Esquire Products Inc, expects the following monthly sales January February March April May June $ 38,000 July 21,000 August 14.000 September 16,000 October 10,000 November 8,000 Decenber Total sales $280,000 $ 24,000 28,000 31,000 36,000 44,000 26,000 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 sols all of its goods for $2 each and produces them for $1each. 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 14,000 units. Esquire Products Inc. Production and Inventory Schedule in Units Beginning inventory Production Sales Ending Inventory 14.000 12.000 15.000 January February March 12.000 11.000 12.500 11,000 12.500 17.500 21.500 12.000 April 12.000 17,500 21,500 10,500 7.000 8,000 5,000 4,000 12.000 May June 28,500 12.000 12.000 12,000 12,000 12,000 28.500 36,500 36,500 34,500 36.500 36,500 34,500 July August September October November December 31,000 25.000 31.000 14.000 15.500 18.000 22.000 13,000 12.000 12.000 25,000 15.000 14.000 15,000 12,000 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 March April June May January 30,000 February 21,000 Sales $ S 5 14,000 Cash receipts Cash sales $ 12.000 $ 8,400 $ 5,600 12,000 18,000 Prior month's credit sales Total cash receipts 12,600 18,200 $ $ 24,000 26,400 $ 0 $ 5 5 Esquire Products Inc. Cash Receipts Schedule August September July October November December Sales Cash receipts Cash sales Prior month's credit sales Tatal cash receipts $ O 5 0 $ $ $ $ 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 occut. Other cash payments (besides those for production costs) are $7,500 per month Esquire Products Inc Cash Payments Schedule June April May Constant production February March 12,000 $ 7,600 12,000 12,000 $ $ $ Production cost $ 5 January 12.000 7,600 19.600 12,000 7,600 7,600 7,600 12.000 7,600 19,500 Other cash payments Total cash payments $ 5 5 $ $ 19.000 19,600 19,600 19,500 5 Esquire Products Inc. Cash Payments Schedule Constant production August September October November December Production cost Other cash payments $ $ $ 0 $ $ 5 0 Total cash payments d. Construct a cash budget for January through December using the cash receipts schedule from part band the cash payments schedule from partc The beginning cash balance is $3,000, which is also the minimum desired. (Negative amounts should be indicated by a minus sign.) January April June May $ 3,000 $ Beginning cash Not cash flow Cumulative cash balance Esquire Products Inc. Cash Budget February March 7,400.5 14,200 6,800 (1400) 14,200 $ 12,800 0 0 4,400 $ 7.400 $ 0 $ Monthly loan or repayment) Ending cash balance Cumulative loan balance 7,400 $ 14,200 $ 12.000 5 0 $ 0 $ 0 Esquire Products Inc. Cash Budget August September July October December November Beginning cash Not 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 times the cost of $1 per unit Esquire Products Inc. Assets Cash Accounts Receivable Inventory Total Current Assets January February March April May June July August September October November December