Prepare a cash receipts schedule for January through December. Assume that dollar sales in the prior December were $20,000.

c. Prepare a cash payments schedule for January through December. The production costs ($1 per unit produced) are paid for in the month in which they occur. Other cash payments (besides those for production costs) are $8,500 per month.

d. Construct a 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 $3,000, which is also the minimum desired. (Negative amounts should be indicated by a minus sign.)

e. Determine total current assets for each month. Include cash, accounts receivable, and inventory. The accounts receivable for a given month is equal to 60 percent of that month's sales. Inventory is equal to ending inventory (part a) times the cost of $1 per unit.

Esquire Products Inc. Production and Inventory Schedule in Units Beginning Production Sales Inventory 23,000 + Ending Inventory January February March April | May June July August September October November December Esquire Products Inc. Cash Receipts Schedule February March January April May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts 0 $ 0 $ 0 $ 0 $ 0 $ 0 Esquire Products Inc. Cash Receipts Schedule August September July October November December Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Esquire Products Inc. Cash Payments Schedule Constant production January February March April May June Production cost Other cash payments Total cash payments 0 $ 0 $ 0 $ 0 $ 0 $ 0 Esquire Products Inc. Cash Payments Schedule Constant production August September July October November December Production cost Other cash payments Total cash payments $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Esquire Products Inc. Cash Budget February March January April May June Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Esquire Products Inc. Cash Budget August September July October November December Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Screen Esquire Products Inc. Assets Cash Accounts Receivable Inventory Total Current Assets January February March April May June July August September October November December