Answer the Following Questions Using the Information Below:
the Following

question 168

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 $\$ 1000$ .
-What is the ending cash balance for March?

• A)$3000
• B)$3200
• C)($25 000)
• D)$18 800

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Definitions:

European Commission

The executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU’s day-to-day operations.

Near Monopoly

A market structure in which a single company or entity dominates the market to an extent that is just short of a total monopoly.

Rule Of Reason

A doctrine used by courts to analyze the legality of certain business practices based on their economic impact, particularly in antitrust law.

Clayton Act

A U.S. legislation enacted in 1914 aimed at preventing anti-competitive practices in their incipiency, amending and bolstering the Sherman Act against monopolies.