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How much cash will be collected from customers in March? The following information pertains to Hepburn Company: Month Sales Purchases January $66,000 $38,000 February $82,000
How much cash will be collected from customers in March?
The following information pertains to Hepburn Company: Month Sales Purchases January $66,000 $38,000 February $82,000 $45,000 March $107,000 $56,000 Cash is collected from customers in the following manner: Month of sale 40% Month following the sale 60% 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 30% of sales. Other operating costs are $39,000 per month (including $9,000 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. $97,000 B. $107,000 C. $92,000 D. $124, 800Step by Step Solution
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