Use the information below to answer the following question(s).
The following information pertains to Tiffany Company:

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 $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 disbursed in total in March?

Question

Use the information below to answer the following question(s).
The following information pertains to Tiffany Company:
  
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 $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 disbursed in total in March?

Quizplus · Accepted Answer

C) ($20,000 × 60%) + ($28,000 × 40%) + ($50,000 × 20%) + ($15,000 - $4,000) = $44,200

Use the Information Below to Answer the Following Question(s)