Shadee Corp. expects to sell 630 sun visors in May and 420 in June. Each visor s

Question

Shadee Corp. expects to sell 630 sun visors in May and 420 in June. Each visor sells for $14. Shadee's beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 70 units. It expects the following unit sales for the third quarter: July August September 530 460 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 36 percent is collected during the following month, and 14 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.) AugustSeptember Total Cash Receipts

Explanation / Answer

August September Expected sales in units 460 450 Unit price $        14 $              14 Expected sales in value $ 6,440 $        6,300 Cash received from cash sales (60% of sales) $ 3,864 $        3,780 Cash received from July credit sales ((530*$14)*40%*36%) $ 1,068 Cash received from August credit sales ($6,440*40%*50%) $ 1,288 $            927 Cash received from September credit sales ($6,300*40%*50%) $        1,260 Total cash Receipts $ 6,220 $        5,967

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