Answer:
$5,820
Step-by-step explanation:
The average net cash flow during the month is total cash receipt minus total payments.
Cash receipt on the month's sales=60%*$20,000*98.5%=$11820
60% cash received ,the 98.5% is after cash discount of 1.5%
cash receipt from previous month sale=40%*$20,000=$8,000
Payment for purchases=$20,000*40%=$8,000
payment for wages,rent and taxes=$20,000*30%=$6000
Total cash inflow=$11,820+$8,000=$19820
total cash outflow=$8,000+$6,000=$14,000
average net cash flow=$19,820-$14,000=$5,820
