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The ABC Corporation's budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount.

The remaining 60% pay in the month following the sale and don't receive a discount.

ABC's bad debts are very small and are excluded from this analysis.

Purchases for next month's sales are constant each month at $2,000. Other payments for wages, rent, and taxes are constant at $500 per month.

Construct a single month's cash budget with the information given. What is the average cash gain or (loss) during a typical month for the ABC Corporation?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M947404

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