Answer the following question(s)using the information below.The following information pertains to Tiffany Company:
Cash is collected from customers in the following manner:
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 $15,000 per month (including $4,000 of depreciation).Both of these are paid in the month incurred.The cash balance on March 1 is $4,000.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 to suppliers in March?

Question

Answer the following question(s)using the information below.The following information pertains to Tiffany Company:
  Cash is collected from customers in the following manner:
  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 $15,000 per month (including $4,000 of depreciation).Both of these are paid in the month incurred.The cash balance on March 1 is $4,000.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 to suppliers in March?

Quizplus · Accepted Answer

The total amount of cash paid to suppliers in March is $23,200. This is calculated by adding the amount of cash paid to suppliers in the first week of March ($11,600) to the amount of cash paid to suppliers in the second week of March ($11,600).

Answer the Following Question(s)using the Information Below