Esquire Products Inc expects the following monthly sales January February March April June $.41,000 July 32,000 August 25,000 September 27.000 October 21,000 November 19,000 December Total sales - 5420,000 $ 35,000 39.000 42,000 47,000 55,000 37,000 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 Steach 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 25,000 units. Ending Inventory 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 25,000 22.000 23.500 28,500 32,500 39.500 Check my 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 41.000 5 32.000 25,000 5 April 27 000 s May 21.000 $ June 19,000 $ Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts $ 05 05 05 0 05 05 Esquire Products Inc. Cash Receipts Schedule August September July October December November Sales Cash receipts Cash sale Prior monthsedes Check my w c. Prepare a cash payments schedule for January through December The production costs (51 per unit produced) are paid for in the month in which they occur Other cash payments (besides those for production costs) are $8.700 per month Esquire Products Inc Cash Payments Schedule Constant production January February March 17 500 5 17500 8.700 8.700 26.2005 26 2005 April May June $ Production cost Other cash payments Total cash payments $ 05 05 05 Esquire Products Inc. Cash Payments Schedule Constant production August September July October November December Production cost Esquire Products Inc. Cash Payments Schedule Constant production August September July October November December Production cost Other cash payments Total cash payments 5 0 $ 0 $ 05 ols 0$ Check 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.) 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 January February March S 3,000 $ 5,200 2 200 11,200 $ 5,200 $ 16,400 0 0 $ 5,200 $ 16.400 5 05 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 Check 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 of times the cost of $1 per unit Total Current Assets January February March April May June July August September October November December Esquire Products Inc. Assets Cash Accounts Receivable 5.2005 2460015 16.400 19 200 19 400 15.000 19.000 16.200 17 400 12,600 11.400 11,400 10.600 21000 21 000 23.400 35000 25 200 52,800 28.200 76 800 33,000 98 400 22 200 Inventory 22.000 23.500 28.500 32 500 39.500 47.500 47 500 45 500 12.000 36 000 26.000 25 000