1. The following information pertains to Monroe Company:

Month Sales Purchases January $67,000 $32,000 February $88,000 $45,000 March $100,000 $58,000

• Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70%
• 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 $37,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred.
• The cash balance on March 1 is $10,000. 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?

Group of answer choices

$96,400

$100,000

$91,600

$118,000

Answer rating: 100% (QA)

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