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Use the provided sets of financial data to complete Exercise and answer this questions. You are the manager of El Yunque Inn. You would like
Use the provided sets of financial data to complete Exercise and answer this questions. 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 Use the provided sets of financial data to complete Exercise and answer this questions. 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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