The Quarterly Sales (In Thousands of Copies) for a Specific

question 71

Essay

The quarterly sales (in thousands of copies) for a specific educational software over the past three years are given in the following table.

a.Compute the four seasonal factors (Seasonal Indexes). Show all of your computations.
b.The trend for these data is Trend = 174 + 4 t (t represents time, where t=1 for Quarter 1 of 2003 and t=12 for Quarter 4 of 2005). Forecast sales for the first quarter of 2006 using the trend and seasonal indexes. Show all of your computations.

Recognize the importance of marginal analysis in making economic decisions.

Identify the role of government and policies in modifying behaviors through economic incentives.

Understand how people respond to changes in prices and the availability of resources.

Appreciate the importance of choices and trade-offs in economic theory.

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Definitions:

Accrual Basis

An accounting method that recognizes revenue when earned and expenses when incurred, regardless of when cash is exchanged.

Wages Expense

The cost incurred by a company for the work performed by its employees, reflected in its financial statements.

Wages Payable

An account that shows the total amount of wages earned by employees that the company has not yet paid.

Accounting System

A methodical procedure of accurately and timely recording and organizing financial transactions and information.