$18,000 $25,000 $32,000 is collected from customers in the following manner: Month of sale 25% - Month following the sale 70% -Uncollectible 5% f purchases are paid for in cash in the month of purchase, and the balance is paid the following month. costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the O. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. much cash will be paid out to suppliers in June? 20,200 2,000 2,600 6,400 $45,000 $50,000 $55,000
$18,000 $25,000 $32,000 is collected from customers in the following manner: Month of sale 25% - Month following the sale 70% -Uncollectible 5% f purchases are paid for in cash in the month of purchase, and the balance is paid the following month. costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the O. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. much cash will be paid out to suppliers in June? 20,200 2,000 2,600 6,400 $45,000 $50,000 $55,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 220.
Transcribed Image Text:Month
April
May
June
Purchases
$18,000
$25,000
$32,000
Cash is collected from customers in the following manner:
Sales
$45,000
$50,000
$55,000
Month of sale 25% -Month following the sale 70%
-Uncollectible 5%
20% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Labor costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the month incu
$6,000. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.
How much cash will be paid out to suppliers in June?
O$20,200
$42,000
$22,600
O $26,400
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