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NEED HELP WITH B-D THANK YOU Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March April $ 102,eee July 95,00
NEED HELP WITH B-D THANK YOU
Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March April $ 102,eee July 95,00 August 27,022 September 27,09 October 22,980 November 37,088 December Total annual sales = $780,000 $ 47,000 47,000 57, eee 87, eee 187,000 125, eee May June 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 a. Construct a monthly production and Inventory schedule In units. Beginning Inventory In January is 27,000 units. Ending Inventory 19,600 January February March April May Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production - Sales Inventory 27,000 13,000 20,400 19,600 13.000 19.000 13,600 13,000 5,400 21,200 13,000 5,400 28,800 13.000 4,400 37,400 13,000 7,400 43,000 13,000 9,400 46,600 13,000 9,400 50.200 13,000 11,400 51,800 13,000 17,400 47,400 13,000 21,400 39,000 13,000 25,000 June July 13,600 21,200 28.800 37,400 43,000 48,600 50,200 51,800 47.400 39,000 27,000 August September October November December b. Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $100,000. Bombs Away Video Games Corporation Cash Receipts Schedule January February March 1 01.800 S 93.400 4 0,000 April 27.000 May 23.000 June 34.000 S Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts 5 S 21,600S 80.000 101.600 $ 20.400S 81,600 102,000 $ 19.000 S 78.000 95.000 .400S 21.600 27.000 $ 5.400 21.600 27.000 4.400 17,600 22.000 s $ Bombs Away Video Games Corporation Cash Receipts Schedule July August September 4 5.000 47.000 S 55.000 S October 81.000 November December s 103.000 $ 121.400 S Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts S 7 S S s S .400 29,600 37,000 9.400 37.600 47.000 9.4001 37,600 47,000 11,400 45,600 57,000 17.400 69.600 87,000 21.400 85.600 107.000 $ $ $ $ $ $ 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 $47.000 per month. Bombs Away Video Games Corporation Cash Payments Schedule February March January April May June Production cost Other cash payments Total cash payments S0S 0S 0S 0S 0S Bombs Away Video Games Corporation Cash Payments Schedule July August September October November December Production cost Other cash payments Total cash payments so so so so so so d. Prepare a monthly cash budget for January through December using the cash receipts schedule from part band the cash payments schedule from part c. The beginning cash balance is $5,000, which is also the minimum desired. (Negative amounts should be Indicated by a minus slgn.) Bombs Away Video Games Corporation Cash Budget February March January April May June Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation Cash Budget August September July October November December Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balanceStep by Step Solution
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