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Sorry about the quality, but its readable. Please answer within an hour thanks! QUESTION J2 The following information pertains lo Beach Bure Bouting Compally Month
Sorry about the quality, but its readable. Please answer within an hour thanks!
QUESTION J2 The following information pertains lo Beach Bure Bouting Compally Month January February March Sales $68.000 $87 000 3105 000 Purchase $35 000 $16000 $58000 1 Cash is collected from customers in the following manner. 30% in the month of sale, 70% In the month following the sale. 2 45% of purchases are paid for in cash in the month of purchase, and the remaining 55% is paid the following monti 3. Labor cost ane 205 of sales Other sperating costs are $32,000 per month (including 58.000 of depreciation). Voth of these are paid in the month incurred The cash balance on March is $3.900 Beach Burn his a requirement that a minimum cash balance of 58.000 must be maintained. Beach Bum can borrow cash In Increments of $1,000. Alter calculating ending cash for March what is the amount of cash Beach Bum will need to borrow at March 31? a $3,000 0 $2.000 c. There is no need to borrow cash because the minimum cash balance has been met 2 d $2.000Step by Step Solution
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