Question
6b. Sales data for Pegasus & Co. for the period January to June 2016 is as follows: 2016 Actual Sales ($,000,000) Seasonally Adjusted Sales ($,000,000)
6b.Sales data for Pegasus & Co. for the period January to June 2016 is as follows:
| 2016 | Actual Sales ($,000,000) | Seasonally Adjusted Sales ($,000,000) | Index |
| Jan | 150 | 176 | 85.23 |
| Feb | 140 | 175 | 80 |
| Mar | 130 | 173 | 75.14 |
| Apr | 120 | 185 | 64.86 |
| May | 110 | 183 | 60.11 |
| Jun | 190 | 158 | 120.25 |
- The trend equation based on the last 6 months seasonally adjusted data is
Seasonally Adjusted Sales Y = 150 + 10x
Required:
Prepare forecast of actual month sales for next June 2017.
Assume the time value (x) for next June 2017 is 10 and use the seasonal index from last June 2016.
Show your calculation workings.
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
5th Canadian edition
9781259105692, 978-1259103285
