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The following information pertains to Monroe Company: Month Sales Purchases January $68,000 $35,000 February $87,000 $46,000 March $106,000 $58,000 Cash is collected from customers in the following manner: Month of sale 30% Month following the 70% sale 45% of 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. Other operating costs are $32,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. What is the ending cash balance for March? O $5,000 $6,000 $5,200 O $8,900

The following information pertains to Monroe Company: Month Sales Purchases January $68,000 $35,000 February $87,000 $46,000 March $106,000 $58,000 Cash is collected from customers in the following manner: Month of sale 30% Month following the 70% sale 45% of 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. Other operating costs are $32,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. What is the ending cash balance for March? O $5,000 $6,000 $5,200 O $8,900

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to Monroe Company: Month Sales Purchases January $68,000 $35,000 February $87,000 $46,000 March $106,000 $58,000 Cash is collected from customers in the following manner: Month of sale 30% Month following the 70% sale 45% of 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. Other operating costs are $32,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. What is the ending cash balance for March? O $5,000 $6,000 O $5,200 O $8,900
Transcribed Image Text:The following information pertains to Monroe Company: Month Sales Purchases January $68,000 $35,000 February $87,000 $46,000 March $106,000 $58,000 Cash is collected from customers in the following manner: Month of sale 30% Month following the 70% sale 45% of 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. Other operating costs are $32,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. What is the ending cash balance for March? O $5,000 $6,000 O $5,200 O $8,900
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