Question

In: Accounting

(CO 3) Using the following information regarding actual sales for Paradise Pools, calculate the seasonal ratio...

(CO 3) Using the following information regarding actual sales for Paradise Pools, calculate the seasonal ratio for June of Year 3.

Sales for Paradise Pools ($000s)

Month

First Year

Second Year

January

84

84

February

80

82

March

88

98

April

100

120

May

150

160

June

200

210

July

240

250

August

220

215

September

180

195

October

160

165

November

120

130

December

92

100

Group of answer choices

1.41

0.77

0.67

1.08

Solutions

Expert Solution

Correct answer is 1.41

Month First Year Second Year Seasonal index Sesonal index Seasonal forcasting trend
January 84 84             0.59             0.56             0.57
February 80 82             0.56             0.54             0.55
March 88 98             0.62             0.65             0.63
April 100 120             0.70             0.80             0.75
May 150 160             1.05             1.06             1.06
June 200 210             1.40             1.39             1.40
July 240 250             1.68             1.66             1.67
August 220 215             1.54             1.43             1.48
September 180 195             1.26             1.29             1.28
October 160 165             1.12             1.09             1.11
November 120 130             0.84             0.86             0.85
December 92 100             0.64             0.66             0.65
Total      1,714.00      1,809.00
Average         142.83         150.75

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