You are the manager of the Potomac Inn. You would like to pay all your employees a Christmas bonus totaling $10,000. Your owner, Joseph, 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 infor-mation, 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 25% collected in two months Cash Sales 12,500.00 16,390.00 20,590.00 Credit Purchases—paid next month 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 What are three ways you can better manage your accounts payable? Please explain.