Question

following month. Labor costs are 20% of sales. Other operating costs are $37,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $10,000. 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

Answer 1

Answer:

$91,600

Explanation:

Since the Cash that was collected from customers in the month of March will be as follows:

A breakdown of each month

For the month of March Sales = 100,000*30% = $30,000

For the month of Feb Sales = 88,000*70% = $61,600

Then the Total Collections = $91,600

therefore, the answer is $91,600