Use the Information Below to Answer the Following Question(s)

question 5

Multiple Choice

Use the information below to answer the following question(s) .
The following information pertains to Hepburn Company:

Cash is collected from customers in the following manner:
- Month of sale 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.
Labour 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) $92,000
• B) $90,000
• C) $86,000
• D) $66,000

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Definitions:

Panic Disorder

A mental health condition marked by sudden, recurrent episodes of severe panic along with physiological reactions.

Social Anxiety Disorder

A mental health disorder characterized by intense fear and avoidance of social situations due to feelings of embarrassment, self-consciousness, and concern about being judged or viewed negatively by others.

Obsessive-Compulsive-Related Disorders

Psychiatric disorders characterized by the presence of obsessive thoughts and compulsive behaviors.

Cognitive Perspective

A psychological approach that focuses on the mental processes involved in knowing, including perception, thinking, memory, and judgment.