Data Set E1 -Using Data Set E1,what Would Be the Forecast for Period

question 24

Multiple Choice

Data Set E1
$$\begin{array} { c c } \text { Periqd } &\text { Sales Volume } \\1 & 10000\\2 & 12400\\3 & 14250 \\4 & 15750 \\5 & 20500 \\6 & 18500\\7 &15750 \\8 & 20500 \\9 & 21500\\10&22550\end{array}$$

-Using Data Set E1,what would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000.Use a smoothing constant of a = 0.4 (Choose the closest answer.)

• A) 14575
• B) 26100
• C) 16600
• D) 19700

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Definitions:

Capital Balances

Refers to the amount of money that the owners of a company have invested in the business or retained from profits over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Closing the Revenue

The process of finalizing all revenue accounts and transferring their balances to permanent accounts at the end of an accounting period.

Capital Account

An account on the balance sheet representing the cumulative amount of investment in the business by the owners or shareholders, plus retained earnings.