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- Month of sale 25% - Month following the sale 70% 20% of purchases are paid for in cash in the month of purchase, and
- Month of sale 25% - Month following the sale 70% 20% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the month ince $6,000. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. How much cash will be paid out to suppliers in June? $20,200 $42,000 $22,600 $26,400
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