The following information pertains to Monroe Company: Month Sales Purchases January $67,000 $32,000 February $88,000 $45,000 March
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Question:
- 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
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