Shadee Corp. expects to sell 500 sun visors in May and 430 in June. Each visor s

Question

Shadee Corp. expects to sell 500 sun visors in May and 430 in June. Each visor sells for $13. Shadee’s beginning and ending finished goods inventories for May are 85 and 45 units, respectively. Ending finished goods inventory for June will be 55 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, 38 percent is collected during the following month, and 8 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.)

July 560 August 490 September 450

Explanation / Answer

Calculate Shadee’s total cash receipts for August and September.

August September Cash sales 3822 3510 Collection from customer July Sales 1106.56 August sales 1375.92 968.24 September sale 1263.60 Total cash receipts 6304 5742

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