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Please choose the right answer. The following information pertains to Monroe Company: - Cash is collected from customers in the following manner: Month of sale
Please choose the right answer.
The following information pertains to Monroe Company: - Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70% - 40% 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 $39,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. - The cash balance on March 1 is $8,000. 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 paid to suppliers in March? A. $108,200 B. $98,000 C. $63,000 D. $54,000Step by Step Solution
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