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Question - Shadee Corp. expects to sell 610 sun visors in May and 320 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 75 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.
It expects the following unit sales for the third quarter:
July 560
August 500
September 420
Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 36 percent is collected during the following month, and 14 percent is never collected.
Required - Calculate Shadee's total cash receipts for August and September.
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