Kicks Shoes is an online store that sells custom-made sneakers. The shoes are sold for $235.00, and the base shoe is purchased for $123.35 from a manufacturer in Vietnam. Because they experience shipping disruptions, they keep 60% of the next month's projected sales forecast in their ending inventory of base shoes. They sold 1,234 units during the month of June, and they expect sales to increase by 10% for each month over the next seven months. They offer generous credit terms that allow the customer to pay 50% when they place their order with the remainder due the following month. Kicks Shoes has experienced a 15% uncollectable rate on their sales. Ending base shoe inventory for June was 814, and sales for June were $289,990.
Using the information provided above, create the following: (All calculations should be rounded to 0 decimals.)
a. Sales forecast for the next 6 months.
b. Schedule of cash receipts for the next 6 months.
c. Purchasing budget for base shoes for the next 6 months.
d. What is the amount of uncollected sales dollars from August's total sales? Explain how this was calculated.

Question

Kicks Shoes is an online store that sells custom-made sneakers. The shoes are sold for $235.00, and the base shoe is purchased for $123.35 from a manufacturer in Vietnam. Because they experience shipping disruptions, they keep 60% of the next month's projected sales forecast in their ending inventory of base shoes. They sold 1,234 units during the month of June, and they expect sales to increase by 10% for each month over the next seven months. They offer generous credit terms that allow the customer to pay 50% when they place their order with the remainder due the following month. Kicks Shoes has experienced a 15% uncollectable rate on their sales. Ending base shoe inventory for June was 814, and sales for June were $289,990. 
Using the information provided above, create the following: (All calculations should be rounded to 0 decimals.)
a. Sales forecast for the next 6 months.
b. Schedule of cash receipts for the next 6 months.
c. Purchasing budget for base shoes for the next 6 months.
d. What is the amount of uncollected sales dollars from August's total sales? Explain how this was calculated.

Quizplus · Accepted Answer

The Answer of Kicks Shoes is an online store that sells custom-made sneakers. The shoes are sold for $235.00, and the base shoe is purchased for $123.35 from a manufacturer in Vietnam. Because they experience shipping disruptions, they keep 60% of the next month's projected sales forecast in their ending inventory of base shoes. They sold 1,234 units during the month of June, and they expect sales to increase by 10% for each month over the next seven months. They offer generous credit terms that allow the customer to pay 50% when they place their order with the remainder due the following month. Kicks Shoes has experienced a 15% uncollectable rate on their sales. Ending base shoe inventory for June was 814, and sales for June were $289,990. 
Using the information provided above, create the following: (All calculations should be rounded to 0 decimals.)
a. Sales forecast for the next 6 months.
b. Schedule of cash receipts for the next 6 months.
c. Purchasing budget for base shoes for the next 6 months.
d. What is the amount of uncollected sales dollars from August's total sales? Explain how this was calculated.

Kicks Shoes Is an Online Store That Sells Custom-Made Sneakers