Shadee Corp. expects to sell 560 sun visors in May and 380 in June. Each visor sells for $19.Shadee's beginning and ending finished goods inventories for May are 65 and 55 units,respectively. Ending finished goods inventory for June will be 50 units. It expects the followingunit sales for the third quarter: July 500 August 460 September 430 Sixty percent of Shadee'ssales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 38 percentis collected during the following month, and 8 percent is never collected. Required: CalculateShadee's total cash receipts for August and September. (Do not round your intermediatecalculations. Round your answers to the nearest whole dollar.)

To calculate Shadee Corp.'s total cash receipts for August and September, we need to consider both…

Answered: Shadee Corp. expects to sell 560 sun…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ed’s Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 44,000 June $ 48,000 April 50,000 July 56,000 May 39,000 August 58,000 Sales in January and February were $47,000 and $46,000 respectively. Experience has shown that 5 percent of total sales are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Ed’s WaterbedsCash Receipts Schedule January February March April May June July August Sales $ $ $ $ $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ $ $ $ $ b. Of the sales…
In October, November, and December, CVM Inc. expects to sell 50,000, 48,000, and 51,000 units, respectively. The company's policy is to keep an end-of-month finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in November?
Mesh Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? A) $118,000 B) $64,500 C) $88,500 D) $110,000
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $40,000, $60,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 40 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 2 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 45 percent of sales, one month prior to selling the finished products. Employees' wages represent 20 percent of sales and rent is $6,000 per month. At the beginning of February, VLC expects to have $4,000 in cash, which is $1,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…
Shadee Corporation expects to sell 630 sun shades in May and 420 in June. Each shades sells for $18. Shadee's beginning and ending finished goods inventories for May are 85 and 60 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter. July August September 530 480 440 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. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September
Benson Company, which sells electric razors, had $300,000 of cost of goods sold during the month of June. The company projects a 6 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $19,000, and the desired ending inventory balance for July is $20,000. Benson pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $34,000. Required a. Determine the amount of purchases budgeted for July. b. Determine the amount of cash payments budgeted for inventory purchases in July. a. Budgeted purchases b. Cash payments
godo
Shalom Company expects credit sales for April, May, and June to be P200,000, P260,000, and P300,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Amounts must be in whole numbers. Example: 88,000 or (88,000) Calculate cash collections from customers for each month. MAY
Steves’s Discount Appliances expects sales of $15,000, $18,000, and $25,000 during April, May, and June (big sale in June). To build business, Steve let’s all customers buy on credit, and all do so. In the past, 20% of Steve’s Discount Appliances sales have been collected during the month of sale 65% are collected the following month, and 15% the month after that. If this trend continues, what will be Steve’s total cash collections in the month of June?
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E
Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end- of-month inventory for January, February, and March?

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