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19 June, 04:23

Shadee Corp. expects to sell 550 sun visors in May and 380 in June. Each visor sells for $12. Shadee's beginning and ending finished goods inventories for May are 85 and 45 units, respectively. Ending finished goods inventory for June will be 65 units. It expects the following unit sales for the third quarter: July 545 August 460 September 470 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 37 percent is collected during the following month, and 9 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

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  1. 19 June, 07:20
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    August = $5, 472

    September = $5,419

    Explanation:

    Shadee Corporation

    Cash Receipt Budget

    For the month of August & September

    August September

    Sales Volume 460 470

    Price per unit 12 12

    Total Sales $5,520 $5,640

    60% Cash Sales $3,312 $3,384

    Credit Sales:

    54% collected in the month of sales

    $1,192 $1,218

    37% collected in the following month

    $968 (1) $817

    Total budgeted cash receipt

    $5,472 $5,419

    Note: (1)

    37% of July's credit sale will be collected in the month of August. Therefore,

    July's total sales = 545 * 12 = $6540

    60% of them is cash = $3,924

    Remaining is credit = $2,616

    37% of credit sales = $2,616 * 37% = $968
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