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For next month, a hotel manager forecasts revenue of $800,000. 60% of the revenue to be generated in the month will be made to
For next month, a hotel manager forecasts revenue of $800,000. 60% of the revenue to be generated in the month will be made to customers who will not pay their bills within the same month as they are credit customers whose balances due will become part of the hotel's accounts receivable. Accounts receivable to be collected in the month from prior months' sales are estimated to be $200,000. Based on historical expense records, cash disbursements for the coming month will be $475,000. If the hotel has $160,000 in its cash account at the beginning of the coming month, what will be the balance in the cash account at the end of next month h O a. $365,000 O b. $205,000 c. ($205,000) O d. ($365,000)
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