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Problem 6-21 Level production and related financing effects [LO6-3] Bombs Away Video Games Corporation has forecasted the following monthly sales January February March April May

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Problem 6-21 Level production and related financing effects [LO6-3] Bombs Away Video Games Corporation has forecasted the following monthly sales January February March April May June 396,00 Suly $41,00 39.000 August 41,000 21,000 September 51.000 21,000 October 81,000 16.000 November 101,ge 31,660 December 119, Total annual sales - 5700,000 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. Al accounts receivable are collected in the month after the sale is made 6. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 21000 units Bombs Away Video Games Corporation Cash Receipts Schedule August September July October November December Sales Cash receipts Cash sales Prior month's credit sales Total cash receipts 0 $ 05 05 OS 0 SO3 Bombs Away Video Games Corporation Cash Payments Schedule August September July October December November Production cost Other cash payments Total cash payments 0$ 0 $ 0 $ $ $ 0 0 0 $ 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 balance

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