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The following information is about a Company Month Sales Purchases Jan. 60,000 30,000 Feb. 80,000 40,000 Mar. 100,000 60,000 Cash is collected from customers in
The following information is about a Company
Month Sales Purchases
Jan. 60,000 30,000
Feb. 80,000 40,000
Mar. 100,000 60,000
Cash is collected from customers in the following manner:
Month of sale 45%
Month following the sale 60%
40% of purchases are paid for in cash in the month of purchase, and the balance is paid in the following month.
Labor costs are 30% of sales. Other operating costs are 38,000 per month including deprecation of 10,000. Both of these are paid in the month incurred.
How much cash will be disbursed in total in March?
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