Shadee Corp. expects to sell 560 sun visors in May and 430 in June. Each visor s

Question

Shadee Corp. expects to sell 560 sun visors in May and 430 in June. Each visor sells for $11. Shadee’s beginning and ending finished goods inventories for May are 60 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. It expects the following unit sales for the third quarter:

July        545

August     450

September    470

Sixty percent of Shadee’s sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 38 percent is collected during the following month, and 8 percent is never collected.

Calculate Shadee’s total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

Calculate Shadee’s total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

Explanation / Answer

EXPECTED CASH COLLECTIONS Aug Sep Total Cash Sales 2,970 3102 6072 July Sales 911 911 Aug Sales 1,069 752.4 1821.4 Sep Sales 1116.72 1116.72 Total Cash Collections 4,950 4,971 9,921

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