Question
Shadee Corp. expects to sell 570 sun visors in May and 380 in June. Each visor sells for $17. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 570 sun visors in May and 380 in June. Each visor sells for $17. Shadees beginning and ending finished goods inventories for May are 90 and 40 units, respectively. Ending finished goods inventory for June will be 55 units.
It expects the following unit sales for the third quarter:
July 560
August 450
September 450
Sixty percent of Shadees sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 36 percent is collected during the following month, and 14 percent is never collected. Required:
Calculate Shadees total cash receipts for August and September.
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