Bornbs Away Video Games Corporation has forecasted the following monthly soles: Bombs Away Video Games...
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Bornbs Away Video Games Corporation has forecasted the following monthly soles: Bombs Away Video Games sells the popular Strafo and Capture video game. it selis 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. a. Construct a monthly production and inventory schedule in units. Beginning imventory in January is 32,000 units Note; Input all your answers as positive numbers. 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 are paid for in the month in which they occur Other cash payments, besides those for production costs, are $52,000 per month d. Prepore a monthly cash budget for January through December using the cash receipts schedule from part b and the cesh paymerits schodule from part c The boginning cash balance is $5.000. which is also the minimum desired. Note: Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter-' O ' wherever required
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