Shadee Corp. expects to sell 600 sun visors in May and 380 in June. Each visor s

Question

Shadee Corp. expects to sell 600 sun visors in May and 380 in June. Each visor sells for $11. Shadee’s beginning and ending finished goods inventories for May are 90 and 55 units, respectively. Ending finished goods inventory for June will be 65 units.

It expects the following unit sales for the third quarter:      

Sixty percent of Shadee’s sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 38 percent is collected during the following month, and 12 percent is never collected.

Required:

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

July 515 August 440 September 460

Explanation / Answer

Calculate each of Shadee’s total cash receipts for August and September

August september Cash sales 2904 3036 Collection from customer July credit sales 861.08 August credit sales 968 735.68 September credit sales 1012 Total cash receipt 4733 4784

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