Answer the Following Questions Using the Information Below:
the Following

question 141

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Hepburn Company:
$$\begin{array} { l r r } \text { Month } & \text { Sales } & \text { Purchases } \\\text { January } & \$ 60,000 & \$ 32,000 \\\text { February } & \$ 80,000 & \$ 40,000 \\\text { March } & \$ 100,000 & \$ 56,000\end{array}$$ - Cash is collected from customers in the following manner:
Month of sale $\quad 30 \%$
Month following the sale $70 \%$
- $40 \%$ 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 $\$ 30,000$ per month (including $\$ 8,000$ of depreciation) . Both of these are paid in the month incurred.
- The cash balance on March 1 is $\$ 8,000$ . A minimum cash balance of $\$ 6,000$ is required at the end of the month. Money can be borrowed in multiples of $\$ 1,000$ .
-How much cash will be collected from customers in March?

• A) $94,000
• B) $86,000
• C) $100,000
• D) $110,000

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Definitions:

Stress-related Decision

Decisions that are influenced or prompted by psychological stress, potentially affecting the outcome or process of making choices.

Primary Appraisal

The initial evaluation process in which an individual assesses whether an event is irrelevant, beneficial, or stressful to them.

Secondary Appraisal

The process of evaluating one's potential to cope with or respond to a threatened or challenging event after its significance has been assessed.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) to stress theorized by Hans Selye, illustrating how stress affects the body over time.