Calculate the general purchasing power gain or loss in 1991 given the following information:

a. The Cash balance on December 31, 1990, was \(\$ 2,500\). During 1991, cash sales occurred uniformly throughout the year and amounted to \(\$ 20,500\). Payments of expenses also occurred evenly throughout the year and amounted to \(\$ 15,500\). Accounts payable of \(\$ 5,200\) were paid in December.

b. Accounts payable amounted to \(\$ 3,000\) on December 31, 1990. Additional accounts payable amounting to \(\$ 4,600\) were recorded evenly throughout 1991. The only payment of accounts during the year was \(\$ 5,200\) in late December.

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Time Period Price Index December 1990 125.0 Average during 1991 135.0 December 1991 162.0