PLEASE FINISH THE REMAINING BALNKS IN THE CASH BUDGET
Bombs 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 7 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. 3. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 39,000 units. 3. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 39,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production Ending Inventory Inventory _____III _____III _____III _____III 40,800 I 15,400 I 6,800 I 49,400 58,600 I 15,400 I 11,800 I 62,200 September 62,200 I 15,400 I 13,800 I 63,800 October 63,800 15,400 19,800 I 59,400 November 59,400 15,400 23,800 I 51,000 51,000 I 15,400 I 27,400 I 39,000 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 $$m$mm Sales 114 000 107,000 39,000 39,000 34, 000 49, 000 $ 22,800 $ 21,400 $ 7,800 $ 7,800 $ 6,800 $ 9,800 Prior month's credit sales 80,000 91,200 85,600 31,200 31,200 27,200 Total cash receipts $ 102,800 $ 112,600 $ 93,400 $ 39,000 $ 38,000 $ 37,000 Bombs Away Video Games Corporation Cash Receipts Schedule $ 11,800 $ 11,800 $ 13,800 $ 19,800 $ 23,800 $ 27,400 39, 200 47, 200 47, 200 55, 200 79, 200 95,200 51, 000 59, 000 61,000 75, 000 103, 000 122, 600 Cash receipts: Cash sales Prior month's credit sales Total cash receipts 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 $59,000 per month. Bombs Away Video Games Corporation Cash Payments Schedule February March June May $ 30,800 $ 30,800 $ 30,800 $ 30,800 $ 30,800 $ 30,800 59,000 59,000 59,000 59,000 59,000 59,000 $ 89,800 $ 89,800 $ 89,800 $ 89,800 Production cost Other cash payments Total cash payments Bombs Away Video Games Corporation Cash Payments Schedule July August September October November December Production cost $ 30,800 $ 30,800 $ 30,800 $ 30,800 $ 30,800 $ 30,800 Other cash payments 59,000 59,000 59,000 59,000 59,000 59,000 Total cash payments $ 89,800 $ 89,800 $ 89,800 $ 89,800 $ 89,800 $ 89,800:1. 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.) Bombs Away Video Games Corporation Cash Budget mm\" Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation Cash Budget Beginning cash Net cash ow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance
