The following information pertains to Monroe Company: ...

[colton]

The following information pertains to Monroe Company:

Month

Sales

Purchases

January

$68,000

$35,000

February

$87,000

$46,000

March

$106,000

$58,000

 ∙  Cash is collected from customers in the following manner:

Month of sale

30%

Month following the sale

70%

 ∙  45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
 ∙  Labor costs are 20% of sales. Other operating costs are $32,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred.
 ∙  The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.

What is the ending cash balance for March?
◦ $8,900
◦ $5,200
◦ $5,000
◦ $6,000

[14vl19]

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[colton]

TYSM

[kthug]

Thanks for the timely response, appreciate it