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Front Page Video Games Corporation has forecasted the following monthly sales: January $100,000 February 93,000 March 25,000 April 25,000 May 20,000 June 35.000 Total sales
Front Page Video Games Corporation has forecasted the following monthly sales: January $100,000 February 93,000 March 25,000 April 25,000 May 20,000 June 35.000 Total sales + $756,000 July August September October November December $45,000 45,000 55,000 85,000 105,000 123,000 The firm sells its Last Spike video game for $5 per unit, and the cost to produce the game is $2 per unit. A level production policy is followed. Each month's production is equal to annual sales in units) divided by 12. of each month's sales, 30 percent are for cash and 70 percent are on account. Al accounts receivable are collected in the month after the sale is made a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 25.000 units. (Note: To do parta you should work in terms of units of production and units of sales) Help Save & Exit SL a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 25,000 units. (Note: To do parte, you should work in terms of units of production and units of sales.) Ending inventory Front Page Video Games Corporation Production and inventory schedule in units Beginning inventory Production Sales January 25,000 February March April May June July August September October November December b. Prepare a monthly schedule of cash receipts. Sales in the December before the planning year were $100,000. Work part b using dollars Front Page Video Games Corporation January February March April $ May $ June Sales Cash sales Prior month's Sales Total cash receipts $ Front Page Video Games Corporation July August September October $ November December Sales Cash sales Prior month's sales Total cash receipts $ c. Determine a cash payments schedule for January through December. The production costs of $2 per unit are paid for in the month in which they occur. Other cash payments, besides those for production costs, are $45,000 per month Front Page Video Games Corporation Constant production January February March April May June Production cost $ Other cash payments 5 S $ $ Total cash payments S $ S $ July Front Page Video Games Corporation Constant production August September October $ $ 5 November 5 Production cost Other cash payments December $ $ Total cash payments $ d. Prepare a monthly cash budget for January through December. The beginning cash balance is $5,000, and that is also the minimum desired. (Do not leave any empty spaces: Input a wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign.) Front Page Video Games Corporation March April May Net cash flow Beginning cash January February $ June $ s S s $ 5 $ Cumulative cash balance Monthly loan or (repayment) Cumulative loan Ending cash balance Front Page Video Games Corporation July August September October $ $ November December 5 Net cash flow Beginning cash $ $ $ $ $ Cumulative cash balance Monthly loan or (rupayment) Cumulative loan Ending cash balance S
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