Shadee Corp. expects to sell 570 sun visors in May and 310 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 60 and 40 units, respectively. Ending finished goods inventoryfor June will be 65 units. It expects the following unit sales for the third quarter. July: 575 August: 440 September: 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 39 percent is collected during the following month, and 9 percent is never collected. Calculate Shadee's total cash receipots for August and September?
Shadee Corp. expects to sell 570 sun visors in May and 310 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 60 and 40 units, respectively. Ending finished goods inventoryfor June will be 65 units. It expects the following unit sales for the third quarter. July: 575 August: 440 September: 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 39 percent is collected during the following month, and 9 percent is never collected. Calculate Shadee's total cash receipots for August and September?
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 1PROB
Related questions
Question
Shadee Corp. expects to sell 570 sun visors in May and 310 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 60 and 40 units, respectively. Ending finished goods inventoryfor June will be 65 units.
It expects the following unit sales for the third quarter.
July: 575
August: 440
September: 420
Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 39 percent is collected during the following month, and 9 percent is never collected.
Calculate Shadee's total cash receipots for August and September?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning