The answer & explanation for this question is given in the attachment below.
Answer:
The answer is C: 14300
Note: The actual answer is 14296, <em>and </em>the closest to that was option C.
Explanation:
Formula to calculate forecast using Exponential smoothing:
Where,
= New Forecast 
= Previous period's forecast.
= Smoothing Constant 
= Previous period's Actual Demand.
- Calculating the forecast for period 5:
Data:
Putting <em>values in the formula:</em>
Answer:
Income statement will have an increased expense of $4.8 million and Revenue and cost of goods sold will decrease. In balance sheet the inventory will be decreased by the amount of crib toy inventory available.
Explanation:
Income Statement will show an expense of $4.8 million in this period as the cost of recall of inventory due to health hazard. Also sales and cost of goods sold will decrease by the amount of sales of crib toy in sales and by the amount of crib toys cost in cost of goods sold and will ultimately result in decrease in a gross profit of a company.
In the Balance Sheet the amount of Inventory will be decreased by the amount of crib toys available in stock.
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