Annual Production (In Millions) of Computer Chips in a Large

question 32

Essay

Annual production (in millions) of computer chips in a large electronics company was recorded, as shown below. $$\begin{array} { | c | c c | } \hline \text { Year } & t & \text { Production } \\\hline 1990 & 1 & 26 \\1991 & 2 & 23 \\1992 & 3 & 21 \\1993 & 4 & 25 \\1994 & 5 & 32 \\1995 & 6 & 38 \\1996 & 7 & 43 \\1997 & 8 & 36 \\1998 & 9 & 29 \\1999 & 10 & 25 \\\hline\end{array}$$ a. Calculate the percentage of trend for each time period.
b. Plot the percentage of trend.
c. Describe the cyclical effect (if there is one).

---

Definitions:

Retained Earnings

The portion of a company's profits that are kept or retained rather than distributed to shareholders or used to pay off debt.

Operating Cash Flow

Operating cash flow is the cash generated by a company's regular business operations, reflecting its ability to generate sufficient cash to maintain and grow operations.

Net New Capital Expenditures

The total spending on new fixed assets less any proceeds from the sale of existing assets.