Front Page Video Games loves the work you did for them on their Last Spike video game facility so now they want you to do an even more detailed analysis for a second manufacturing facility they are planning to run that will make a completely different game called First Spike. They want you to develop forecasts for 2022 using the following information. Units Forecast year 2021 Produced 2,125 5,000 2022 Month November December January February March April May June July August September October November December Ending Other Cash Inventory Sales ($) Payments Ending Cash Units $ 11,000 22,000 $ 8,500 4,250 220,000 $ 41,800 140,000 48,400 380,000 50,600 176,000 55,000 198,000 59,400 154,000 57,200 220,000 41,800 242,000 44,000 242,000 44,000 308,000 46,200 286,000 48,400 242,000 44,000 2023 January 220,000 48,400 Sale price per unit is: $ 18 Cost per unit is: 12 Cash flows for unit costs in any month is the cost per unit times Cash flows for unit costs in any month is the cost per unit times the units produced in the prior month because all unit costs are purchased on account (Accounts Payable) in the month produced and paid in full the following month. Similarly, Other Cash Payments in a month are payments regarding other expenses purchased on account in the prior month. Front Page wants to keep its facility running with a level production policy but they realize this might not be entirely realistic. To save capital investment they are purchasing used equipment that will require extensive repairs and maintenance twice a year. This means that in June and December they will only be able to produce a maximum number of units of: 5,000 units First Spike sales are expected to be a mix of direct online cash sales and various distributors. The distributor's sales will all be on account. Cash receipts from distributor sales are expected to be received across the two months following the sale. Front Page expects cash receipts to be approximately: Cash sales A/R from 1 month prior 70% A/R from 2 months prior 30% 30% MARKS 20 a. Construct a monthly production and inventory schedule in units. Note: To do part a, you should work in terms of units of production and units of sales. 20 b. Prepare a monthly schedule of cash receipts. 20 c. Prepare a monthly schedule of cash payments. 20 d. Prepare a monthly cash budget. To ensure proper liquidity, Front Page use short term loans to maintain a minimum ending cash balance of: $ 26,000 There is no short term liquidity loan balance from 2021 (i.e., opening balance zero) 20 e. Use this additional information to prepare the monthly balance sheet and determine the shareholder equity fluctuations for each month. Property, Plant & Equipment 650,000 Bonds Payable (long term) 500,000 Front Page Video Games loves the work you did for them on their Last Spike video game facility so now they want you to do an even more detailed analysis for a second manufacturing facility they are planning to run that will make a completely different game called First Spike. They want you to develop forecasts for 2022 using the following information. Units Forecast year 2021 Produced 2,125 5,000 2022 Month November December January February March April May June July August September October November December Ending Other Cash Inventory Sales ($) Payments Ending Cash Units $ 11,000 22,000 $ 8,500 4,250 220,000 $ 41,800 140,000 48,400 380,000 50,600 176,000 55,000 198,000 59,400 154,000 57,200 220,000 41,800 242,000 44,000 242,000 44,000 308,000 46,200 286,000 48,400 242,000 44,000 2023 January 220,000 48,400 Sale price per unit is: $ 18 Cost per unit is: 12 Cash flows for unit costs in any month is the cost per unit times Cash flows for unit costs in any month is the cost per unit times the units produced in the prior month because all unit costs are purchased on account (Accounts Payable) in the month produced and paid in full the following month. Similarly, Other Cash Payments in a month are payments regarding other expenses purchased on account in the prior month. Front Page wants to keep its facility running with a level production policy but they realize this might not be entirely realistic. To save capital investment they are purchasing used equipment that will require extensive repairs and maintenance twice a year. This means that in June and December they will only be able to produce a maximum number of units of: 5,000 units First Spike sales are expected to be a mix of direct online cash sales and various distributors. The distributor's sales will all be on account. Cash receipts from distributor sales are expected to be received across the two months following the sale. Front Page expects cash receipts to be approximately: Cash sales A/R from 1 month prior 70% A/R from 2 months prior 30% 30% MARKS 20 a. Construct a monthly production and inventory schedule in units. Note: To do part a, you should work in terms of units of production and units of sales. 20 b. Prepare a monthly schedule of cash receipts. 20 c. Prepare a monthly schedule of cash payments. 20 d. Prepare a monthly cash budget. To ensure proper liquidity, Front Page use short term loans to maintain a minimum ending cash balance of: $ 26,000 There is no short term liquidity loan balance from 2021 (i.e., opening balance zero) 20 e. Use this additional information to prepare the monthly balance sheet and determine the shareholder equity fluctuations for each month. Property, Plant & Equipment 650,000 Bonds Payable (long term) 500,000