FIN 220 - ASSIGNMENT 3 (CH. 4) (67 marks) Kirby's Krafts is a small retail business selling one product, which they produce once per month and sell for $40 per unit. Kirby's has the following forecasted sales (in units): April May 500 900 June 700 1,000 1,200 July August To prepare for a potential increase in demand, the firm wants to have 20% of next months' projects sales on hand. 75% of sales are collected in the month sold and 25% are collected one month later. As of April 30 they had 100 units on hand. Costs associated with production are an average of $10 per unit for materials, $12 per unit for labour, and $3 per unit for overhead. All associated costs are paid for in the month following production. Kirby's has a minimum cash balance of $25,000. If any shortages are experienced, the firm will take a bank loan. If there are excess funds, the cash is used to pay for any outstanding bank loan balance. In May, Kirby's has an opening balance of cash of $25,000 and an outstanding loan balance of $10,000. REQUIRED: Prepare a sales project in dollars, production schedule, schedule of cash receipts, schedule of cash payments, and cash budget. NOTE: Cells shaded are required; the other cells are optional and therefore no marks will be provided for them, but they are available if you choose to use them.