value: 2.00 points E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects

Question

value: 2.00 points E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 540 sun visors in May and 340 in June. Each visor sells for $13. Shadee's beginning and ending finished goods inventories for May are 90 and 45 units, respectively. Ending finished goods inventory for June will be 65 units It expects the following unit sales for the third quarter: July August 480 September 460 530 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 39 percent is collected during the following month, and 11 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 Sep Total Cash Receipts

Explanation / Answer

Shadee's Cash Receipt for August & September July August September Sales 530 480 460 Selling Price 13 13 13 Sales Value 6890 6240 5980 60% in Cash         A 4134 3744 3588 Remaining credit 2756 2496 2392 50% collected in the month of sale 1248 1196 39% collected in the following month 1074.84 973.44 collection from credit sales        B 2322.84 2169.44 Requirment part Total Cash Receipt =A+B 4819 4561

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