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Answer the Following Question(s)using the Information Below

Question 149

Multiple Choice

Answer the following question(s) using the information below.The following information pertains to Hepburn Company:
Answer the following question(s) using the information below.The following information pertains to Hepburn 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 $30,000 per month (including $8,000 of depreciation) .Both of these are paid in the month incurred.The cash balance on March 1 is $8,000.A minimum cash balance of $6,000 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? A) $56,000 B) $46,400 C) $88,000 D) $49,600 E) $35,200 Cash is collected from customers in the following manner:
Answer the following question(s) using the information below.The following information pertains to Hepburn 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 $30,000 per month (including $8,000 of depreciation) .Both of these are paid in the month incurred.The cash balance on March 1 is $8,000.A minimum cash balance of $6,000 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? A) $56,000 B) $46,400 C) $88,000 D) $49,600 E) $35,200 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 $30,000 per month (including $8,000 of depreciation) .Both of these are paid in the month incurred.The cash balance on March 1 is $8,000.A minimum cash balance of $6,000 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?


A) $56,000
B) $46,400
C) $88,000
D) $49,600
E) $35,200

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