Big Time University has a football stadium that seats up to 80,000 fans. Details Include: Six home games each year. Season passes are sold for $400 each. All 60,000 season passes are sold over the period January through August (prior to the season). Cash is received at the time of the sale. The six home games consist of two In September, three In October, and one in November. As the new Assistant Athletic Director, you are preparing the football budget for the upcoming season. To assist in that preparation you have assembled data regarding the past season. The bar graphs show the total cash received from season pass sales and sales revenue recognized by the university each month. The line graph plots the balance of the Deferred Revenue account over the year. Cash Received, Deferred Revenue, and Revenue Recognized $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash Received: Season Pass Sales Sales Revenue Recognized -Deferred Revenue Click here to open the graph(s) in a new tab. Required: 1. In which month were the most season passes sold? 2. In which month was the most sales revenue recognized? 3. Based on the graph, which statement best summarizes when revenue is recognized? 4. What happens to the balance of Deferred Revenue when cash is received for a season pass prior to the season? 5. What is the total amount of Deferred Revenue by the end of August once all 60,000 season passes are sold for $400 each? 6. What happens to the balance of Deferred Revenue when games are played? 7. What will be the balance of Deferred Revenue after the final home game is played in November?