Knowing the Seasonal Pattern in the Form of Indexes Allows

question 12

True/False

Knowing the seasonal pattern in the form of indexes allows the retailer to deseasonalize sales. This is accomplished by dividing the actual sales for a month by the seasonal index for that month.

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Definitions:

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock, calculated as net income divided by the number of shares.

Net Income

A financial metric indicating the amount of revenue that remains as profit for a period after all expenses and taxes have been paid.

Common Stock

A form of investment indicating a stake in a corporation, which bestows upon its owners the right to vote and receive a portion of the company's earnings through dividends.

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.