Question

Shadee Corp. expects to sell 600 sun visors in May and 440 in June. Each visor sells for $16. Shadee's beginning and ending finished goods inventories for May are 80 and 50 units, respectively. Ending finished goods inventory for June will be 50 units. It expects the following unit sales for the third quarter: 500 July August September 450 450 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. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) August September Total Cash Receipts

Answer 1

Sales for July = Number of units sold x Selling price per unit

= 500 x 16

= $8,000

Sales for August = 450 x 16

= $7,200

Sales for September = 450 x 16

= $7,200

Cash sales for July = 8,000 x 60%

= $4,800

Credit sales for July = 8,000 x 40%

= $3,200

Cash sales for August = 7,200 x 60%

= $4,320

Credit sales for August = 7,200 x 40%

= $2,880

Cash sales for September = 7,200 x 60%

= $4,320

Credit sales for September = 7,200 x 40%

= $2,880

	August	September
Cash Sales	4,320	4,320
Collection from credit sales of July	3,200 x 37% = 1,184	0
Collection from credit sales of August	2,880 x 52% = 1,497.60	2,880 x 37% = 1,065.60
Collection from credit sales of September	0	2,880 x 52% = 1,497.60
Total Cash Receipts	$7,002	$6,883

Kindly comment if you need further assistance.

Thanks‼!