Shadee Corp. expects to sell 610 sun visors in May and 440 in June. Each visor s

Question

Shadee Corp. expects to sell 610 sun visors in May and 440 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 85 and 40 units, respectively. Ending finished goods inventory for June will be 55 units It expects the following unit sales for the third quarter: July August September 515 500 460 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 37 percent is collected during the following month, and 13 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

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars July Aug Sep Unit Sales                  515.00                  500.00                  460.00 Selling price per unit                    18.00                    18.00                    18.00 Sales Value              9,270.00              9,000.00              8,280.00 Cash Sales at 60%   a              5,562.00              5,400.00              4,968.00 Credit Sales at 40%              3,708.00              3,600.00              3,312.00 Collection of credit sales in same month at 50% b              1,854.00              1,800.00              1,656.00 Collection of credit sales in next month at 37% c              1,371.96              1,332.00 Total Cash receipts = a +b +c              7,416.00              8,571.96              7,956.00

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