Instruction 14-3
the Number of Cases of Merlot Wine Sold

question 26

Short Answer

Instruction 14-3
The number of cases of merlot wine sold by a Barossa Valley Winery in an eight-year period follows.
$\begin{array}{ll}\text { Year } &\text { Coses of }\\& \text { Wine } \\2003 & 270 \\2004 & 356 \\2005 & 398 \\2006 & 456 \\2007 & 358 \\2008 & 500 \\2009 & 410 \\2010 & 376\end{array}$


-Referring to Instruction 14-3,exponential smoothing with a weight or smoothing constant of 0.4 will be used to smooth the wine sales.The value of E₂,the smoothed value for 2004 is _______.

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Definitions:

Translation Rate

The rate used to convert financial statements of a foreign operation into the presentation currency of the reporting entity.

Foreign Currency

Currency that is used in a country other than the one where a company or individual is based.

Foreign Exchange

The conversion of one country's currency into another currency.

Functional Currency

The currency of the primary economic environment in which the entity operates and reports its financial statements.