Quarterly Revenues (In $1,000,000's)for a National Restaurant Chain for a Five-Year

question 1

Essay

Quarterly revenues (in $1,000,000's)for a national restaurant chain for a five-year period were as follows:

a.Determine the appropriate seasonal index values for this time series.
b.Determine the appropriate trend value for this time series.
c.Forecast the revenues for the next four quarters.

---

Definitions:

Share Of Stock

Represents ownership in a corporation, giving the holder a claim on part of the company’s assets and earnings.

Discount Rate

The financial rate used to convert future cash flows into their present value during a discounted cash flow analysis.

Cash Flows

The overall volume of cash inflows and outflows within a firm, influencing its liquid assets.

Present Value

The value at present of money or cash flows expected in the future, discounted at a particular rate of return.