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home / study / business / accounting / accounting questions and answers / esquire products inc. expects the following monthly sales: january $ 44,000 july $ 38,000 february ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: Esquire Products Inc. expects the following monthly sales: January $ 44,000 July $ 38,000 Februar... Esquire Products Inc. expects the following monthly sales: January $ 44,000 July $ 38,000 February 35,000 August 42,000 March 28,000 September 45,000 April 30,000 October 50,000 May 24,000 November 58,000 June 22,000 December 40,000 Total sales = $456,000 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 uses level production, and average monthly production is equal to annual production divided by 12. a. Generate a monthly production and inventory schedule in units. Beginning inventory in January is 28,000 units. b. Prepare

a cash receipts schedule for January through December. Assume that dollar sales in the prior December were $20,000 SALE CASH RECEIPTS CASH SALES PRIOR MONTH CREDIT SALES TOTAL CASH RECEPTS c. Prepare a cash payments schedule for January through December. The production costs ($1 per unit produced) are paid for in the month in which they occur. Other cash payments (besides those for production costs) are $9,000 per month. PRODUCTION COST OTHER CASH PAYMENT TOTAL CASH PAYMENT d. Construct a 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 $3,000, which is also the minimum desired. BEGINNING CASH NET CASH FLOW CUMULATIVE CASH BALANCE MONTLY LOAN OR (REPAYMENT) ENDING CASH BALANCE CUMULATIVE LOAN BALANCE e. Determine total current assets for each month. Include cash, accounts receivable, and inventory. The accounts receivable for a given month is equal to 60 percent of that month's sales. Inventory is equal to ending inventory (part a) times the cost of $1 per unit.

ALL I NEED IS PART E I HAVE EVERYTHIG ELSE

Answer 1

Total Annual Sales value = $456,000

Per Unit Sales Value = $2

Yearly Sales Unit = 456,000/2 = 228,000 Units

Monthly Production required = 19,000 Units

Particulars	January	February	March	April	May	June	July	August	September	October	November	December
Calculation of Sales and Sales Unit
Sales (A)	44,000	35,000	28,000	30,000	24,000	22,000	38,000	42,000	45,000	50,000	58,000	40,000
Cash Sales @ 40% of (A)	17,600	14,000	11,200	12,000	9,600	8,800	15,200	16,800	18,000	20,000	23,200	16,000
Credit Sales @ 60% (A)	26,400	21,000	16,800	18,000	14,400	13,200	22,800	25,200	27,000	30,000	34,800	24,000
Sales Unit (A/$2)	22,000	17,500	14,000	15,000	12,000	11,000	19,000	21,000	22,500	25,000	29,000	20,000
Calculation of Stock
Opening Balance of Stock Unit (B)	28,000	25,000	26,500	31,500	35,500	42,500	50,500	50,500	48,500	45,000	39,000	29,000
Production ('C)	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000
Sales (D)	22,000	17,500	14,000	15,000	12,000	11,000	19,000	21,000	22,500	25,000	29,000	20,000
Closing Stock (E= B+C-D)	25,000	26,500	31,500	35,500	42,500	50,500	50,500	48,500	45,000	39,000	29,000	28,000
Calculation of Cash Balance
Opening cash	3,000	4,600	17,000	21,200	22,000	21,600	16,800	17,200	28,800	44,000	63,000	88,200
Cash Sales	17,600	14,000	11,200	12,000	9,600	8,800	15,200	16,800	18,000	20,000	23,200	16,000
$ Received for Prior Month	12,000	26,400	21,000	16,800	18,000	14,400	13,200	22,800	25,200	27,000	30,000	34,800
Total Cash (F)	32,600	45,000	49,200	50,000	49,600	44,800	45,200	56,800	72,000	91,000	1,16,200	1,39,000
Payment
Purchased Cost	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000	19,000
Other Cost	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000
Total Payment (G)	28,000	28,000	28,000	28,000	28,000	28,000	28,000	28,000	28,000	28,000	28,000	28,000
Closing (F-G)	4,600	17,000	21,200	22,000	21,600	16,800	17,200	28,800	44,000	63,000	88,200	1,11,000
Calculation of Current Assets
Current Assets
Cash	4,600	17,000	21,200	22,000	21,600	16,800	17,200	28,800	44,000	63,000	88,200	1,11,000
Account Receivable	26,400	21,000	16,800	18,000	14,400	13,200	22,800	25,200	27,000	30,000	34,800	24,000
Closing Stock	25,000	26,500	31,500	35,500	42,500	50,500	50,500	48,500	45,000	39,000	29,000	28,000
Total	56,000	64,500	69,500	75,500	78,500	80,500	90,500	1,02,500	1,16,000	1,32,000	1,52,000	1,63,000