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Problem $6-21($Algo$)$ Level production and related financing effects $[$LO$6-3]$ b$.$ Prepare a monthly schedule of cash recelpts. Sales in December before the planning year are $$100,000.$

c$.$ Prepare a cash payments schedule for January through December. The production costs of $$2$ per unit are pald for in the month in

which they occur. Other cash payments, besides those for production costs, are $$52,000$ per month. $\backslash$table$[[$Bombs Away Video Games Corporation$],[$Cash Payments Schedule$],[,$July,August,September,October,November,December$],[$Production cost$,,,,,,],[$Other cash payments,,,,,,$],[$Total cash payments,,,,,,$]]$

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.

Note: Negatlve amounts should be Indlcated by a minus sign. Leave no cells blank be certaln to enter $\text{'}0\text{'}$ wherever required.

$\backslash$table$[[$Bombs Away Video Games Corporation,$],[$Cash Budget,$],[,$January,February,March,April,May$],[$Beginning cash,,,,,$],[$Net cash flow,,,,,$],[$Cumulative cash balance,,,,,$],[$Monthly loan or $($repayment$),,,,,],[$Ending cash balance,,,,,$],[$Cumulative loan balance,,,,,$]]$

$\backslash$table$[[$Bombs Away Video Games Corporation$],[$Cash Budget$],[,$July,August,September,October,November,December,,$],[$Beginning cash,,,,,,,,$],[$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:

$\backslash$table$[[$January$,$$$107,000,$July,$$52,000],[$February$,100,000,$August,$52,000],[$March$,32,000,$September,$62,000],[$April$,32,000,$October,$92,000],[$May$,27,000,$November,$112,000],[$June$,42,000,$December,$130,000],[,$Total annual sales $=$$$840,000,,]]$

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, $40$ percent are for cash and $60$ percent are on account. All accounts recelvable are collected in the month after the sale is made.

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