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You are the manager of El Yunque Inn. You would like to pay all your...

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Accounting

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You are the manager of El Yunque Inn. You would like to pay all your employees a Christmas bonus totaling $10,000 Your owner, Don Papo agrees with your incentive rewards but wants to make sure the Inn will generate enough cash flow in December to pay the $10,000 and still maintain a minimum $5,000 cash balance Based on the following information, prepare a cash budget to determine whether or not you can afford to pay your employees their Christmas bonus, which will be $10,000 in total October November December Credit Sales $ 60,000.00 $ 80,000.00 $ 75,000.00 75% collected in next month $ 45,000.00 $ 60,000.00 $ 56,250.00 25% collected in two months $ 15,000.00 $ 20,000.00 $ 18,750.00 Cash Sales $ 12,500.00 $ 16,390.00 $ 20,590.00 Credit Purchases-paid next month Cash Purchases $ 30,560.00 $ 34,580.00 $ 28,650.00 Cash Purchases $ 3,116.00 $ 2,159.00 $2,489.00 Payroll --35% of total sales $ 25,375.00 $ 33,736.50 $ 33,456.50 Service on mortgage per month $5,000.00 Insurance-prepaid every 3 months $ 3,000.00 Property tax-due in November $ 15,000.00

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