Answer the Following Questions Using the Information Below:
the Following

question 107

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 paid to suppliers in March?

• A) $46,400
• B) $56,000
• C) $88,000
• D) $92,000

---

Definitions:

Vesuvian Creatures

Imaginary or mythological beings associated with or inspired by the characteristics of Mount Vesuvius or volcanic environments in general.

Proximal Stimulus

The stimulus registered by the sensory receptors, e.g., the patterns of light on the retina.

Retinal Image

The image projected onto the retina, the light-sensitive tissue at the back of the eye, which is then processed by the brain to form visual perception.

Shelf

A flat, horizontal surface designed for the storage and display of items.