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Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March April May June $ 99.000 July 92.000 August 24.000 September 24,000 October 19.000 November 34,000 December Total annual sales = $744.000 $ 44.000 44,000 54,000 84.000 104.000 122.000 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 24,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production - Sales Inventory 24,000 Ending Inventory January February March April May June July August September October November December 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 February March April January May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Bombs Away Video Games Corporation Cash Receipts Schedule August September October July November December Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts | $ 0 $ 0 $ 0 $ 0 $ 0 $ c. Prepare a cash payments schedule for January through December. The production costs of S2 per unit are paid for in the month in which they occur. Other cash payments, besides those for production costs, are $44,000 per month. Bombs Away Video Games Corporation Cash Payments Schedule February March April January May June Production cost Other cash payments Total cash payments S 0S 0S 0S 0S 0S 0 Bombs Away Video Games Corporation Cash Payments Schedule August September October July November December Production cost Other cash payments Total cash payments $ 0 $ 0 $ 0 0 0 $ d. 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 February March April January May June Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation Cash Budget August September October November r rr July December Beginning cash n Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March April May June $ 99.000 July 92.000 August 24.000 September 24,000 October 19.000 November 34,000 December Total annual sales = $744.000 $ 44.000 44,000 54,000 84.000 104.000 122.000 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 24,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production - Sales Inventory 24,000 Ending Inventory January February March April May June July August September October November December 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 February March April January May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Bombs Away Video Games Corporation Cash Receipts Schedule August September October July November December Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts | $ 0 $ 0 $ 0 $ 0 $ 0 $ c. Prepare a cash payments schedule for January through December. The production costs of S2 per unit are paid for in the month in which they occur. Other cash payments, besides those for production costs, are $44,000 per month. Bombs Away Video Games Corporation Cash Payments Schedule February March April January May June Production cost Other cash payments Total cash payments S 0S 0S 0S 0S 0S 0 Bombs Away Video Games Corporation Cash Payments Schedule August September October July November December Production cost Other cash payments Total cash payments $ 0 $ 0 $ 0 0 0 $ d. 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 February March April January May June Beginning cash Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance Bombs Away Video Games Corporation Cash Budget August September October November r rr July December Beginning cash n Net cash flow Cumulative cash balance Monthly loan or (repayment) Ending cash balance Cumulative loan balance

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