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

---

Definitions:

Structural Unemployment

Unemployment arising from a persistent mismatch between the skills of workers and the requirements of jobs, often exacerbated by technology or market changes.

Frictional Unemployment

Temporary unemployment experienced by individuals transitioning between jobs, seasons, or moving to new locations.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded.

Job Searching

The process by which individuals seek and find employment opportunities.