Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 101,000 July...
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 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 receivable are collected in the month
after the sale is made.
a. Construct a monthly production and inventory
schedule in units. Beginning inventory in January is 26,000
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 are paid for
in the month in which they occur. Other cash payments, besides
those for production costs, are $46,000 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. (Negative amounts should be indicated by a minus
sign.)
Homework Answers
| Bombs Away Video Games Corporation | ||||||||||||||
| Unit Sales | ||||||||||||||
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | Oct | Nov | Dec | Total | ||
| Sales | $ 101,000.00 | $ 94,000.00 | $ 26,000.00 | $ 26,000.00 | $ 21,000.00 | $ 36,000.00 | $ 46,000.00 | $ 46,000.00 | $ 56,000.00 | $ 86,000.00 | $ 106,000.00 | $ 124,000.00 | $ 768,000.00 | |
| Sales Price Per Unit | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | $ 5.00 | |
| Sales Units=(Sales/Price per unit) | 20200 | 18800 | 5200 | 5200 | 4200 | 7200 | 9200 | 9200 | 11200 | 17200 | 21200 | 24800 | 153600 | |
| a) | Bombs Away Video Games Corporation | |||||||||||||
| Production and Inventory schedule | ||||||||||||||
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | Oct | Nov | Dec | Total | ||
| Beginning Inventory | 26000 | 18600 | 12600 | 20200 | 27800 | 36400 | 42000 | 45600 | 49200 | 50800 | 46400 | 38000 | 26000 | |
| Production | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 153600 | |
| Sales | 20200 | 18800 | 5200 | 5200 | 4200 | 7200 | 9200 | 9200 | 11200 | 17200 | 21200 | 24800 | 153600 | |
| Ending Inventory | 18600 | 12600 | 20200 | 27800 | 36400 | 42000 | 45600 | 49200 | 50800 | 46400 | 38000 | 26000 | 26000 | |
| Formula=Beginning Inventory+Production-Sales=Ending Inventory | ||||||||||||||
| Production=Total Annual Sales/12 | 153600/12 | 12800 | ||||||||||||
| Bombs Away Video Games Corporation | ||||||||||||||
| b) | Schedule of Expected Cash collection | |||||||||||||
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | Oct | Nov | Dec | Total | ||
| Sales | $ 101,000.00 | $ 94,000.00 | $ 26,000.00 | $ 26,000.00 | $ 21,000.00 | $ 36,000.00 | $ 46,000.00 | $ 46,000.00 | $ 56,000.00 | $ 86,000.00 | $ 106,000.00 | $ 124,000.00 | $ 768,000.00 | |
| Cash Collection=40% | $ 40,400.00 | $ 37,600.00 | $ 10,400.00 | $ 10,400.00 | $ 8,400.00 | $ 14,400.00 | $ 18,400.00 | $ 18,400.00 | $ 22,400.00 | $ 34,400.00 | $ 42,400.00 | $ 49,600.00 | $ 307,200.00 | |
| Collection of Previous month=60% | $ 60,000.00 | $ 60,600.00 | $ 56,400.00 | $ 15,600.00 | $ 15,600.00 | $ 12,600.00 | $ 21,600.00 | $ 27,600.00 | $ 27,600.00 | $ 33,600.00 | $ 51,600.00 | $ 63,600.00 | $ 446,400.00 | |
| Total Cash Collection | $ 100,400.00 | $ 98,200.00 | $ 66,800.00 | $ 26,000.00 | $ 24,000.00 | $ 27,000.00 | $ 40,000.00 | $ 46,000.00 | $ 50,000.00 | $ 68,000.00 | $ 94,000.00 | $ 113,200.00 | $ 753,600.00 | |
| Collection of previous month in January=($100000*60%)= | $ 60,000.00 | |||||||||||||
| Bombs Away Video Games Corporation | ||||||||||||||
| c) | Schedule of Expected Cash Payment | |||||||||||||
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | Oct | Nov | Dec | Total | ||
| Production | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 12800 | 153600 | |
| Production cost per unit | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | $ 2.00 | |
| Production cost paid in same year=(Production*Cost per Unit) | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 25,600.00 | $ 307,200.00 | |
| Other Cash Payment | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 46,000.00 | $ 552,000.00 | |
| Total Cash Payment | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 859,200.00 | |
| d) | Bombs Away Video Games Corporation | |||||||||||||
| Cash Budget | ||||||||||||||
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | Oct | Nov | Dec | Total | ||
| opening Cash balance | $ 5,000.00 | $ 33,800.00 | $ 60,400.00 | $ 55,600.00 | $ 10,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 199,800.00 | |
| Add: Cash Receipts | $ 100,400.00 | $ 98,200.00 | $ 66,800.00 | $ 26,000.00 | $ 24,000.00 | $ 27,000.00 | $ 40,000.00 | $ 46,000.00 | $ 50,000.00 | $ 68,000.00 | $ 94,000.00 | $ 113,200.00 | $ 753,600.00 | |
| Total Cash available | $ 105,400.00 | $ 132,000.00 | $ 127,200.00 | $ 81,600.00 | $ 34,000.00 | $ 32,000.00 | $ 45,000.00 | $ 51,000.00 | $ 55,000.00 | $ 73,000.00 | $ 99,000.00 | $ 118,200.00 | $ 953,400.00 | |
| Amount Borrowed | $ 42,600.00 | $ 44,600.00 | $ 31,600.00 | $ 25,600.00 | $ 21,600.00 | $ 3,600.00 | $ 169,600.00 | |||||||
| Total Cash Payment | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 71,600.00 | $ 859,200.00 | |
| $ (22,400.00) | $ (41,600.00) | $ (64,000.00) | ||||||||||||
| Ending Cash Balance | $ 33,800.00 | $ 60,400.00 | $ 55,600.00 | $ 10,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 199,800.00 | |
Add Answer to:
Bombs Away Video Games Corporation has forecasted the following
monthly sales:
January
$
101,000
July...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $ 106,000 July...
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: January $ 110,000 July $...
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 February March April May...
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: January $ 104,000 July $...
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 $107,000 July February100,000 August...
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 $103,000 July $ 48,000...
Bombs Away Video Games Corporation has forecasted the following monthly sales: January $103,000 July $ 48,000 February 96,000 August 48,000 March 28,000 September 58,000 April 28,000 October 88,000 May 23,000 November 108,000 June 38,000 December 126,000 Total annual sales = $792,000 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...
Bombs Away Video Games Corporation has forecasted the following monthly sales S 99,000 July $ 44,000...
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: S 44,000 44,000 54,000 84,000...
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...
Esquire Products Inc. expects the following monthly sales: January $ 31,000 July $ 25,000 February 22,000...
Esquire Products Inc. expects the following monthly sales: January $ 31,000 July $ 25,000 February 22,000 August 29,000 March 15,000 September 32,000 April 17,000 October 37,000 May 11,000 November 45,000 June 9,000 December 27,000 Total sales = $300,000 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. Esquire...
Esquire Products Inc. expects the following monthly sales: January $ 33,000 July $ 27,000 February 24,000...
Esquire Products Inc. expects the following monthly sales: January $ 33,000 July $ 27,000 February 24,000 August 31,000 March 17,000 September 34,000 April 19,000 October 39,000 May 13,000 November 47,000 June 11,000 December 29,000 Total sales = $324,000 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. Esquire...
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:
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 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 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 $103,000 July $ 48,000 February 96,000 August 48,000 March 28,000 September 58,000 April 28,000 October 88,000 May 23,000 November 108,000 June 38,000 December 126,000 Total annual sales = $792,000 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...
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: 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...
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