The Following Information Pertains to Monroe Company

question 214

Multiple Choice

The following information pertains to Monroe Company:

-Cash is collected from customers in the following manner:
Month of sale30%
Month following the sale70%-45% 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 $32,000 per month (including $8,000 of depreciation) . Both of these are paid in the month incurred.
-The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.
What is the ending cash balance for March?

• A) $8,900
• B) $5,200
• C) $5,000
• D) $6,000

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Definitions:

Social Embeddedness

The degree to which individuals or entities are enmeshed in a web of social relationships, influencing and being influenced by norms, behaviors, and expectations.

Brewery

A place where beer is commercially made or produced.

Artisanal Beers

Craft beers that are produced in small quantities by independent breweries, often emphasizing quality and unique flavors.

Team Lifespan

The duration for which a team exists, from its formation to its disbandment.