Sales forecasts. For the prior three years, sales for National Beverage Company have been $21,931,000 (2011), $23,147,000 (2012), and $24,010,000 (2013). The company uses the prior two years' average 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?
Sales forecasts. For the prior three years, sales for National Beverage Company have been $21,931,000 (2011), $23,147,000 (2012), and $24,010,000 (2013). The company uses the prior two years' average 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 1
![**Sales Forecasts**
For the prior three years, sales for National Beverage Company have been $21,931,000 (2011), $23,147,000 (2012), and $24,010,000 (2013). The company uses the prior two years' average growth rate to predict the coming year's sales.
1. **Sales Growth Rates:**
- What were the sales growth rates for 2012 and 2013?
- To find the growth rate for 2012:
\[(23,147,000 - 21,931,000) / 21,931,000 * 100\]
- To find the growth rate for 2013:
\[(24,010,000 - 23,147,000) / 23,147,000 * 100\]
2. **Expected Sales Growth Rate for 2014:**
- What is the expected sales growth rate using a two-year average for 2014?
3. **Sales Forecast for 2014:**
- Using the average growth rate calculated, predict the sales for 2014.
No graphs or diagrams are included in this text.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F603d35a3-3fd0-4545-9874-8f7a9ef67273%2Fcbc1ae9e-a6bf-46e5-aa94-55acaadcc69b%2Fdsswcrr_processed.png&w=3840&q=75)
Transcribed Image Text:**Sales Forecasts**
For the prior three years, sales for National Beverage Company have been $21,931,000 (2011), $23,147,000 (2012), and $24,010,000 (2013). The company uses the prior two years' average growth rate to predict the coming year's sales.
1. **Sales Growth Rates:**
- What were the sales growth rates for 2012 and 2013?
- To find the growth rate for 2012:
\[(23,147,000 - 21,931,000) / 21,931,000 * 100\]
- To find the growth rate for 2013:
\[(24,010,000 - 23,147,000) / 23,147,000 * 100\]
2. **Expected Sales Growth Rate for 2014:**
- What is the expected sales growth rate using a two-year average for 2014?
3. **Sales Forecast for 2014:**
- Using the average growth rate calculated, predict the sales for 2014.
No graphs or diagrams are included in this text.
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