Use This Information to Answer the Following Questions -Refer to the Table Above

question 40

Essay

Use this information to answer the following questions.
A hot dog stand owner has collected the following time series data on the number of hot dogs sold over the last 12 quarters.
$$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Quarter } & \text { Demand } \\\hline 1 & \text { Winter } & 29 \\\hline 1 & \text { Spring } & 65 \\\hline 1 & \text { Summer } & 56 \\\hline 1 & \text { Fall } & 45 \\\hline 2 & \text { Winter } & 23 \\\hline 2 & \text { Spring } & 57 \\\hline 2 & \text { Summer } & 48 \\\hline 2 & \text { Fall } & 32 \\\hline 3 & \text { Winter } & 14 \\\hline 3 & \text { Spring } & 55 \\\hline 3 & \text { Summer } & 52 \\\hline 3 & \text { Fall } & 25 \\\hline\end{array}$$
-Refer to the table above.Use a linear trend equation to forecast next quarterly sales.

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Definitions:

Cash Payback Period

The time period required for the cash inflows from a capital investment project to cover the initial cash outlay.

Net Cash Inflow

The surplus of cash revenues over cash expenses in a given period, indicating the liquidity added to an entity.

Useful Life

The estimated duration for which an asset is expected to be functional and economically feasible for its intended purpose.

Annual Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of taxes and interest charges.