Write a brief analysis of the three inventory policies and explain which policy a retail company should choose. Your write-up should include a discussion of the results you obtained from the analyses below (data came from a retail company scenario. The data is from the retail company question along with cash budget that I didn't do) and should be in the form of a one-page Memo to the President of the company (make up a name). Assume that you are writing on behalf of a financial consultant advising the President about the companys inventory policies.

(Data came from a retail company scenario. The data is from the retail company question along with cash budget I didn't do)

Student ID: 017(65690) Overwatch Corporation Month Budgeted Unit Sales Selling Price Per Unit Sales Revenue December January February March Total first quarter 170,000 40 6800000 50,000 60,000 40 2800000 2400000 2000000 2400000 70,000 40 60,000 40 40 March Total Februa anuary Beginning accounts recievable (December) January Februa March Total cash collections 1960000 1960000 2400000 2000000 720000 7080000 720000 1680000 600000 1400000 720,000 26800002280000 2120000 Overwatch Corporation Purchase Budget DecemberJanuaryFebruary March Quarter 1 Total Budgeted Unit Sales Add: desired ending inventory Total needs Less: beginning inventory Required purchases Unit product cost Cost of inventory purchases 60,000170,000 45000 105,000 215,000 30000 185,000 $25 $1,625,000 $1,375,000 $1,375,000 $1,875,000 $4,625,000 70,000 30000 ,000 85,00080, 35000 6,000 55,00055, 60,000 25000 50,000 30000 80,000 25000 55,00075,000 45000 30000 30000 $25 $25 $25 $25 Overwatch Corporation Budgeted cash disbursement for merchandise purchase For the first quarter Februa December Januay March Total 1625000 1375000 $1,375,000 1375000 Beginning accounts payable (December) January purchases February purchases March purchases Total cash disbursements purchases 1625000 $1,375,000 1625000137500013750004375000 Student ID: 017(65690) Overwatch Corporation Selling Expense Budgets For the first quarter JanuaryFebruary March Quarter 1 Total 170,000 15 Budgeted unit sales Variable selling and administrative expense Total variable selling and administrative expense9000007500009000002,550,000 Fixed selling and administrative expenses Advertising Rent Total fixed selling and administrative Total selling and administrative expense Less depreciation Cash disbursements 60,000 15 50,000 15 60,000 15 14,000 35,000 35,000 35,000 49,000 49,00049,000 14,000 14,000 105,000 147,000 2,697,000 949,000799,000949,0002 16,000 16,000 16,000 2,649,000 93.00073000 93,000498.00 Student ID: 017(65690) Overwatch Corporation Month Budgeted Unit Sales Selling Price Per Unit Sales Revenue December January February March Total first quarter 170,000 40 6800000 50,000 60,000 40 2800000 2400000 2000000 2400000 70,000 40 60,000 40 40 March Total Februa anuary Beginning accounts recievable (December) January Februa March Total cash collections 1960000 1960000 2400000 2000000 720000 7080000 720000 1680000 600000 1400000 720,000 26800002280000 2120000 Overwatch Corporation Purchase Budget DecemberJanuaryFebruary March Quarter 1 Total Budgeted Unit Sales Add: desired ending inventory Total needs Less: beginning inventory Required purchases Unit product cost Cost of inventory purchases 60,000170,000 45000 105,000 215,000 30000 185,000 $25 $1,625,000 $1,375,000 $1,375,000 $1,875,000 $4,625,000 70,000 30000 ,000 85,00080, 35000 6,000 55,00055, 60,000 25000 50,000 30000 80,000 25000 55,00075,000 45000 30000 30000 $25 $25 $25 $25 Overwatch Corporation Budgeted cash disbursement for merchandise purchase For the first quarter Februa December Januay March Total 1625000 1375000 $1,375,000 1375000 Beginning accounts payable (December) January purchases February purchases March purchases Total cash disbursements purchases 1625000 $1,375,000 1625000137500013750004375000 Student ID: 017(65690) Overwatch Corporation Selling Expense Budgets For the first quarter JanuaryFebruary March Quarter 1 Total 170,000 15 Budgeted unit sales Variable selling and administrative expense Total variable selling and administrative expense9000007500009000002,550,000 Fixed selling and administrative expenses Advertising Rent Total fixed selling and administrative Total selling and administrative expense Less depreciation Cash disbursements 60,000 15 50,000 15 60,000 15 14,000 35,000 35,000 35,000 49,000 49,00049,000 14,000 14,000 105,000 147,000 2,697,000 949,000799,000949,0002 16,000 16,000 16,000 2,649,000 93.00073000 93,000498.00