Suppose a Firm Has Had the Historical Sales Figures Shown

question 17

Multiple Choice

Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using regression to estimate a trend?
$$\begin{array} { c c c c c c c } \text { Year } & 2013 & 2014 & 2015 & 2016 & 2017 \\\text { Sales } & \$ 12,000,000 & \$ 11,800,000 & \$ 12,200,000 & \$ 12,400,000 & \$ 12,300,000\end{array}$$

• A) $12,000,000
• B) $12,140,000
• C) $12,300,000
• D) $13,100,000

---

Definitions:

Operating Loss Carryforward

Future reductions in taxable income allowed due to losses incurred in previous periods.

Temporary Differences

Differences between the book basis and tax basis of an asset or liability that result in taxable or deductible amounts in future years.

Intraperiod Income Tax Allocation

The process of assigning income tax expenses or benefits to different components of comprehensive income within the same financial period.

Marginal Income Tax Rate

The percentage of tax applied to your income for each additional dollar of income.