Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 7 percent per year over the next three years. Current sales are $100,000.Complete the following table by forecasting sales for each of the next three years.YearForecasted Sales(Dollars)1$107,000 2$114,490 3$122,504 If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), the actual annual compound growth rate was:10.76% 13.62% 18.56%

A compound annual growth rate shows the growth on annual basis. It shows the overall growth made by…

Answered: Fred's Hardware and Hobby House expects…

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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Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 7 percent per year over the next three years. Current sales are $100,000.

Complete the following table by forecasting sales for each of the next three years.

Year	Forecasted Sales
(Dollars)
1	$107,000
2	$114,490
3	$122,504

If sales in 2003 were $60,000 and they grew to $100,000 by 2007 (a four-year period), the actual annual compound growth rate was:

10.76%

13.62%

18.56%

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