Question: Use the information below to answer the following question(s).

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

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.
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.

What is the ending cash balance for March?

a. $3,000
b. $3,800
c. $28,000
d. $3,200