In: Accounting
E8-11 Calculating Cash Receipts [LO 8-4]
Shadee Corp. expects to sell 640 sun visors in May and 430 in
June. Each visor sells for $16. Shadee’s beginning and ending
finished goods inventories for May are 60 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 | 560 |
August | 440 |
September | 430 |
Sixty percent of Shadee’s sales are cash. Of the credit sales, 54
percent is collected in the month of the sale, 39 percent is
collected during the following month, and 7 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.)