Solution of the above problem is as under:
a) Statement showing monthly production and inventory schedule in units
Bombs Away Video Games Corporation | ||||
Production and Inventory Schedule in Units | ||||
Months | Beginning Inventory | Production | Sales | Ending Inventory |
January | 28000 | 13200 | -20600 | 20600 |
February | 20600 | 13200 | -19200 | 14600 |
March | 14600 | 13200 | -5600 | 22200 |
April | 22200 | 13200 | -5600 | 29800 |
May | 29800 | 13200 | -4600 | 38400 |
June | 38400 | 13200 | -7600 | 44000 |
July | 44000 | 13200 | -9600 | 47600 |
August | 47600 | 13200 | -9600 | 51200 |
September | 51200 | 13200 | -11600 | 52800 |
October | 52800 | 13200 | -17600 | 48400 |
November | 48400 | 13200 | -21600 | 40000 |
December | 40000 | 13200 | -25200 | 28000 |
Note: Beginning Inventory + Production - Sales = Ending Inventory
Company follows the production policy of each month production is equal to annual sales divided by 12 .i.e $792000/$5=158400 units/12=13200 units
b) Statement showing monthly schedule of Cash Receipts
Bombs Away Video Games Corporation | ||||||||||||
Cash Receipts Schedule | ||||||||||||
Particulars | January | February | March | April | May | June | July | August | September | October | November | December |
Sales ($) | 103000 | 96000 | 28000 | 28000 | 23000 | 38000 | 48000 | 48000 | 58000 | 88000 | 108000 | 126000 |
Cash Receipts: | ||||||||||||
Cash Sales ($) | 30900 | 28800 | 8400 | 8400 | 6900 | 11400 | 14400 | 14400 | 17400 | 26400 | 32400 | 37800 |
Prior Month's Credit Sales($) | 70000 | 72100 | 67200 | 19600 | 19600 | 16100 | 26600 | 33600 | 33600 | 40600 | 61600 | 75600 |
Toral Cash Receipts ($) | 100900 | 100900 | 75600 | 28000 | 26500 | 27500 | 41000 | 48000 | 51000 | 67000 | 94000 | 113400 |
c) Statement showing monthly cash payment schedule
Bombs Away Video Games Corporation | ||||||||||||
Cash Payment Schedule | ||||||||||||
Particulars | January | February | March | April | May | June | July | August | September | October | November | December |
Production Cost ($) | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 | 26400 |
Other Cash Payments ($) | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 | 48000 |
Total Cash Payments ($) | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 | 74400 |
d) Statement showing Monthly Cash Budget
Bombs Away Video Games Corporation | ||||||||||||
Cash Budget | ||||||||||||
Particulars | January | February | March | April | May | June | July | August | September | October | November | December |
Beginning Cash | 5000 | 31500 | 58000 | 59200 | 12800 | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 |
Cash Receipts via Sales | 100900 | 100900 | 75600 | 28000 | 26500 | 27500 | 41000 | 48000 | 51000 | 67000 | 94000 | 113400 |
Cash Payment for Production | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 | -74400 |
Net Cash Flow | 26500 | 26500 | 1200 | -46400 | -47900 | -46900 | -33400 | -26400 | -23400 | -7400 | 19600 | 39000 |
Cumulative Cash Balance | 31500 | 58000 | 59200 | 12800 | -35100 | -41900 | -28400 | -21400 | -18400 | -2400 | 24600 | 44000 |
Monthly Loan or (Repayment) | 0 | 0 | 0 | 0 | 40100 | 46900 | 33400 | 26400 | 23400 | 7400 | -19600 | -39000 |
Ending Cash Balance | 31500 | 58000 | 59200 | 12800 | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 |
Cumulative Loan Balance | 0 | 0 | 0 | 0 | 40100 | 87000 | 120400 | 146800 | 170200 | 177600 | 158000 | 119000 |
Note: It is given in the question that Minimum Cash Balance to be maintained by the Corporation is $ 5000. Loan is taken in the month where the Monthly Cash goes below the desired limit.
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $103,000 July $ 48,000...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 110,000 July $ 55,000 February 103,000 August 55,000 March 35,000 September 65,000 April 35,000 October 95,000 May 30,000 November 115,000 June 45,000 December 133,000 Total annual sales = $876,000 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 106,000 July $ 51,000 February 99,000 August 51,000 March 31,000 September 61,000 April 31,000 October 91,000 May 26,000 November 111,000 June 41,000 December 129,000 Total annual sales = $828,000 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales S 99,000 July $ 44,000 44,000 54,000 84,000 104,000 122,000 January February March ril May June 92,000 August 24,000September 24,000 October 19,000 November 34,000 December 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales January $107,000 July February100,000 August March $ 52,000 52,000 32,000 September 62,000 92,000 27,000 November 112,000 42,000 December 130,000 ril May June 32,000 October 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)...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March April May June $ 101,000 $101,0 July $ 46,000 94,000 August 46,000 26,000 September 56,000 26,000 October 86,000 21,000 November 106,000 36,000 December 124,000 Total annual sales = $768,000 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales: S 44,000 44,000 54,000 84,000 104,000 122,000 January S 99,000 July March Apn May June 92,000 August 24,000 September 24,000 October 19.000 November 34,000 December 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 104,000 July $ 49,000 February 97,000 August 49,000 March 29,000 September 59,000 April 29,000 October 89,000 May 24,000 November 109,000 June 39,000 December 127,000 Total annual sales = $804,000 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 101,000 July $ 46,000 February 94,000 August 46,000 March 26,000 September 56,000 April 26,000 October 86,000 May 21,000 November 106,000 June 36,000 December 124,000 Total annual sales = $768,000 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...
Esquire Products Inc. expects the following monthly sales: January February March April May June $ 38,000 July 29,000 August 22,000 September 24,000 October 18.ee November 16,eee December Total sales = $384,cee $ 32,000 36,000 39,000 44,000 52,00 34, eee Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each....
Help with all of the red X’s please!! They are not 0!!!! I’ve already tried that. Bombs Away Video Games Corporation has forecasted the following monthly sales: anuary $ 96,000 July 89,000 August 21,000 September 1,000 October 16,000 November 31,000 December S 41,000 41,000 51,000 81,000 101,000 119,000 Total annual sales $708,000 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...