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The following information pertains to Monroe Company: Cash is collected from customers in the following manner: Month of sale 3 5 % Month following the

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 30% of sales. Other operating costs are $38,000 per month (including $8,000 of depreciation). Both of these are
paid in the month incurred.
The cash balance on March 1 is $8,000. 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?
A. $121,400
B. $113,400
C. $63,000
D. $71,000
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