Financial controller of the Mondavi Hotel has the following information about estimated sales revenue and operating expenses for September, October and November.

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:

If the beginning cash balance for October is $150,000, what would be the ending balance in October?

A movie theater manager believes the average amount of money customers spend on snacks is over $15.

To test the claim, a theater employee tracks the spending of 25 randomly selected customers.

The sample mean is $17.08 with a sample standard deviation of $4.81.

a) What is the Null Hypothesis and the Alternative Hypothesis for the manager’s claim?

b) Assuming the population is normal, should we use the Normal z-test or the Student’s t-test?

(Please answer sub parts: A, B)

The student population at the state college consists of 55% females and 45% males.

A. The college theater department recently staged a production of a modern musical. A researcher
recorded the gender of each student entering the theater and found a total of 385 females and 215 males. Is the gender distribution for theater goers significantly different from the distribution for the general college? (Test at the .05 significance level using CV = 3.84).

B. The same researcher also recorded the gender of each student watching a men’s basketball game in the college gym and found a total of 83 females and 97 males. Is the gender distribution for basketball fans significantly different from the distribution for the general college? (Test at the .05 significance level
using CV = 3.84).

1. Due to the pandemic, the demand for movies in cinemas has fallen. AMC and Cinemark must both close half of their theaters in Lewis and Corinth counties over the next month.

a. Why would it be less profitable for both to close half the theaters in both counties versus one closing Lewis county theaters and the other closing Corinth county theaters?

b. Model a simultaneous game in which AMC and Cinemark choose either Lewis or Corinth to close. What is the equilibrium of this game?

c. What is the equilibrium if AMC was able to make a theater closure decision before Cinemark?

d. You are an economist hired to advise AMC on which theaters to close. Should you ask for time to all the theater traffic data or ask them to announce theater closures today?

Read the following case. Apply your knowledge of the five components of the 2013 COSO IC framework as well as risk, internal controls, and any other Chapter 6 [Parts 1 & 2] topics to speculate whether or not Ron has a chance of carrying out his idea successfully, without being caught, and explain in detail why or why not?

Ron Mitchell is currently working his first day as a ticket seller and cashier at the First Run Movie Theater. When a customer walks up to the ticket booth, Ron collects the required admission charge and issues the movie patron a ticket. To be admitted into the theater, the customer then presents his or her ticket to the theater manager, who is stationed at the entrance. The manager tears the ticket in half, keeping one half for himself and giving the other half to the customer.

While Ron was sitting in the ticket booth waiting for additional customers, he had a "brilliant" idea for stealing some of the cash from ticket sales. He reasoned that if he merely pocketed some of the cash collections from the sale of tickets, no one would ever know. Because approximately 300 customers attend each performance, Ron believed that it would be difficult for the theater manager to keep a running count of the actual customers entering the theater. To further support his reasoning, Ron noticed that the manager often has lengthy conversations with patrons at the door, and appears to make no attempt to count the actual number of people going into the movie house.

GTA Construction Corporation constructed two buildings near the San Andreas fault line. The probability that either of these buildings will experience an earthquake is 4.6 percent. However, if one building experiences an earthquake, the probability that the second building will experience an earthquake is 57 percent. What is the probability (in percent) that both buildings will experience earthquake damage?

IMB Computing creates motherboards for cellphones at their campuses in Seattle and San Diego. The company is worried about computer hackers and hired a consultant to evaluate their risk. The consultant estimated that the San Diego campus has a 12.1 percent chance of being hacked. The consultant also noted that the Seattle location has a 24.4 percent chance of digital hacking. IMB would asks the consultant, what is the probability (in percent) that both campuses will suffer hacking related crime in any given year?

Hishiba Company assembles hard drives and has plants in both the South and the North, spaced about 3,000 miles apart and connected by light rail. Hishiba is worried about local rain causing flooding at their plants. The probability that in any given year a flood will damage the North plant 5.1 percent. The probability that in any given year a flood will damage the South plant is 13 percent. What is the probability (in percent) that at least one of the plants will be damaged by flood in any given year?

Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows: January February March April May June July Number of rooms cleaned 250 160 200 150 300 170 260 Cleaning cost $6,450 $4,060 $5,100 $4,100 $6,760 $4,200 $6,530 How much are estimated monthly variable costs using the high-low method?

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $100  each month for the three-month season. The team pays the players and manager a total of $1000 each month. The team charges $10 for each ticket, and the average customer spends $6 at the concession stand. Attendance averages 30 people at each home game.

The team earns an average of (1)$___ in total revenue (tickets plus share of concessions) for each game and (2) $___ of revenue each season.

With total costs of (3)$____ each season, the team finishes the season with (4)$____ of profit.

A construction company entered into a fixed-price contract to build an office building for $28 million. Construction costs incurred during the first year were $8 million and estimated costs to complete at the end of the year were $12 million. During the first year the company billed its customer $10 million, of which $4 million was collected before year-end. What would appear in the year-end balance sheet related to this contract using the percentage-of-completion method? (Enter your answers in whole dollars.)