Financial Statement Notes: Quarterly Data

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.

$($Amounts in Thousands$)$First

QuarterSecond

QuarterThird

QuarterFourth

Quarter

YearCompany ANet sales$$186,111$$$177,537$$$203,070$$$213,608$$$780,326$Gross profit$55,45753,64364,02469,374242,498$Company BNet sales$$84,896$$$83,796$$$142,137$$$235,336$$$546,165$Gross profit$53,90052,98366,018104,961277,862$

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.

First

QuarterSecond

QuarterThird

QuarterFourth

Quartera. Company A annual net sales percentAnswer $1$Answer $2$Answer $3$Answer $4$b$.$ Company B annual net sales percentAnswer $5$Answer $6$Answer $7$Answer $8$

c$.$ Which company has the most seasonal business?

Answer $9$Company ACompany B

d$.$ Which Company is Gibson Greetings?

Answer $10$Company ACompany B

Which Company is Hon Industries, Inc.?

Answer $11$Company ACompany B

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

Answer $12$Company ACompany B