Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor s

Question

Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 65 units. It expects the following unit sales for the third quarter July August September 530 500 430 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 39 percent is collected during the following month, and 7 percent is never collected. Required Calculate Shadee's total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) August September Total Cash Receipts

Explanation / Answer

Total Cash Receipts in the respective month are:

   July

(in $)

August

(in $)

September

(in $)

Therefore, total cash receipts was as per Grand Total.

Note: Above solution represents only Cash Sales and Cash Realised sales for the month of August and September so was required by the question.

For any further query, kindly feel free to ask !

Particulars

   July

(in $)

August

(in $)

September

(in $)

Sales 530 500 430 Cash Realisation @ 60% 318 300 258 Credit Sales realised in cash @54% in the same month 114 108 172 Credit Sales realised in cash @39% in the following month 52 83 78 Grand Total (Cash receipts only) 491 508

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