Question
Shadee Corporation expects to sell 520 sun shades in May and 310 in June. Each shades sells for $15. Shadees beginning and ending finished goods
Shadee Corporation expects to sell 520 sun shades in May and 310 in June. Each shades sells for $15. Shadees beginning and ending finished goods inventories for May are 60 and 55 shades, respectively. Ending finished goods inventory for June will be 50 shades.
It expects the following unit sales for the third quarter:
July | 500 |
---|---|
August | 470 |
September | 430 |
Sixty percent of Shadees sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 37 percent is collected during the following month, and 11 percent is never collected.
Required:
Calculate Shadees total cash receipts for August and September.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started