The quarterly sales for Powder Corporation for the period from the first quarter of 2002 through the second quarter in 2005 are as follows:

Powder Corporation’s products include chemicals, metal products, and ammunition.

a. Plot these sales over time.

b. Do you detect any seasonality in Powder’s sales? What do you envision to be Powder’s pattern of cash flows from operations?

c. Looking at your graph, what sales do you predict for Powder for the third quarter of 2005?

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Quarter Sales in Millions Quarter Sales in Millions 1Q02 $671 4Q03 $640 2Q02 658 1Q04 561 3Q02 580 2Q04 568 4Q02 600 3Q04 551 1Q03 636 4Q04 595 2Q03 660 1Q05 614 3Q03 656 2Q05 633