The ABC Corporations budgeted monthly sales are $4000. In thefirst month 40% of

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The ABC Corporations budgeted monthly sales are $4000. In thefirst month 40% of its customers pay and take the 3% discount. Theremaining 60% pay in the month following the sale and dont receivea discount. ABCs bad debts are very small and are excluded fromthis analysis. Purchases for next months sales are constant eachmonth at $2000. Other payments for wages rent and taxes areconstant at $500 per month. Construct a single months cash budgetwith the information given. What is the average cash gain or (loss)during a typical month for the ABC Corporation?

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