Question
I need help as soon as possible please. The following information pertains to Monroe Company Month Sales Purchases January $67,000 $42,000 February $90,000 $43,000 March
I need help as soon as possible please.
The following information pertains to Monroe Company
Month Sales Purchases
January $67,000 $42,000
February $90,000 $43,000
March $104,000 $63,000
Cash is collected from customers in the following manner:
Month of sale 30%
Month following the sale $70%
45% 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 $31,000 per month (including $9,000 of depreciation). Both of these are paid in the month incurred.
The cashe balance of March 1 is $15,000. A minimum cash balance of $5,000 is required at the endo f the month. Money can be borrowwed in muliples of $1,000
What is the ending cash balance for March?
A. $15,000
B. $8,800
C. $4,000
D. $5,000
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