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Use the following information for the next 4 questions: The following information pertains to Hepburn Company: Month Sales Suppliers Purchases $32,000 January February March $60,000
Use the following information for the next 4 questions: The following information pertains to Hepburn Company: Month Sales Suppliers Purchases $32,000 January February March $60,000 $80,000 $100,000 $40,000 $56,000 Cash is collected from customers in the following manner: Month of sale 30% - Month following the sale 70% 40% of suppliers 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 for the month. Other operating costs are $22,000 per month. 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 increments of $1,000. How much cash will be collected from customers in March? Select one: O a. $92,000 O b. $90,000 OC. $100,000 O d. $86,000 How much cash will be paid to suppliers in March? Select one $56.000 $.46.400 . $88.000 Od $49.600 How much cash will be disbursed in total in March? Select one: a $88.400 Ob. $68.400 O c. $96.400 O d. $91,600 What is the ending cash balance for March after borrowing, if required? Select one: O a. $8,000 O b. $6,400 O c. $6,000 O d. $6,600
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