The chief accountant at Alliance Corporation in Plano, TX is responsible for forecasting the firm's net cash reserves, which is equal to cash inflow minus cash disbursement, on the basis of the historical records. Relevant data ($1000s) gathered by the accountant over the past three weeks follows:

Week	Cash inflow	Cash disbursement	Net cash reserves
1	16	6
2	60	26
3	44	46

Based on the information provided above, answer the following questions.

1. What is the three-week SMA forecast of the company's net cash reserves for Week 4?

a. $14000

b. -$14000

c. $40000

d. $26000

2. Based on the two-week WMA method with weights of 0.2 and 0.8, what is the forecast of the company's net cash revenue for Week 4?

a. $52000

b. $47200

c. $1733

d. $42000

3. Based on the SES method with a = 0.2 and Week 3 forecasts of cash inflow and cash disbursement being $37,000 and $33,000, respectively, what is the forecast of the company's net cash reserves for Week 4?

a. $1000

b. $ 2800

c. $12400

d. None of the above

Answer rating: 100% (QA)

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