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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 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 $33,000 per month (including $8,000 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. How much cash will be collected from customers in March? A. $93,000 B. $98,000 C. $108,000 D. $126,200Step by Step Solution
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