Question

E8-11 Calculating Cash Receipts [LO 8-4) Shadee Corp. expects to sell 650 sun visors in May and 440 in June. Each visor sols for $12. Shadee's beginning and ending finished goods inventories for May are 85 and 50 units respectively Ending finished goods inventory for June will be 60 units It expects the following unit sales for the third quarter August September 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month and 10 percent is never concio 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

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		May	June	July	August	Sept
i	Sales unit	650	440	515	450	450
ii=i*12	sales revenue	7,800	5,280	6,180	5,400	5,400
iii	Cash sales @ 60% of the month	4,680	3,168	3,708	3,240	3,240
iv	Credit sales @ 40%	3,120	2,112	2,472	2,160	2,160
	Computation of cash collection
v	Cash sales	4,680	3,168	3,708	3,240	3,240
vi	52% of credit sales of the mth	1,622	1,098	1,285	1,123	1,123
vii	38% of credit sales of last mth		1,186	803	939	821
viii	10% of credit sales of last to last month			312	211	247
	Total cash receipt			6,108	5,514	5,431