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The following information pertains to Monroe Company: - Cash is collected from customers in the following manner: Month of sale 35% Month following the sale
The following information pertains to Monroe Company: - Cash is collected from customers in the following manner: Month of sale 35% Month following the sale 65% - 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. - Labor costs are 20% of sales. Other operating costs are $30,000 per month (including $10,000 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. $99,900 B. $92,100 C. $121,150 D. $109,000
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