Question

Refer to information in E8-5 for Shadee Corp. It expects the following unit sales for the third quarter:
July ....... 625
August ...... 490
September .... 450

Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Sixty percent of Shadee’s sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 45 percent is collected during the following month, and 5 percent is never collected.

Required:
Calculate Shadee’s total cash receipts for August and September.



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  • CreatedFebruary 27, 2015
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