Salae foracaete For the nrior thrag years, sales for California Cement Company have been $20,045,000 (2011), $21,058,000 (2012), and $22,986,000 (2013). The Overview, question 2 of 6, 0 complete verage growth rate to predict the coming year's sales. What were the sales growth rates for 2012 and 2013? What is the expected - - sales growth rate using a two-year average for 2014? What is the sales forecast for 2014?
Salae foracaete For the nrior thrag years, sales for California Cement Company have been $20,045,000 (2011), $21,058,000 (2012), and $22,986,000 (2013). The Overview, question 2 of 6, 0 complete verage growth rate to predict the coming year's sales. What were the sales growth rates for 2012 and 2013? What is the expected - - sales growth rate using a two-year average for 2014? What is the sales forecast for 2014?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Chapter 12, Question 2
Transcribed Image Text:Sales forecaste Eor the nrior thrag years, sales for California Cement Company have been $20,045,000 (2011), $21,058,000 (2012), and $22,986,000 (2013). The
Overview, question 2 of 6, 0 complete
Pte iverage growth rate to predict the coming year's sales. What were the sales growth rates for 2012 and 2013? What is the expected
sales growth rate using a two-year average for 2014? What is the sales forecast for 2014?
Expert Solution
Step 1
Sales growth rate for 2012 = (sales 2012 - sales 2011) /sales 2011
Step 2
Sales growth rate for 2013 =(sales 2013 - sales 2012) /sales 2012
Expected Sales growth rate for 2014 =(Sales growth rate for 2012 + Sales growth rate for 2013) /2
Sales forecast for 2014 = Sales for 2013 * (1+ growth rate for 2014)
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