Bombs Away Video Games Corporation has forecasted the following monthly sales:
January $ 99,000 July $44,000
February 92,000 August 44,000
March 24,000 September 54,000
April 24,000 October 84,000
May 19,000 November 104,000
June 34,000 December 122,000
Total annual sales $744,000
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. Required:a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 24,000 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 December. The production costs of $2 per unit repaid for n the month in which they occur. Other cash payments, besides those for production costs, are $44,000 per month. 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.