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

  1. 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?

  1. 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

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