Question

The Chadmark Corporation's budgeted monthly sales are $3,000. In the first month, 40% of its customers pay and take the 2% discount.
The remaining 60% pay in the month following the sale and don't receive a discount.
Chadmark's bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at $1,500.
Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month's cash budget with the information given.

Which is the average cash gain or (loss) during a typical month for the Chadmark Corporation?

Answer 1

Answer on Question #43727, Economics, Finance

CASH BUDGET

The average cash gain during a typical month for the Chadmark Corporation is $776, if we don't count the beginning cash, which is differ in different months.

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