Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 50 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 625 490 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 45 percent is collected during the following month, and 5 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. (Round your answers to the nearest whole dollar.) Total Cash Receipts August September
Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 50 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 625 490 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 45 percent is collected during the following month, and 5 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. (Round your answers to the nearest whole dollar.) Total Cash Receipts August September
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18.
Shadee's beginning and ending finished goods inventories for May are 75 and 50 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
625
490
450
Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the
month of the sale, 45 percent is collected during the following month, and 5 percent is never
collected.
Required:
Calculate Shadee's total cash receipts for August and September. (Round your answers to the
nearest whole dollar.)
Total Cash Receipts
August September
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