The following information pertains to Tiffany Company: Month Sales Purchases January $30,000 $16,000 February $40,000 $20,000...

 

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The following information pertains to Tiffany Company: Month Sales Purchases January $30,000 $16,000 February $40,000 $20,000 March $50,000 $28,000 M month. Cash is collected from customers in the following manner Month of sale 4 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 Labor 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? None of these answers are correct. $43,000 $47,000 $50,000 The following information pertains to Tiffany Company: Month Sales Purchases January $30,000 $16,000 February $40,000 $20,000 March $50,000 $28,000 M month. Cash is collected from customers in the following manner Month of sale 4 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 Labor 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? None of these answers are correct. $43,000 $47,000 $50,000

Answer rating: 100% (QA)

43000 Working Notes Cash collection from customers in March P... View the full answer