I am the manager of the Potomac Inn. I would like to pay all of my employees a Christmas bonus totaling $10,000. My owner, Joseph agrees with the incentive reward but wants to make sure the Inn will generate enough cash flow in December to pay the $10,000 and still maintain a minimum of $5,000 cash balance. Based on the following information, prepare a cash budget to determine whether or not I can afford to pay for their Christmas bonus, which will be $10,000 in total.

Also, assume December's starting balance is $0.

nr du s10,600 in total: October $60,000.00 November S80,000.00 December Credit Sales 75% collected in next month 25% collected in two months Cash Sales Credit Purchases-paid next month Cash Purchases Payroll-35% of total sales Service on mortgage per month Insurance-prepaid every 3 months Property tax-due in November $75,000.00 12,500.00 30,560.00 3,116.00 25,375.00 5,000.00 3,000.00 16,390.00 34,580.00 2,159.00 33,736.50 20,590.00 28,650.00 2,489.00 33,456.50 15,000.00