Answered step by step
Verified Expert Solution
Question
1 Approved Answer
41) The following information pertains to Hepburn Company: Month Sales Purchases January $70,000 $38,000 February $85,000 $41,000 March $101,000 $61,000 Cash is collected from customers
41) The following information pertains to Hepburn Company: Month Sales Purchases January $70,000 $38,000 February $85,000 $41,000 March $101,000 $61,000 Cash is collected from customers in the following manner: Month of sale 35% Month following the sale 65% 50% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 25% of sales. Other operating costs are $38,000 per month (including $9000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $10,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. How much cash will be collected from customers in March? A) $90,600 B) $101,000 C)$95,400 D) $120,350
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started