E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 640 sun visors in May...

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.)

Expert Solution

Working note:

ekkarill92 answered 2 years ago

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