E8-11 (Algo) Calculating Cash Receipts [LO 8-4]Shadee Corporation expects to sell 640 sun shades in May and 360 in June. Each shades sells for $11. Shadee's beginningand ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory forJune will be 55 shades.It expects the following unit sales for the third quarter:JulyAugustSeptember545480440Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 39 percent iscollected during the following month, and 9 percent is never collected.Required:Calculate Shadee's total cash receipts for August and September.Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar.AugustSeptemberTotal Cash Receipts

Step 1:Computation of the total cash and credit sales: JulyAugustSeptember Unit sales545480440…

Answered: E8-11 (Algo) Calculating Cash Receipts…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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E8-11 (Algo) Calculating Cash Receipts [LO 8-4] Shadee Corporation expects to sell 520 sun shades in May and 410 in June. Each shades sells for $12. Shadee's beginning and ending finished goods inventories for May are 70 and 55 shades, respectively. Ending finished goods inventory for June will be 60 shades. It expects the following unit sales for the third quarter: July August September 545 480 470 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 40 percent is collected during the following month, and 10 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September.. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September
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