Toys "R" Us is the biggest toy store chain in the United States, with significant operations outside the United States as well. The following quarterly financial data were taken from the 2007 annual report of Toys "R" Us.

1. Does Toys "R" Us have any seasonal pattern in its sales?
2. Compute gross profit (or margin) percentage (Gross margin/Sales) for each quarter for fiscal years 2006 and 2007. Is the gross profit percentage in the fourth quarter substantially different from other quarters?
3. Assume that first-quarter sales for fiscal 2008 are $2,700 million. What is your prediction of fourth-quartersales?

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Third First Quarter Fourth Quarter Second Quarter $2,605 936 Quarter 2007 Net Sales 2007 Gross Margin 2007 Net Earnings/(Loss) 2006 Net Sales. 2006 Gross Margin 2006 Net Earnings/(Loss) $5,827 1,984 312 5,679 ,854 224 $2,58I $2,781 910 (41) 2.405 849 (45) 977 (76) 2,534 861 41 (42) 2432 848