Shadee Corporation expects to sell 540 sun shades in May and 390 in June. Each shades sells for $17. Shadee's beginning and ending finished goods inventories for May are 85 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 545 490 440 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 37 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 540 sun shades in May and 390 in June. Each shades sells for $17. Shadee's beginning and ending finished goods inventories for May are 85 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 545 490 440 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 37 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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Transcribed Image Text:Shadee Corporation expects to sell 540 sun shades in May and 390 in June. Each shades sells for $17. Shadee's beginning and
ending finished goods inventories for May are 85 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
490
440
Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 37 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.
August
September
Total Cash Receipts
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