Answer the Following Questions Using the Information Below:
the Following

question 102

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Reef Producers Company:
$\begin{array} { l l c } \text { Month } & \text { Sales } & \text { Purchases } \\ \text { January } & \$ 48000 & \$ 16000 \\ \text { February } & \$ 64000 & \$ 23000 \\ \text { March } & \$ 80000 & \$ 38000 \end{array}$

- Cash is collected from customers in the following manner:

$\begin{array}{ll}\text { Month of sale } & 30 \% \\\text { Month following the sale } & 70 \%\end{array}$

$40 \%$ 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 $\$ 15000$ per month (including $\$ 4000$ of depreciation) . Both of these are paid in the month incurred. The cash balance on 1 March is $\$ 4000$ . A minimum cash balance of $\$ 3000$ is required at the end of the month. Money can be borrowed in multiples of $\$ 1000$ .
-How much cash will be collected from customers in March?

• A)$80 000
• B)$68 800
• C)$57 000
• D)None of these answers are correct.