Answer the Following Question(s)using the Information Below

question 88

Multiple Choice

Answer the following question(s) using the information below.The following information pertains to Tiffany 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 $15,000 per month (including $4,000 of depreciation) .Both of these are paid in the month incurred.The cash balance on March 1 is $4,000.A minimum cash balance of $3,000 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)$23,200
• B)$28,000
• C)$44,000
• D)$24,800
• E)$17,600

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Definitions:

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