ssignment ZF#/activity/question Saved Esquire Products Inc. expects the following monthly sales: January February March April May June $ 49,000 July 40,000 August 33,000 September 35,000 October 29,000 November 27,000 December Total sales - $516,000 $ 43,000 47,000 50,000 55,000 63,800 45,000 5 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire uses level production, and average monthly production is equal to annual production divided by 12. a. Generate a monthly production and inventory schedule in units. Beginning inventory in January is 33,000 units. Esquire Products Inc. Production and Inventory Schedule in Units Beginning Production Sales Ending Inventory Inventory January 33,000 February March April May Esquire Products Inc. Production and Inventory Schedule in Units Beginning Production Sales Inventory 33,000 Ending Inventory January February March April May June July August September October November December b. Prepare a cash receipts schedule for January through December. Assume that dollar sales in the prior December were $20,000 Esquire Products Inc. Cash Receipts Schedule February March January April May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Esquire Products Inc. Cash Receipts Schedule August September July October November December Sales 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 (51 per unit produced) are paid for in the month in which they occur. Other cash payments (besides those for production costs) are $9.500 per month Esquire Products Inc. Cash Payments Schedule Constant production February March January April May June Production cost Other cash payments Total cash payments Esquire Products Inc. Cash Payments Schedule Constant production August September July October November December Production cost Other cash payments