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

question 61

Multiple Choice

Use the information below to answer the following question(s) .
The following information pertains to Tiffany 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 $15,000 per month (including $4,000 of depreciation) . Both of these are paid in the month incurred. The cash balance on March 1 is $4,000. A minimum cash balance of $3,000 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) $23,200
• B) $28,000
• C) $24,800
• D) $17,600

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Definitions:

Reward Allocation

The distribution of incentives or benefits among team members based on their contributions, performance, or predetermined criteria.

Resource Allocation

The process of distributing available resources among various projects, tasks, or stakeholders in an efficient manner.

Equality

it is the state of being equal, especially in status, rights, and opportunities.

Equity

The quality of being fair and impartial; in a workplace context, it refers to fair treatment, access, opportunity, and advancement for all people.