home / study / business / finance / finance questions and answers / bombs away video games corporation has forecasted the following monthly sales: january $ 120,000 ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: Bombs Away Video Games Corporation has forecasted the following monthly sales: &nbs... Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 120,000 July $ 65000 February 113000 August 65000 March 45000 September 75000 April 45000 October 105000 May 40000 November 125000 June 55000 December 143000 Total annual sales = $996,000 Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. 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, 20 percent are for cash and 80 percent are on account. All accounts receivable are collected in the month after the sale is made.

c. Prepare 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 $65,000 per month Bombs Away Video Games Corporation Cash Payments Schedule February May January March April June Other cash payments Total cash payments Bombs Away Video Games Corporation Cash Payments Schedule August SeptemberOctober December July November Production cost Other cash payments Total cash payments d. Prepare a monthly cash budget for January through December using the cash receipts schedule from part D and the cash payments schedule from part c. The beginning cash balance is $5,000, which is aso the minimum cesired. (Negative amounts should be indicated by a minus sign.) Bombs Away Video Games C Cash Budget January February March April May Beginning cash Net cash flow Cumulative cush bslance Morthy lon or repayment Ending cash belae Cumulave an balence Bombs Away Video Games C Cash Budget July August Ocrober Heginning cash Nat cash iaw Cumulasva cash balanca Monthly loan ar repayment) Ending cash balancc Cumulative loan balance