Question: I am trying to understand sales patterns and explore the possibility of forecasting sales using the extrapolation method. In the beginning, I need help with
- I am trying to understand sales patterns and explore the possibility of forecasting sales using the extrapolation method. In the beginning, I need help with creating a scatter plot of quarterly sales for the two companies, with the primary y-axis for Boeing sales and a secondary y-axis for Apple. A brief discussion on observations is required that can address the following questions.
a. Are there any time trends, seasonal patterns, cyclical patterns, or sudden changes in the time series sales for each company? b. Are these patterns you observed in a) consistent with the nature of the business for these two companies? c. If I have to forecast quarterly sales for 2022-2023 using the extrapolation method, what sample period would you choose to establish sales patterns for each company? d. Is extrapolation a good approach?
- From the annual data on several financial performance indicators for Boeing Co. I need to find out the relationship between sales and other performance indicators and use the findings as a guide to help create pro forma financial statements for the company. These performance indicators are total assets, capx (capital expenditure), current portion of LT (Long-term) debt, LT debt, R&D, and SG&A. a. Run a simple linear regression model of each performance indicator on sales, plot the data and fitted line by choosing "Line Fit Plots" under RegressionResiduals. b. Briefly discuss your results. Based on your analysis, will it be appropriate to use the "% of sales" method to forecast these performance indicators? For which ones this method is more appropriate? For which ones this method will not work properly?
| Quarterly Sales data for Boeing and Apple, 1995-2021 | ||
| Date | BOEING CO | APPLE INC |
| 3/31/95 | 5037 | 2652 |
| 6/30/95 | 5558 | 2575 |
| 9/30/95 | 4381 | 3003 |
| 12/31/95 | 4539 | 3148 |
| 3/31/96 | 4293 | 2185 |
| 6/30/96 | 12174 | 2179 |
| 9/30/96 | 9009 | 2321 |
| 12/31/96 | 9977 | 2129 |
| 3/31/97 | 10359 | 1601 |
| 6/30/97 | 12343 | 1737 |
| 9/30/97 | 11371 | 1614 |
| 12/31/97 | 11727 | 1578 |
| 3/31/98 | 12945 | 1405 |
| 6/30/98 | 13389 | 1402 |
| 9/30/98 | 12721 | 1556 |
| 12/31/98 | 17099 | 1710 |
| 3/31/99 | 14392 | 1530 |
| 6/30/99 | 15122 | 1558 |
| 9/30/99 | 13279 | 1336 |
| 12/31/99 | 15200 | 2343 |
| 3/31/00 | 9910 | 1945 |
| 6/30/00 | 14841 | 1825 |
| 9/30/00 | 11877 | 1870 |
| 12/31/00 | 14693 | 1007 |
| 3/31/01 | 13293 | 1431 |
| 6/30/01 | 15516 | 1475 |
| 9/30/01 | 13687 | 1450 |
| 12/31/01 | 15702 | 1375 |
| 3/31/02 | 13821 | 1495 |
| 6/30/02 | 13857 | 1429 |
| 9/30/02 | 12690 | 1443 |
| 12/31/02 | 13701 | 1472 |
| 3/31/03 | 12199 | 1475 |
| 6/30/03 | 12717 | 1545 |
| 9/30/03 | 12184 | 1715 |
| 12/31/03 | 13156 | 2006 |
| 3/31/04 | 12903 | 1909 |
| 6/30/04 | 13088 | 2014 |
| 9/30/04 | 13152 | 2350 |
| 12/31/04 | 13314 | 3490 |
| 3/31/05 | 12681 | 3243 |
| 6/30/05 | 14684 | 3520 |
| 9/30/05 | 12355 | 3678 |
| 12/31/05 | 13901 | 5749 |
| 3/31/06 | 14264 | 4359 |
| 6/30/06 | 14986 | 4370 |
| 9/30/06 | 14739 | 4837 |
| 12/31/06 | 17541 | 7115 |
| 3/31/07 | 15365 | 5264 |
| 6/30/07 | 17028 | 5410 |
| 9/30/07 | 16517 | 6217 |
| 12/31/07 | 17477 | 9608 |
| 3/31/08 | 15990 | 7512 |
| 6/30/08 | 16962 | 7464 |
| 9/30/08 | 15293 | 7895 |
| 12/31/08 | 12664 | 11880 |
| 3/31/09 | 16502 | 9084 |
