Question

E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 530 sun visors in May and 420 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 65 units. It expects the following unit sales for the third quarter: July August September 530 470 460 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 38 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.) August September Total Cash Receipts

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 4 July Credit sales Collection 6 August Cash Sales 8 August Credit sales collection August September 1530.64 (530*19*0.4*0.38) 5358 (470*19*0.6) 1786 1357.36 (470*19*0.4*0.5) (470*19*0.4*0.38) 5244 (460*19*0.6) 1748 (460*19*0.4*0.5) 8349 10 September Cash Sales 12 September Credit sales collection 13 14 Total Cash Collection 8675 15 16 Thus the final answer is August 8675 September 8349 Total Cash Receipts