Question
Shadee Corp. expects to sell 600 sun visors in May and 450 in June. Each visor sells for $10. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 600 sun visors in May and 450 in June. Each visor sells for $10. Shadees beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 50 units. It expects the following unit sales for the third quarter: July 545 August 480 September 430 Sixty percent of Shadees sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 37 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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