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The following information pertains to Monroe Company: Month January Sales Purchases $60,000 $33,000 February March $81,000 $42,000 $102,000 $62,000 Cash is collected from customers
The following information pertains to Monroe Company: Month January Sales Purchases $60,000 $33,000 February March $81,000 $42,000 $102,000 $62,000 Cash is collected from customers in the following manner: Month of sale 40% Month following the sale 60% 50% 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 $9,000 of depreciation). Both of these are A. $52,000 B. $62,000 C. $95,000 OD. $106,000
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