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The following information pertains to Monroe Company: Month Sales Purchases January $ 70 comma 000$70,000 $ 38 comma 000$38,000 February $ 88 comma 000$88,000 $
The following information pertains to Monroe Company:
Month | Sales | Purchases | |
January | $ 70 comma 000$70,000 | $ 38 comma 000$38,000 | |
February | $ 88 comma 000$88,000 | $ 40 comma 000$40,000 | |
March | $ 101 comma 000$101,000 | $ 66 comma 000$66,000 |
bullet | Cash is collected from customers in the following manner: |
Month of sale 3030% | |
Month following the sale 7070% | |
bullet | 4545% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. |
bullet | Labor costs are 2525% of sales. Other operating costs are$ 33 comma 000$33,000 per month (including$ 10 comma 000$10,000 of depreciation). Both of these are paid in the month incurred. |
bullet | The cash balance on March 1 is $ 8 comma 000$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 collected from customers in March?
A.
$ 118 comma 300$118,300
B.
$ 101 comma 000$101,000
C.
$ 91 comma 900$91,900
D.
$ 97 comma 100
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