4. Grammy Inc. is constructing its cash budget. Its budgeted monthly sales are $30,000, and they are constant from month to month. 30% of its customers pay in the first month and take the 2.5% discount, while the remaining 70% 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 45% of projected sales for the next month. These purchases are paid immediately. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. What is the net cash flow in a typical month that takes all given information into consideration? *

7 points

a. $12,225

b. $8,775

c. $9,630

d. $10,860

e. None of the above