In this lab, you will:

Required:

1. Using Excels Forecast Sheet, forecast future sales for Microsoft. 2. Using Excels Forecast Sheet, forecast future income before extraordinary items for Microsoft.

Ask the Question: What will Microsofts quarterly sales and earnings for 2018 and 2019 be given times series (past quarterly sales and earnings from 20102017)?

Master the Data: Looking at Microsofts financial statements, we accumulate the values of quarterly sales and earnings from 20102017.

Software needed

• Excel
• Screen capture tool (Windows: Snipping Tool; Mac: Cmd+Shift+4)

Data: Excel File Lab 8-6 Alt Data.xlsx.

Perform the Analysis: Refer to Lab 8-6 Alternate in the text for instructions and Lab 8-6 steps for each of the lab parts.

Share the Story: We have now developed a forecast for sales and income before extraordinary items.

rev: 09_21_2020_QC_CS-228676

Required:

1. Which has a greater distance between the lower and upper confidence bound for Microsoft?

multiple choice 1

• Income before extraordinary items

• Sales

2. For Microsofts income before extraordinary items and the quarter 7/1/2020, what is the distance between the lower and upper confidence bound?

multiple choice 2

• 365.50

• No difference between lower and upper confidence bound

• 11,611.28

• 10,880.30

3. What is the forecasted amount of Microsofts income from extraordinary items for the 10/1/2019 time period?

multiple choice 3

• 5,364.64

• 5,326.88

• 5,440.15

• 31,546.71

4. What is the forecasted amount of Microsofts sales for the 10/1/2019 time period?

multiple choice 4

• 27,744.51

• 29,440.27

• 31,546.71

• 5,326.88

5. Looking at the past trend of sales or income before extraordinary items for Microsoft, which one was less volatile, sales or income before extraordinary items?

multiple choice 5

• Income Before Extraordinary Items

• Sales