Bombs Away Video Games Corporation has forecasted the following monthly sales: Bombs Away Video Games...
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Bombs Away Video Games Corporation has forecasted the following monthly sales: 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 montis sales. 40 peicent are for cash and 60 percent are on account. All accounts receivable are collected in the month after the saleismade. 0. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 38000 units a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 38,000 units. b. Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $100,000. c. Prepare a cash payments schedule for January through Decembec 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 $58,000 per month. Bombs Away Video Games Corporation CashPayments Schedule d. Prepare a monthly cash budget for January through December using the cash recelpts 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.)








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