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Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shades sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 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 515 440 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 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

Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shades sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 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 515 440 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 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

FINANCIAL ACCOUNTING
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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Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shade sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: - July: 515 - August: 440 - September: 420 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 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. | | August | September | |----------------|--------|-----------| | Total Cash Receipts | | |
Transcribed Image Text:Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shade sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: - July: 515 - August: 440 - September: 420 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 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. | | August | September | |----------------|--------|-----------| | Total Cash Receipts | | |
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