Esquire Products Inc. expects the following monthly sales:

January$49,000July$43,000February40,000August47,000March33,000September50,000April35,000October55,000May29,000November63,000June27,000December45,000Total sales = $516,000

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 33,000 units.

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

c.Explain how to find 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 $9,500 per month.

d.Construct a cash budget for January through December using the cash receipts schedule from partband 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.