Answer the Following Question(s)using the Information Below

question 176

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.
-What is the ending cash balance for March after borrowing, if required?

• A)$4,000
• B)$3,800
• C)$3,200
• D)$2,800
• E)$3,000

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Definitions:

Treaty of Paris (1763)

This treaty ended the French and Indian War/Seven Years' War between Great Britain and France, resulting in France ceding Canada and land east of the Mississippi River to Britain.

Seven Years' War

A global conflict fought between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, South America, Africa, and Asia.

Consent of the People

Refers to the idea that a government's legitimacy and moral right to use state power is only justified and lawful when consented to by the people or society over which that political power is exercised.

Common Sense

A pamphlet written by Thomas Paine in 1776 advocating for American independence from Britain through plain and persuasive arguments.