Question

Shadee Corp. expects to sell 560 sun visors in May and 370 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 75 and 45 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 515 440 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 40 percent is collected during the following month, and 6 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	5016	4788
Credit sales:
July sales	1565.6
August sales	1805.76	1337.6
September sales		1723.68
Total Cash Receipts	8387	7849
Workings:
	August	September
Cash sales	=440*19*60%	=420*19*60%
Credit sales:
July sales	=515*19*40%*40%
August sales	=440*19*40%*54%	=440*19*40%*40%
September sales		=420*19*40%*54%