Suppose a Firm Has Had the Historical Sales Figures Shown

question 12

Multiple Choice

Suppose a firm has had the historical sales figures shown as follows.What would be the forecast for next year's sales using the average approach if it was determined that 2008 is a "stale" year?

• A)$1,000,000
• B)$1,740,000
• C)$1,925,000
• D)$2,200,000

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Definitions:

Long-Term Investment

Investments in securities or other assets that a company intends to hold for a period exceeding one year to earn revenue or influence business operations.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold for cash.

Trading Investments

Assets that a company holds primarily for the purpose of selling them in the near term to generate income.

Subsidiary Company

A company that is controlled by another company, known as the parent company, through majority ownership or significant influence.