| 6/30/09 | 17154 | 9734 |
| 9/30/09 | 16688 | 12207 |
| 12/31/09 | 17937 | 15683 |
| 3/31/10 | 15216 | 13499 |
| 6/30/10 | 15573 | 15700 |
| 9/30/10 | 16967 | 20343 |
| 12/31/10 | 16550 | 26741 |
| 3/31/11 | 14910 | 24667 |
| 6/30/11 | 16543 | 28571 |
| 9/30/11 | 17727 | 28270 |
| 12/31/11 | 19555 | 46333 |
| 3/31/12 | 19383 | 39186 |
| 6/30/12 | 20005 | 35023 |
| 9/30/12 | 20008 | 35966 |
| 12/31/12 | 22302 | 54512 |
| 3/31/13 | 18893 | 43603 |
| 6/30/13 | 21815 | 35323 |
| 9/30/13 | 22130 | 37472 |
| 12/31/13 | 23785 | 57594 |
| 3/31/14 | 20465 | 45646 |
| 6/30/14 | 22045 | 37432 |
| 9/30/14 | 23784 | 42123 |
| 12/31/14 | 24468 | 74599 |
| 3/31/15 | 22149 | 58010 |
| 6/30/15 | 24543 | 49605 |
| 9/30/15 | 25849 | 51501 |
| 12/31/15 | 23573 | 75324 |
| 3/31/16 | 22632 | 50557 |
| 6/30/16 | 24755 | 42358 |
| 9/30/16 | 23898 | 46852 |
| 12/31/16 | 23286 | 78351 |
| 3/31/17 | 21961 | 52896 |
| 6/30/17 | 23051 | 45408 |
| 9/30/17 | 24223 | 52579 |
| 12/31/17 | 24770 | 88293 |
| 3/31/18 | 23382 | 61137 |
| 6/30/18 | 24258 | 53029 |
| 9/30/18 | 25146 | 62900 |
| 12/31/18 | 28341 | 84310 |
| 3/31/19 | 22917 | 58015 |
| 6/30/19 | 21361 | 53809 |
| 9/30/19 | 20010 | 64040 |
| 12/31/19 | 20530 | 91819 |
| 3/31/20 | 16878 | 58313 |
| 6/30/20 | 12358 | 59685 |
| 9/30/20 | 13988 | 64698 |
| 12/31/20 | 15432 | 111439 |
| 3/31/21 | 15247 | 89584 |
| 6/30/21 | 16960 | 81434 |
| 9/30/21 | 15285 | 83360 |
| Annual Data for Boeing, 1995-2020 | ||||||||
| conm | fyear | Sales | Total Assets | CAPX | Current Portion of LT Debt | LT Debt | R&D | SG&A |
| BOEING CO | 1995 | 19515 | 22098 | 629 | 271 | 2344 | 1267 | 2287 |
| BOEING CO | 1996 | 22681 | 27254 | 762 | 13 | 3980 | 1200 | 2274 |
| BOEING CO | 1997 | 45800 | 38024 | 1391 | 731 | 6123 | 1924 | 4111 |
| BOEING CO | 1998 | 56154 | 36672 | 1584 | 869 | 6103 | 1895 | 3888 |
| BOEING CO | 1999 | 57993 | 36147 | 1236 | 752 | 5980 | 1341 | 3385 |
| BOEING CO | 2000 | 51321 | 42028 | 932 | 1232 | 7567 | 1998 | 3776 |
| BOEING CO | 2001 | 58198 | 48343 | 1068 | 1399 | 10866 | 1936 | 4325 |
| BOEING CO | 2002 | 54069 | 52342 | 1001 | 1814 | 12589 | 1639 | 4173 |
| BOEING CO | 2003 | 50485 | 53035 | 741 | 1144 | 13299 | 1651 | 4419 |
| BOEING CO | 2004 | 52457 | 53963 | 978 | 1321 | 10879 | 1879 | 5536 |
| BOEING CO | 2005 | 54845 | 60058 | 1547 | 1189 | 9538 | 2205 | 6433 |
| BOEING CO | 2006 | 61530 | 51794 | 1681 | 1381 | 8157 | 3257 | 7428 |
| BOEING CO | 2007 | 66387 | 58986 | 1731 | 762 | 7455 | 3850 | 7381 |
| BOEING CO | 2008 | 60909 | 53779 | 1674 | 560 | 6952 | 3768 | 6852 |
| BOEING CO | 2009 | 68281 | 62053 | 1186 | 707 | 12217 | 6506 | 9870 |
| BOEING CO | 2010 | 64306 | 68565 | 1125 | 948 | 11473 | 4121 | 7710 |
| BOEING CO | 2011 | 68735 | 79986 | 1713 | 2353 | 10018 | 3918 | 7326 |
| BOEING CO | 2012 | 81698 | 88896 | 1703 | 1436 | 8973 | 3298 | 7015 |
| BOEING CO | 2013 | 86623 | 92663 | 2098 | 1563 | 8072 | 3071 | 7027 |
| BOEING CO | 2014 | 90762 | 99198 | 2236 | 929 | 8141 | 3047 | 6814 |
| BOEING CO | 2015 | 96114 | 94408 | 2450 | 1234 | 8730 | 3331 | 6856 |
| BOEING CO | 2016 | 94571 | 89997 | 2613 | 384 | 9568 | 4627 | 7008 |
| BOEING CO | 2017 | 93392 | 92333 | 1739 | 1335 | 9782 | 3179 | 7273 |
| BOEING CO | 2018 | 101127 | 117359 | 1722 | 3190 | 10657 | 3269 | 7836 |
| BOEING CO | 2019 | 84818 | 133625 | 1834 | 7592 | 20940 | 3219 | 7128 |
| BOEING CO | 2020 | 58656 | 152136 | 1303 | 1961 | 62974 | 2476 | 7293 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
