Using the Data Set Below, What Would Be the Forecast

question 19

Multiple Choice

Using the data set below, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast for period 4 is 14000.Use a smoothing constant =0.4 (Choose the closest answer.)

• A) 12660
• B) 13190
• C) 14030
• D) 15220

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Definitions:

Installment Sales Method

An accounting method used to recognize revenue from sales when payments are received in installments over a period of time, instead of at the point of sale.

Gross Profit Percentage

A financial metric calculated by dividing the gross profit by net sales, expressed as a percentage to assess a company's financial health and profit margin.

Accounts Receivable-Year 2

The amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for in the second fiscal year.

Realized Gross Profit

The total profit a company makes from its sales after deducting the cost of goods sold, but only on transactions completed within the reporting period.