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The following information pertains to Monroe Company: Month January Sales Purchases $67,000 $42,000 February $89,000 $45,000 March $101,000 $57,000 Cash is collected from customers
The following information pertains to Monroe Company: Month January Sales Purchases $67,000 $42,000 February $89,000 $45,000 March $101,000 $57,000 Cash is collected from customers in the following manner: Month of sale 35% Month following the sale 65% 45% 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 $38,000 per month (including $9,000 of depreciation). Both of these are O A. $9,000 OB. $14,400 OC. $8,000 OD. $9,200
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