The Following Information for the Second Quarter of 2011 Pertains

question 68

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 collected from customers in June?

• A)$129,000
• B)$141,000
• C)$150,000
• D)None of the above is correct.

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Definitions:

Micro-USB

A standard interface port on mobile devices and smartphones.

Mini-USB

A port found on mobile devices that is a miniaturized version of the Universal Serial Bus (USB) interface created for connecting smartphones, GPS devices, printers, and digital cameras.

Portable Devices

Handheld electronic devices designed for portability and convenience, such as smartphones, tablets, and portable media players.

2.4GHz Range

Refers to the bandwidth spectrum around the 2.4GHz frequency used predominantly in wireless communications and devices, such as WiFi and Bluetooth.