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The Following Information for the Second Quarter of 2011 Pertains

Question 124

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The following information for the second quarter of 2011 pertains to Huffington Company:
The following information for the second quarter of 2011 pertains to Huffington 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. •Labor costs are 20% of sales. Other operating costs are $45,000 per month (including $12,000 of depreciation) . Both of these are paid in the month incurred. •The cash balance on June 1 is $6,000. A minimum cash balance of $4,500 is required at the end of the month. Money can be borrowed in multiples of $3,000. •No loans outstanding on June 1. -How much cash will be disbursed for labor and operating costs in June? A) $63,000 B) $70,000 C) $88,400 D) $96,400
•Cash is collected from customers in the following manner:
The following information for the second quarter of 2011 pertains to Huffington 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. •Labor costs are 20% of sales. Other operating costs are $45,000 per month (including $12,000 of depreciation) . Both of these are paid in the month incurred. •The cash balance on June 1 is $6,000. A minimum cash balance of $4,500 is required at the end of the month. Money can be borrowed in multiples of $3,000. •No loans outstanding on June 1. -How much cash will be disbursed for labor and operating costs in June? A) $63,000 B) $70,000 C) $88,400 D) $96,400
•40% 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 $45,000 per month (including $12,000 of depreciation) . Both of these are paid in the month incurred.
•The cash balance on June 1 is $6,000. A minimum cash balance of $4,500 is required at the end of the month. Money can be borrowed in multiples of $3,000.
•No loans outstanding on June 1.
-How much cash will be disbursed for labor and operating costs in June?


A) $63,000
B) $70,000
C) $88,400
D) $96,400

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