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ombs Away Video Games Corporation has forecasted the following monthly sales:

January	$	114,000	July	$	59,000
February		107,000	August		59,000
March		39,000	September		69,000
April		39,000	October		99,000
May		34,000	November		119,000
June		49,000	December		137,000
Total annual sales = $924,000

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. a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 39,000 units.

Answer is complete and correct. b. Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $100,000. Prepare a cash payments schedule for January through December. The production costs of $2 per unit are paid for in the month which they occur. Other cash payments, besides those for production costs, are $59,000 per month. d. Prepare a monthly cash budget for January through December using the cash receipts schedule from part b and 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 sign.)