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.)

Respuesta :

Answer:

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

When The Total cash receipts for August and also September

The Total cash receipts for August are = $5,472

The Total cash receipts for September are = $5,419

Calculation of Cash Receipts

Shade Corporation

Then the Cash Receipt Budget

For August & September

August September

Then Sales Volume 460 470

Price per unit 12 12

Therefore, The Total Sales of $5,520  $5,640

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

Then the Credit Sales:

54% collected in the month of sales

$1,192 $1,218

Then, 37% were collected in the following month

$968 (1) $817

The Total budgeted cash receipt

$5,472 $5,419

Note: (1)

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

July's total sales = 545 × 12 = $6540

60% of them is cash = $3,924

Remaining is credit = $2,616

Therefore, 37% of credit sales = $2,616 × 37% = $968

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