Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Month January February March Sales $70,000 $88,000 $110,000 Purchases $39,000 $48,000 $62,000 Cash is collected from customers in the following manner. Month of sale 30%
Month January February March Sales $70,000 $88,000 $110,000 Purchases $39,000 $48,000 $62,000 Cash is collected from customers in the following manner. Month of sale 30% Month following the sale 70% 50% 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 $33,000 per month (including $10,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $9.000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000 O A. $66,000 O B. $56,000 OC. $111,000 OD. $121,000 How much cash will be disbursed in total in March? O A. $66,000 O B. $56,000 OC. $111.000 OD. $121,000
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