The Following Questions Use the Data Below

question 3

Essay

The following questions use the data below.
A store wants to predict quarterly sales. The owner has collected 3 years of sales data and wants your help in analyzing the data. He wants to use Winter's method to forecast sales.

-Refer to Exhibit 11.21. The store wishes to use Solver to find the optimal values for cell E6. Provide the following Risk Solver Platform (RSP) settings.
Objective Cell:
Variables Cells:
Constraints Cells:

---

Definitions:

Accounts Receivable

Amounts outstanding from customers to a company for goods or services provided but still unpaid.

Sales on Credit

Sales on Credit refer to transactions where the buyer is allowed to pay for goods or services at a later date, making the sale based on trust that payment will be made in the future.

Lockbox Plan

A cash management tool in which incoming cheques for a firm are sent to post office boxes rather than to corporate headquarters. A local bank will collect the contents of the lockbox and deposit the cheques into the company’s local account.

Net Positive Float

The excess of funds available for use due to the time difference between when a check is deposited and when it clears.