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

question 107

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 collected from customers in March?

• A) $47,000
• B) $45,000
• C) $33,000
• D) $43,000

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Definitions:

Mutual Funds

Mutual funds are investment vehicles that pool money from numerous investors to purchase a diversified portfolio of stocks, bonds, or other securities.

U.S. Treasury Bonds

Long-term debt securities issued by the United States Department of the Treasury with a maturity of more than ten years.

Equity Mutual Fund

A corporation that pools the funds of investors, including small investors, and uses them to purchase a bundle of stocks.