Question

Shadee Corp. expects to sell 590 sun visors in May and 410 in June. Each visor sells for $20. Shadee's beginning and ending finished goods inventories for May are 75 and 55 units, respectively. Ending finished goods inventory for June will be 60 units. It expects the following unit sales for the third quarter: July August September 515 480 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 39 percent is collected during the following month, and 11 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

(1) in august:

cash receipts for month of August = (480 x $20) x 50% = $4800

cash receipts for month of July = (515 x $20) x 39% = $4017

total cash receipts = $4800 + $4017 = $8817

(2) in September:

cash receipts for month of September  = (450 x $20) x 50% = $4500

cash receipts for month of August = (480 x $20) x 39% = $3744

total cash receipts = $4500 + $3744 = $8244