Shadee Corp. expects to sell 560 sun visors in May and 310 in June. Each visor s

Question

Shadee Corp. expects to sell 560 sun visors in May and 310 in June. Each visor sells for $14. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units.

It expects the following unit sales for the third quarter:      

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.)

Total Cash Receipts:

July 560 August 450 September 430

Explanation / Answer

Calculate budgeted cash receipts :

August September Cash sales 3780 3612 Collection from customer July Sales 1223.04 August sales 1360.80 982.80 September sale 1300.32 Total cash receipts 6364 5895

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