Marina Hotel is a 170-room hotel and below is the forecasted Revenues for the upcoming three months. You are planning to renovate the hotel, which will cost $1,200,000.

	April	May	June
Rooms Sold	4080	3570	3468
Rooms Revenue	$489,600	$392,700	$364,140

• Cash sales are estimated to be 30 percent of total sales, and cash from credit sales are received after one month.
• Credit sales from previous month (March) was $360,000.
• Variable costs are estimated to be 25 percent of total sales.
• Fixed costs are estimated to be $125,000 a month.
• Hotel has no loan payments.
• Renovation cost ($1,200,000) will be paid half in May and rest in June.
• Beginning cash balance of Cash is $450,000.

What will be the Net Change in Cash (decrease)/increase in June?

Select one:

a.

($168,097)

b.

$168,097

c.

($431,903)

d.

$431,903