Question

ied Question 4 (of 6) 1 D Save & Exit Submit 4. value: 1.00 points E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 510 sun visors in May and 350 in June. Each visor sells for $20. Shadee's beginning and ending finished goods inventories for May are 80 and 45 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 515 470 470 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 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

	August	September
Cash sales	5640	5640
Credit sales:
July sales	1565.6
August sales	1955.2	1428.8
September sales		1955.2
Total cash receipts	9161	9024
Workings:
	August	September
Cash sales	=470*20*60%	=470*20*60%
Credit sales:
July sales	=515*20*40%*38%
August sales	=470*20*40%*52%	=470*20*40%*38%
September sales		=470*20*40%*52%