Sales in Gallons YearMagnificent Marvelous 2014424,000 None 2015425,000 None 2016413,000 226,560 2017453,000 259,000 2018440,000 295,700 Projected Selling Price for 2019 per gallon Magnificent Marvelous $14.50 $18.75Magnificent Paint Volume Projection Using Exponential Smoothing YearActual Sales in GallonsWeightWeighted SalesSales Volume Projection for 2019 2014424,0001424,000 2015425,0002850,000 2016413,00031,239,000 2017453,00041,812,000 2018440,00052,200,000 Totals 156,525,000435,000 Marvelous Paint Volume Projection Using Growth Function Known x'sKnown y'sNew x YearStupendousYear 2016226,5602019 2017259,600 2018295,700 Projection of Marvelous 2019 Sales Volume 338, 154 E612345678951110 Projected Sales12Paste7 Projected Sales Volume8 Selling Price1314A1516ArialB I UfxVVMagnificentPaint10BCPaulson Paint, IncSales BudgetFor the Year Ended December 31, 2019A^ AADEMarvelousPaintF||||||||||| |||TotalG|||||||||H|сеHIH

Answered: Sales in Gallons Year…

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

Sales in Gallons
	Year	Magnificent	Marvelous
	2014	424,000	None
	2015	425,000	None
	2016	413,000	226,560
	2017	453,000	259,000
	2018	440,000	295,700

Projected Selling Price for 2019 per gallon
	Magnificent	Marvelous
	$14.50	$18.75

Magnificent Paint Volume Projection Using Exponential Smoothing


	Year	Actual Sales in Gallons	Weight	Weighted Sales	Sales Volume Projection for 2019
	2014	424,000	1	424,000
	2015	425,000	2	850,000
	2016	413,000	3	1,239,000
	2017	453,000	4	1,812,000
	2018	440,000	5	2,200,000

	Totals		15	6,525,000	435,000


Marvelous Paint Volume Projection Using Growth Function

	Known x's	Known y's	New x
	Year	Stupendous	Year
	2016	226,560	2019
	2017	259,600
	2018	295,700

	Projection of Marvelous 2019 Sales Volume

	338, 154

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Sales Budget
For the Year Ended December 31, 2019
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Marvelous
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Expert Solution

Step 1

Sales Projection Using Exponential Smoothing

A forecasting technique called exponential smoothing examines data from certain time periods and produces data free of "noise," enhancing the visibility of trends and patterns. The far more recent sales data are given greater weight by the approach than earlier sales data. For instance, the formula for the method will give your most recent month's earnings more weight than your earnings from the prior year if you wish to use it to examine 12 months' worth of your company's sales revenue.