Quarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis.

Required

a. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.

b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent.

c. Which company has the most seasonal business? Briefly explain.

d. Which company is Gibson Greetings, Inc.? Hon Industries, Inc.? Briefly explain.

e. Which company's interim quarterly data are probably most useful for predicting annual results? Briefly explain.

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(Amounts in Thousands) First Second Quarter Third Fourth Quarter Quarter Quarter Year Company A Net sales... $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit. 55,457 53,643 64,024 69,374 242,498 Company B Net sales.... $ 84,896 $ 83,796 Gross profit.... 53,900 52,983 $142,137 66,018 $235,336 $546,165 104,961 277,862