ABC Company anticipates its sales being a bit lower than normal in January and February of the coming year due to major road construction on the street where it is located, which will draw away foot traffic from the store. The company anticipates that this will reduce its sales in these two months by 5%. Use the information from Problems 1–2 to update the sales forecast. 

1. ABC Company has the following data for its monthly sales. Complete the % of Annual Sales row. 

2. Using the same data as in Problem 1, assume that ABC Company expects a 10% increase in sales in the coming year (10% more than the $575,000 it had in the past year). Prepare its sales forecast, assuming the company breaks its sales down by month using the same percentages as the actual sales from the past year, which you calculated in the first problem. 

Transcribed Image Text:

Gross Sales % of Annual Sales ABC Company Monthly Income Statements Apr May Jun Jul Aug Sep Oct $40,000 $42,000 $47,000 $56,000 $60,000 $71,000 $53,000 $53,000 $46,000 $37,000 $39,000 $31,000 $575,000 Jan Feb Mar Nov Dec Total