shadee Corp. expects to sell 610 sun visors in may and 340 in June. Each visor s
ID: 2449568 • Letter: S
Question
shadee Corp. expects to sell 610 sun visors in may and 340 in June. Each visor sells for $11. shadees beginning and ending finished goods inventories for may are 75 and 50 units, respectively. Ending finished goods inventory for June will be 55 units.
calculating cash receipts:
It expected the following unit sales for the third quarter.
July 530
August 440
September 430
sixty percent of shadees sales are cash. of the credit sales, 52 percent is col
lected in the month of the sale, 36 percent is collected during the following month, and 12 percent is never collected.
*calculate shadees total cash receipts for August and September. (do not round your intermediate calculations. round your answer to the nearest whole dollar).
Question 1 (of 5) value 2.00 points E8-11 Calculating Cash Receipts [LO 8-4 Shadee Corp. expects to sell 610 sun visors in May and 340 in June. Each visor sells for $11. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished f a re 75 and 50 units, respectively Ending finished goods imventory for June wil e 9 goods inventory for June will be 55 units. It expects the following unit sales for the third quarter pects the following unit sales for the third quarter, July August September 530 440 430 Sixty perc ent of Shadee's sales are cash. of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 percent is never collected. Required Calculate Shadee's total cas calculations. Round your answers to the nearest whole dollar.) h receipts for August and September (Do not round your intermediate ugust ber Total Cash Receipts Hints References eBook & ResourcesExplanation / Answer
Calculation of cash receipt Month Unit expected to be sold Value Amount Cash sale Credit Sale Collected in the same month Collected in next month Total collection May 610 $11 $6,710 $4,026 $2,684 $1,396 $5,422 June 340 $11 $3,740 $2,244 $1,496 $778 $966 $3,988 July 530 $11 $5,830 $3,498 $2,332 $1,213 $539 $5,249 Aug 440 $11 $4,840 $2,904 $1,936 $1,007 $840 $4,750 Sept 430 $11 $4,730 $2,838 $1,892 $984 $697 $4,519
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