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Use the information below to answer the following question(s). The following information pertains to Hepburn Company: Month Sales January $60,000 February $80,000 March $100,000 Cash
Use the information below to answer the following question(s). The following information pertains to Hepburn Company: Month Sales January $60,000 February $80,000 March $100,000 Cash is collected from customers in the following manner: Month of sale 30% Purchases $32,000 $40,000 $56,000 Month following the sale 700/ 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. Labour costs are 20% of sales. Other operating costs are $30,000 per month (including $8,000 of depreciation). 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 multiples of $1,000. How much cash will be paid to suppliers in March? O A. $56,000 O B. $35,200 O c. $49,600 OD. $46,400
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