Nagel Corporation's Budgeted Monthly Sales Are $5,000, and They Are

Nagel Corporation's budgeted monthly sales are $5,000, and they are constant from month to month. Its customers pay as follows: 40% 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 payments for wages, rent, and taxes, are 25% of sales for the month. Construct a cash budget for a typical month. What is the average cash gain or loss during the month?

A) $1,092
B) $1,150
C) $1,210
D) $1,271