Shadee Corp. expects to sell 630 sun visors in May and 310 in June. Each visor s

Question

Shadee Corp. expects to sell 630 sun visors in May and 310 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 80 and 40 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, 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 cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

July 500 August 470 September 450

Explanation / Answer

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

August September Cash Sales 470*18*60% = 5076 450*18*60%=4860 Collection from customer July Sales 500*18*40%*36% = 1296 August sales 470*18*40%*52% = 1760 470*18*40%*36%=1218 September Sales 450*18*40%*52%=1685 Total Cash receipts 8132 7763

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.