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QUESTION 13 The following information pertains to Hepburn Company: Month January February March Sales $60,000 $84,000 $107,000 Purchases $35,000 $42,000 $66,000 Cash is collected from
QUESTION 13 The following information pertains to Hepburn Company: Month January February March Sales $60,000 $84,000 $107,000 Purchases $35,000 $42,000 $66,000 Cash is collected from customers in the following manner: Month of sale 35% Month following the sale 65% 50% 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 $32,000 per month (including $10,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $10,000. 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 disbursed in total in March? $112,750 $58,750 $48,750 $102,750
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