The Following Information for the Second Quarter of 2011 Pertains

question 107

Multiple Choice

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 paid to suppliers in June?

• A)$69,600
• B)$56,000
• C)$88,000
• D)None of the above is correct.

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Definitions:

Negative Emotions

Feelings that are generally associated with evaluations or experiences perceived as unpleasant or undesirable.

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, arrhythmias, and heart defects.

Type A Personalities

Characterized by high competitiveness, self-imposed stress, impatience, and a sense of urgency, potentially leading to higher stress levels.

Pessimists

Individuals who tend to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.