A major advantage to placing a large order is the savings on overall insurance costs

Rawhide Outfitters had projected its sales for the first six months of 2012 to be as follows:

Jan. $50,000 April $180,000 Feb. $60,000 May $240,000 Mar. $100,000 June $240,000 Cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to the sale. 40% of sales are collected in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are $40,000/month. The company's cash balance as of March 1st, 2012 is projected to be $40,000, and the company wants to maintain a minimum cash balance of $15,000. Excess cash will be used to retire short-term borrowing (if any exists). The firm has no short-term borrowing as of March 1st, 2012. Assume that the interest rate on short-term borrowing is 1% per month. What was Rawhides' projected loss for March? A) $184,000 B) $84,000 C) $110,000 D) none of the above

For a service business, the minimum cardinalities between Sales event and Inventory entity are most likely both 0 for all except which of the following reasons?

A) Service businesses don't sell inventory, they only use inventory to perform services. B) A sale doesn't have to include any inventory. C) Inventory can exist that hasn't been part of a sale yet. D) Some services only require labor.