Evaluate the forecast accuracy of the three methods

Assignment Help Financial Accounting
Reference no: EM131396936

In the pharmaceutical industry select Pfizer, whose common stocks are traded in the US stock markets as your target company. Acquire the company's balance sheet and income statement for the most recent sixteen consecutive quarters.

Directions:

1. Based on the company's consolidated balance sheets and income statements, compile the 16 quarters of selected financial data that you chose for the project. These financial variables are: A ( from consolidated statements of earnings) Sales/revenues, Selling, marketing and administrative expenses, Research expenses, Net Earnings, and B (from consolidated balance sheets) Cash & cash equivalents, Total current assets, Total assets, Total current liabilities, Total liabilities, Total shareholders' equity.

2. Give a concise description of the company in your own words: its history, mission, and future opportunities (3 or 4 paragraphs).

3. Present and describe the sales/revenue data of the company. You may want to use a scatter-gram to display the time patterns of the sales/revenue.

4. Make sales/revenue forecasts for the next two quarters by using the following methods:

a. The Naïve Method

b. Single moving average (let N=4)

c. Single exponential smoothing (let a=0.4)

5. Evaluate the forecast accuracy of the three methods in item 4, by analyzing the magnitudes of errors, i.e. range of errors, MAE (Mean of Absolute Errors), and MSE (Mean of Squared Errors) of each method.

Reference no: EM131396936

Questions Cloud

Find a possible equation for the line : Find a possible equation for the line that is perpendicular to the graph of 5x-3y=15 if the two lines intersect at x=30.
What is the sample size n : Based on a sample of restaurants in a large city, the frequencies are found to be f1 = 5, f2 = 8, f3 = 20, f4 = 32, and f5 = 23. What is the sample size, n? Verify that the sample mean is X¯ = 3.7
Disadvantages of purchasing new packaged software : Discuss your findings as a team, compile them into a report, and submit the report to your instructor.
Find the angles : Two angles are said to be supplementary if their sum is 180 degrees. Suppose you have two supplementary angles such that the second angle is 12 degrees larger than 5 times the measure of the first angle. Find the angles.
Evaluate the forecast accuracy of the three methods : In the pharmaceutical industry select Pfizer, whose common stocks are traded in the US stock markets as your target company. Evaluate the forecast accuracy of the three methods in item 4, by analyzing the magnitudes of errors, i.e. range of errors, ..
Quality of managers and executive coaches : Which of the following is a quality of managers? Executive coaches:
What is the minimum number of participants : Among a sample of 25 participants, what is the minimum number of participants that must be altered to make the sample variance arbitrarily large?
Evaluate the effectiveness of the firms stakeholder in event : Imagine that the company that you researched uses a third-party accounting system. Evaluate the effectiveness of the firm's stakeholder in the event that a third-party accounting system suffers a breach.
How often are the intervals set to take readings : How often are the intervals set to take readings and then evaluate the data? Write a report summarizing your findings, and include a table of links to Web sites that provide additional details.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Record the transactions with corresponding journal entries

Stark Industries reports the following transactions for the month of November. Record the transactions with corresponding journal entries. Stark Industries inventory system is perpetual.

  What is the change in net working capital

What is the Net Working Capital for 2013? What is it for 2012? What is the Change in Net Working Capital (NWC)? Why is an understanding of cash flow so important in the study of finance?

  Determine the best method to allocate of common costs

determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel etc), either by salary or number of employees.

  Create a correct income statement beginning with income

loss on disposal of discontinued music division $20,000. The income tax rate is 40%. Create a correct income statement, beginning with income before income taxes

  Comparative balance sheets and an income statement

comparative balance sheets and an income statement for Namekagon Corporation

  1 specific identification method boston galleries uses the

1. specific identification method. boston galleries uses the specific identification method for inventory valuation.

  Impact the income statement only the balance sheet

During the year 2013, the company had the following activities (note none of these activities should impact the income statement, only the balance sheet):

  A project under consideration has a net present value

A project under consideration has a net present value of $10,000 for a required investment of $60,000. There are no other investment options at this time. However, the assumed discount rate used to calculate the net present value is 20%.

  List out five pieces of information you want to obtain

List out five pieces of information you want to obtain to aid you in your forecast, explaining why this will aid you in your forecast.

  What is minimum acceptable selling price for new product

Tork Corporation is about to announce a new product, J82, whose variable cost is $116.30 per unit and that would require 7.70 grams of a raw material that is the constrained resource in the company. The opportunity cost to use this constrained resour..

  How the first individual is related to the second

For each of the following pairs, indicate how the first individual is related to the second by riting (L) line authority, (S) staff authority, or (N) no authority.

  Estimated ending inventory destroyed in fire

Fosbre Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $208,900, and purchases for January through April totaled $532,600. Sales revenue for the same period were $713,700. Fosbre’s normal gross profit percentage is 35%..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd