28-Alice generated sales of $82,000, $80,000, $81,000, and $77,000 for the past three weeks. Using a four-week moving average what is the forecast sales for the coming week?

Group of answer choices

$20,000

$40,000

$60,000

Cannot be determined from the information provided.

Wait! It's $80,000.

29-Santa thanks the Mad Hatter and Alice in Wonderland for the information. Santa says, "Several interesting characters will join us to discuss Cash Management, Internal Control, and Capital Budgeting."

Snow White was in trouble. The Seven Dwarfs were cash poor. She needed cash to pay the annual operating costs for Snow White's Castle and Conference Center. She borrowed $2,000,000 for five years at an annual interest rate of 15% from Evil Queen Bank, which required a $200,000 compensating balance. What was the effective interest rate for the loan? (Rounded to the nearest tenth of one percent)

Group of answer choices

13.6%

15.0%

16.7%

18.8%

Scrooge McDuck tells us that there are six factors that management should consider when investing excess cash. His nephew, Ebenezer, tells us that Return, Size, and Time are three of these factors. Which of the following best describes the three remaining factors?

Group of answer choices

Risk, Liquidity, and Cost

Generally Accepted Accounting Principles (GAAP), Financial Accounting Standards Board (FASB), Cost-Volume-Profit Analysis.

Price elasticity of Demand, Variance Analysis, and Revenue Management

Cost, Qualitative Forecasting Techniques, and the Lockbox System. Flag question: Question 31 Question 312 pts Winnie the Pooh is thinking about honey and trying to remember something about float. Owl says "float is the time between the subtraction or addition of cash to the company's books and the actual subtraction or addition to the company's bank account." Owl also reminds Pooh that there are two basic types of float: Payment float and Collection float. Lastly, Owl tells Pooh that management should try to _________________.

Group of answer choices

Decrease Payment float and decrease Collection float.

Decrease Payment float and increase Collection float.

Increase Payment float and decrease Collection float.

Increase Payment float and increase Collection float. Flag question: Question 32 Question 322 pts Jane, the owner of the Jungle Adventure Tours, is considering a lockbox system for some of her accounts receivable collections. She can program her computer to send statements with different return addresses depending on the amount of the balance. The bank charges $.75 per item for lockbox service. Jane can invest cash with the bank at an annual interest rate of 3.65%. She has estimated that using the lockbox would speed up collections by 5 days. What is the break-even amount-that is, the amount at which Jane would be indifferent as to whether a customer sent the check directly to Jungle Adventure Tours or to the post office lockbox? (Rounded up to the nearest $1.00, reminder, keep your calculator set to 4 decimal places)

Hint: B = Bank Charge per item [(Interest Rate/365) X T]

Group of answer choices

$500

$1,500

$2,500

$3,500 Flag question: Question 33 Question 332 pts Tarzan asks, "Which of the following approaches to cash budgeting is useful when forecasting for periods longer than six months?"

Group of answer choices

Cash receipts and disbursements approach.

FASB approach

Payback approach

Adjusted net income approach Flag question: Question 34 Question 342 pts Through increased collection efforts and various disbursement techniques, the Sleeping Beauty Castle is able to effectively hold on to its cash for four days longer than in the past. The impact is that its average cash balance has increased from $5,000 to $10,000. What is the additional value of this increased cash balance, assuming it is invested at 10% interest?

Group of answer choices

$100

$250

$500

$2,000 Flag question: Question 35 Question 352 pts Minnie Mouse reminds us that working capital is defined as: Group of answer choices

Current liabilities minus current assets.

Equity minus liabilities.

Current assets minus current liabilities.

Long-term assets minus current liabilities. Flag question: Question 36 Question 362 pts Mickey tells us that The Mouse House Hotel has just purchased a new pizza oven that bakes cheese inside the pizza crust. The cost of this piece of equipment is $300,000 and the vendor has offered terms of 2/10, n/30. What is the effective interest rate of the cash discount? Assume 365 days in the year.

Hint: Effective Interest Rate = Cash Discount X Days in Year

Invoice Amount - Cash Discount Difference Between End of Discount Period and Final Due Day

Group of answer choices

15.1%

18.4%

21.5%

37.2% Flag question: Question 37 Question 372 pts Thumper tells Bambi that there are several operating characteristics of hospitality businesses that make them more vulnerable to theft than many other industries. Which of the following best describes these operating characteristics?

Group of answer choices

The small number of daily cash transactions.

Low employee turnover rates.

The number of cash banks needed for several cashier shifts.

Hospitality operations use many commodities that employees don't need for use in their own homes.

All of the above. Flag question: Question 38 Question 382 pts Daisy Duck asks, "Which of the following are the major objectives of internal control as defined by the American Institute of Certified Public Accountants?" What is your response? Group of answer choices

Safeguarding assets

Promote operational efficiency

Checking the accuracy and reliability of accounting data

All of the above Flag question: Question 39 Question 392 pts Cruella De Vil asks Alonzo to identify the general characteristics of an effective system of internal control. Which of the following best describes his answer? Group of answer choices

Management leadership

Sound practices & Organizational structure

Fixed responsibility and Segregation of duties

Independent performance checks

All of the above Flag question: Question 40 Question 402 pts Roger Rabbit asks us "What is the primary focus of an internal auditor?" Group of answer choices

To assure the reliability of accounting records

To increase operational efficiency

To safeguard assets

All of the above Flag question: Question 41 Question 412 pts Eddie Valiant tells us that according to Hotel Internal Control Guide, three environmental conditions are necessary for fraud and embezzlement to take place. Which of the following best describes these conditions? Group of answer choices

Failure of conscience, Greed, and Access

Greed, Entitlement, and Opportunity

Need, Opportunity, and Failure of Conscience

Time, Opportunity, and Place Flag question: Question 42 Question 422 pts Donald Duck asks us "Which of the following most accurately describes one example of a preventive control and one example of a detective control?" Group of answer choices

Bank reconciliations and authorization policies.

Separation of duties and external audit.

Mandatory vacations and a code of ethics.

External audit and separation of duties. Flag question: Question 43 Question 432 pts Nani decides to teach Lilo the Rule of 72. Nani asks Lilo the following question: according to the Rule of 72, if you invest $40,000 at 8% interest, how long will it be before you have $80,000? What is Lilo's answer?

Group of answer choices

8 years

9 years

12 years

16 years

18 years Flag question: Question 44 Question 442 pts Ariel gives Prince Eric a check of $100,000 to build a salt-water pool in his backyard. Due to coastal commission restrictions, it will be five years before the pool is completed. If Prince Eric invests the entire amount at 8.0% compounded annually for five years, what is the future value of this money (rounded to the nearest one thousand dollars)? Group of answer choices

$100,000

$130,000

$147,000

$216,000 Flag question: Question 45 Question 452 pts On Mulan's 27th birthday her Grandmother Fa tells her that she has set up a trust fund that will pay Mulan $2,000,000 when she turns 67. If the relevant annual discount rate is 6 percent, how much is this fund worth today (rounded to the nearest one thousand dollars)? Group of answer choices

$23,000

$32,000

$97,000

$194,000 Flag question: Question 46 Question 462 pts Based on the information in the previous problem, what happens to the present value if you increase the discount rate?

Group of answer choices

The present value decreases.

There is no change in the present value.

The present value increases.

Well, I don't know. Flag question: Question 47 Question 472 pts Chip tells Babette that _______ is an approach to evaluating capital budgeting decisions based on the number of years of annual cash flow generated by the fixed asset purchase required to recover the investment. The time value of money is not considered in this approach. Group of answer choices

Annuity

Hurdle rate

Net present value

Payback Flag question: Question 48 Question 482 pts Over dinner Beast asks Belle to discuss the decision-making processes involved in capital budgeting. Belle says the concept of ______ is an approach to limiting funds for capital purposes, regardless of the expected profitability of the projects. Under this approach, the combination of projects with the highest net present value (NPV) should be selected. Group of answer choices

Accounting Rate of Return (ARR)

Capital Rationing

Internal Rate of Return

Hurdle Rate Flag question: Question 49 Question 492 pts Maurice tells Belle that the only way for him to escape is to develop a project that exceeds the hurdle rate. Which of the following best describes the hurdle rate? Group of answer choices

The term used for k when finding a present value.

The process of placing future years' income on an equal basis with current year expenditures in order to facilitate comparison.

The change in cash flow of an operation that results from an investment.

The established minimum internal rate of return that must be met or exceeded for a project to be accepted under the internal rate of return model of capital budgeting. Flag question: Question 50 Question 502 pts Lumiere tells us that one of the characteristics of the ______ approaches to capital budgeting is that they consider the time value of money.

Group of answer choices

Accounting Rate of Return (ARR) and Payback

Internal Rate of Return (IRR) and Net Present Value (NPV)

Capital Rationing and Mutually Exclusive

All of the above