Esquire Products Inc. expects the following monthly sales: January February March April May June $ 38,000 July 29,000 August 22,000 September 24,000 October 18.ee November 16,eee December Total sales = $384,cee $ 32,000 36,000 39,000 44,000 52,00 34, eee 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 22.000 units. January February March April May June July August September October November December Esquire Products Inc. Production and Inventory Schedule in Units Beginning Inventory Production Sales 22.000 10,000 10,000 19.000 16.000 14.500 20.500 10,000 11.000 25,500 10,000 12,000 29,500 16,000 0.000 36,500 10,000 8.000 44,500 10,000 10,000 44.500 10,000 18,000 42.500 10,000 10,500 39,000 10,000 22.000 33.000 10,000 20.000 23.000 16.000 17,000 Ending Inventory 10.000 20,500 25,500 20,500 36.500 44,500 44,500 42,500 30,000 33.000 23,000 22,000 b. Prepare a cash receipts schedule for January through December. Assume that dollar sales in the prior December were $20,000. Esquire Products Inc. Cash Receipts Schedule January February March 38,000 $ 29,000 $ 22.000 $ $ April 24,000 $ May 18.000 $ June 10,000 Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts $ S 0 $ 0 $ 0 $ 5 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 $ os 0 $ os os O 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 $8.400 per month Esquire Products Inc. Cash Payments Schedule Constant production February March January April May June Production cost Other cash payments Total cash payments 5 os $ os 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 5 OS 5 0 3 s o $ 0 d. Construct a cash budget for January through December using the cash receipts schedule from part band 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.) 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 ces 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 Cumulative loan balance 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. Assets Accounts Cash Receivable Inventory Total Current Assets January February March |April May June August September October November December