Question
Crew Clothing (CC) sells womens resort casual clothing to high-end department stores and in its own retail boutiques. CC expects sales for January, February, and
Crew Clothing (CC) sells womens resort casual clothing to high-end department stores and in its own retail boutiques. CC expects sales for January, February, and March to be $360,000, $420,000, and $440,000, respectively. Twenty percent of CCs sales are cash, with the remainder collected evenly over two months. During December, CCs total sales were $670,000. CC is beginning its budget process and has asked for your help in preparing the cash budget. Compute CCs expected cash receipts from customers for each month.
Garfield Corp. expects to sell 1,100 units of its pet beds in March and 500 units in April. Each unit sells for $120. Garfields ending inventory policy is 40 percent of the following months sales. Garfield pays its supplier $30 per unit. Compute Garfield's budgeted purchases of pet beds for March.
hadee Corp. expects to sell 620 sun visors in May and 300 in June. Each visor sells for $14. Shadees beginning and ending finished goods inventories for May are 85 and 40 units, respectively. Ending finished goods inventory for June will be 70 units.
It expects the following unit sales for the third quarter:
July | 515 |
August | 470 |
September | 430 |
Sixty percent of Shadees sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 38 percent is collected during the following month, and 12 percent is never collected.
Required:
Calculate Shadees total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)
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