Refer to information in E9-4 for Rainwater Corp. It expects the following unit sales for the third quarter:

Sixty percent of Rainwater’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 Rainwater’s total cash receipts for August and September.

Data from E9-4

Rainwater Corp. expects to sell 600 umbrellas in May and 400 in June. Each umbrella sells for \($15\). Rainwater’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.

Transcribed Image Text:

July August 525 490 September 450