Answer the Following Questions Using the Information Below:
the Following

question 92

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 $\$ 1,000$ .
-What is the ending cash balance for March?

• A) ($50,000)
• B) $6,000
• C) $5,600
• D) $6,600

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Definitions:

Lemon Test

A three-pronged test established by the Supreme Court to determine whether government action violates the Establishment Clause of the First Amendment.

Establishment Clause

A provision in the First Amendment of the U.S. Constitution that prohibits the government from establishing an official religion or unduly favoring one religion over another.

Clear and Present Danger

A legal doctrine that allows the government to restrict free speech if it poses a direct and imminent threat to societal order or national security.

Miller Test

A legal standard used by courts to determine whether speech or expression can be defined as obscene, based on whether it lacks serious value, depicts sexual conduct in an offensive way, or appeals to prurient interests.