Esquire Products Inc. expects the following monthly sales: January February March April May June $ 48,000 July 39,000 August 32,000 September 34,000 October 28,000 November 26,000 December Total sales = $504,000 $ 42,000 46,000 49,000 54,000 62,000 44,000 s 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 32,000 units. Esquire Products Inc. Production and Inventory Schedule in Units Beginning Production Sales Inventory 32,000 + Ending Inventory January February March April May June 10 July August September October November s December Book Hint Print ences 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 February March January April May June Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts Homework Saved Help Esquire Products Inc. Cash Receipts Schedule August September July Sales October November December Cash receipts: Cash sales Prior month's credit sales Total cash receipts 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 $9,400 per month. Esquire Products Inc. Cash Payments Schedule Constant production January February March April May June Production cost Other cash payments Total cash payments