Gamestop Canada has forecasted the following monthly sales:

January: $85,000

Februarv: $78,000

March: $10,000

April: $10,000

Mav: $25,000

June: $20,000

Total sales = $628,000

| Julv: $30.000

August: $30,000

Sentember: $40,000

October: $70.000

November: $110,000

December: $120,000

The firm sells its video game for $10 per unit, and the cost to produce the game is $5 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, 40 percent are for cash and 60 percent are on account. All accounts receivable are collected in the month after the sale is made.

1. Construct a month production and inventory schedule in units. Beginning inventory in January is 10,000 units. (Note: To do part a, you should work in terms of units of production and units of sales.)
2. Prepare a monthly schedule of cash receipts. Sales in the December before the planning year were $110,000. Work part b using dollars.

c.

Determine a cash payments schedule for January through December. The production costs of $5 per unit are paid for in the month in which they occur. Other cash payments, besides those for production costs, are 530,000 per month

d.

Prepare a monthly cash budget for January through December. The beginning cash balance is $4,000, and that is also the minimum desired.