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Calculate the average cash gain or loss during the month

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XYZ Corporation's budgeted monthly sales are $10,000, and they are constant. Its customers pay as follows: 30% pay in the first month and take the 2% discount, while the remaining 70% pay in the month following the sale and do not receive a discount. Purchases for next month's sales are constant at 60% of projected sales for the next month. Payments for labor costs, rent, and taxes are 25% of sales for the month. Construct a cash budget for a typical month. Calculate the average cash gain or loss during the month.

Reference no: EM132147222

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