Bell Greenhouses has estimated its monthly demand for potting soil to be the following: Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: MONTH ADJUSTMENT FACTOR (%) March +2 June +15 August +10 December -12 Forecast Bell Greenhouses' demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast. YEAR FORECAST ACTUAL 2007 500 515 2006 452 438 2005 404 420 2004 356 380

Bell Greenhouses has estimated its monthly demand for potting soil to be the following: Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: MONTH ADJUSTMENT FACTOR (%) March +2 June +15 August +10 December -12 Forecast Bell Greenhouses' demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast. YEAR FORECAST ACTUAL 2007 500 515 2006 452 438 2005 404 420 2004 356 380

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Bell Greenhouses has estimated its monthly demand for potting soil to be the following:
Assume this trend factor is expected to remain stable in the foreseeable future. The following table
contains the monthly seasonal adjustment factors, which have been estimated using actual sales data
from the past five years:
MONTH
ADJUSTMENT FACTOR (%)
March
+2
June
+15
August
+10
December -12
Forecast Bell Greenhouses' demand for potting soil in March, June, August, and December 2007.
If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in
five different years, determine the seasonal adjustment factor to be used in making an April 2008
forecast.
YEAR FORECAST ACTUAL
2007 500
515
2006 452
438
2005 404
420
2004 356
380

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