A hotel has 120 rooms. It has 86% occupancy and an average daily rate (ADR) of $125 in April and is forecasting 88% occupancy and an averagedaily rate (ADR) of $130 for May. Hotel's collection pattern for sales is as follows: 15% of sales are cash and the remaining 85% are invoiced totour groups. For credit sales, 60% is collected in the month of sale and 40% is collected in the month following the sale.How much is the hotel's forecasted Revenue in May?O a. $452,865O b. $452,658Oc $425,856O d. $425,568

Revenue refers to the amount received by the company from selling goods and services to the…

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How much is the hotel's forecasted Revenue in May?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A hotel has 120 rooms. It has 86% occupancy and an average daily rate (ADR) of $125 in April and is forecasting 88% occupancy and an average
daily rate (ADR) of $130 for May. Hotel's collection pattern for sales is as follows: 15% of sales are cash and the remaining 85% are invoiced to
tour groups. For credit sales, 60% is collected in the month of sale and 40% is collected in the month following the sale.
How much is the hotel's forecasted Revenue in May?
O a. $452,865
O b. $452,658
Oc $425,856
O d. $425,568

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