Level production and related financing costs desired 13. Seasonal Products Corporation expects the following monthly sales: January February March April $20,000 15,000 5,000 3,000 May $ 1,000 June 3,000 July 10,000 August 14,000 Total sales $168,000 September October November December $20,000 25,000 30.000 22,000 Sales are 20 percent for cash in a given month, with the remainder going into accounts receivable. All 80 percent of the credit sales are collected in the month following the sale. Seasonal Products sells all of its goods for $2 each and produces them for $1 each. Seasonal Products 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 5,000 units. (Note: To do part a, you should work in terms of units of production and units of sales.) b. Determine a cash receipts schedule for January through December. Assume dollar sales in the prior December were $15,000. Work part b using dollars. c. Determine a 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 $6,000 per month. d. Construct a cash budget for January through December. The beginning cash balance is $1,000, and that is also the required minimum e. Determine total current assets for each month. (Note: Accounts receivable equal sales minus 20 percent of sales for a given month.)