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The following information pertains to Tiffany Company: Cash is collected from customers in the following manner: Month of sale 2 5 % Month following the
The following information pertains to Tiffany Company:
Cash is collected from customers in the following manner:
Month of sale
Month following the sale
Two months after the sale
of purchases are paid for in cash in the month of purchase, and the balance is
paid the following month.
Labour costs are of sales. Other operating costs are $ per month
including $ of depreciation Both of these are paid in the month incurred. The
cash balance on March is $ A minimum cash balance of $ is required at
the end of the month. Money can be borrowed in multiples of $
a How much cash will be collected from customers in March?
b How much cash will be paid to suppliers in March?
c How much cash will be disbursed in total in March?
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