Answer the Following Questions Using the Information Below:
the Following

question 42

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 disbursed in total in March?

• A) $42,000
• B) $50,000
• C) $88,400
• D) $96,400

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Definitions:

Stem-and-Leaf Display

A stem-and-leaf display is a graphical method for displaying quantitative data, allowing for the observation of the data’s shape and distribution by organizing numbers based on their leading digits (stems) and trailing digits (leaves).

Midterm Grades

Grades assigned to students midway through an academic term to evaluate their progress and performance in a course up to that point.

Split Stems

A technique in data display where stem units in stem-and-leaf plots are divided to provide a more refined view of data distribution.

Stem-and-Leaf Diagram

A data display method that organizes data points by place value, allowing for quick visual interpretation of the data distribution.