UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

80. Correct answer c. Brooke’s February cash balance is $232,500 as shown below.

January February

Opening balance $200,000 $ 55,000

Accounts receivable 300,000 (Dec.) 420,000 (700,000 x .6)

Accounts receivable 280,000 (700,000 x .4) 320,000 (800,000 x .4)

Accounts payable 400,000 (Dec.) 175,000 (350,000 x .5)

Accounts payable 175,000 (350,000 x .5) 212,500 (425,000 x .5)

Other expense 150,000 175,000

Cash balance $ 55,000 $232,500