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.

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.

 

Bombs Away Video Games Corporation has forecasted the following monthly sales: January February $ 114,000 107,000 July August $ 59,000 59,000 March 39,000 September April May 39,000 October 34,000 November 69,000 99,000 119,000 137,000 June 49,000 December 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.