Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shades sells for $14. Shadee's beginning and end finished goods inventories for May are 70 and 50 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 515 470 460 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. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar.
Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shades sells for $14. Shadee's beginning and end finished goods inventories for May are 70 and 50 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 515 470 460 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. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B7).
Transcribed Image Text:Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shades sells for $14. Shadee's beginning and ending
finished goods inventories for May are 70 and 50 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
515
470
460
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.
Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar.
Total Cash Receipts
August
September
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