Esquire Products Inc. expects the following monthly sales:

January$38,000 July$32,000 February29,000 August36,000 March22,000 September39,000 April24,000 October44,000 May18,000 November52,000 June16,000 December34,000 Total sales = $384,000

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 22,000 units.

b.cash receipts schedule for January through December. Assume that dollar sales in the prior December were $20,000.

c.

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.

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.)

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 (parta) times the cost of $1 per unit.