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Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $8,000, and they...

Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $8,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. Construct a cash budget for a typical month and calculate the average net cash flow during the month. Enter your answer rounded to two decimal places.

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jeff jeffy answered 10 months ago
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