The following information pertains to Monroe Company:

Month Sales Purchases

January $63,000 $40,000

February $86,000 $40,000

March $102,000 $56,000

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 paid to suppliers in March?

	A.	$56,000
	B.	$102,400
	C.	$96,000
	D.	$46,400