Question
Shadee Corp. expects to sell 550 sun visors in May and 430 in June. Each visor sells for $11. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 550 sun visors in May and 430 in June. Each visor sells for $11. Shadees beginning and ending finished goods inventories for May are 80 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 | 500 |
August | 440 |
September | 420 |
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Sixty percent of Shadees sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 35 percent is collected during the following month, and 13 percent is never collected.
Required: Calculate Shadees total cash receipts for August and September.
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