The Following Financial Data Relate to Bandara Pty Ltd for the Years

question 16

Essay

The following financial data relate to Bandara Pty Ltd for the years ended 30 June Year 3 and 30 June Year 2.
Additional information
The debtors figure at 30 June Year 1 was $78 000 (net). The inventory figure at 30 June Year 1 was $130 000. The company provides its credit customers 30 days to pay. The average inventory turnover for the industry in which the company operates is 101 days.

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Definitions:

Quadratic Trend Line

A parabola that best fits the data in a scatterplot, used to model relationships that follow a quadratic pattern, showing accelerations or decelerations in trends.

Mean Absolute Deviation

A measure of variability that calculates the average distance between each data point and the mean of the data set.

Actual Values

The observed or measured values in a dataset, as opposed to predicted or estimated values.

Forecast Values

The projected or predicted numerical values in the future based on current and historical data analysis.