Question 37 2 pts Financial controller of the Mondavi Hotel has the following information about estimated sales revenue and operating expenses for September, October and November. September October November Sales 820,000 845,000 880,000 Operating Expenses 295,000 310,000 330,000 The controller knows that cash sales are 30% of total sales and remaining sales are on credit. For the collection of credit sales, 50% are collected in the month of sales while the remaining 50% is collected in the following month. Mondavi Hotel pays 60% of the operating expenses in cash in the month they incur and remaining 40% is paid in the following month. In addition to this information, the controller is informed that: In October, Mondavi Hotel will replace the range in the main kitchen, which will cost $14,000 and will be paid in cash immediately. Each month, $20,000 will paid to a national bank to reduce an outstanding long-term debt. Mondavi Hotel uses cash receipts and disbursement method for cash budgets. Given the information: In the cash budget of Mondavi Hotel, how much cash receipts will be reported for October? $836,250 $845,000 $253,500 $295,750