A Seasonal Index for a Monthly Series Is About to Be

question 98

Essay

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data.The three previous July values were 110,135,and 130.The average over all months is 160.What is the approximate seasonal index for July?

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Definitions:

Capital Balances

The amounts shown in a company's financial statements under shareholders' equity, representing the residual interests in the assets of the entity after deducting liabilities.

Goodwill Method

An accounting method used to evaluate the excess of purchase price over the fair value of net identifiable assets acquired in a business combination.

Journal Entries

Recorded transactions in the accounting records of a business that are used to transfer amounts from one account to another, ensuring the ledger remains in balance.

Fair Value

Fair value is an estimate of the market value of an asset, based on its current price in a fair and open market transaction.