The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index...

Question

Question

The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index...

The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index for urban goods (CPI-U).

7.1 Calculate the constant dollar revenues for 2010 in 2013 dollars.

Year	Revenues (in thousands)	Average CPI-U	Constant Dollar Revenues in 2013 Dollars
2010	$42,588	219
2011	$60,138	226
2012	$65,875	230
2013	$55,656	233

		$55,656
		$45,310.50
		$50,678.50
		$43,895

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

2010 revenues = $42,588

Average CPI-U of 2010 = 219

Average CPI-U of 2013 = 233

The constant dollar revenues for 2010 in 2013 dollars = 2010 revenues x Average CPI-U of 2013/Average CPI-U of 2010

= 42,588 x 233/219

= $45,310.50

Second option is correct option.

Kindly comment if you need further assistance. Thanks‼!

Add a comment

Answer 2

Similar Homework Help Questions

The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index...

The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index for urban goods (CPI-U). Year Revenues (in thousands) Average CPI-U Constant Dollar Revenues in 2013 Dollars 2010 $42,588 219 2011 $60,138 226 2012 $65,875 230 2013 $55,656 233 7.4 What was the percentage growth rate in revenue during 2013 *after* adjustment for inflation? -15.5% -16.6% 20% -15.8%
3. The Consumer Price Index (CPI) represents the average price of goods that households consume. Many...

3. The Consumer Price Index (CPI) represents the average price of goods that households consume. Many thousands of goods are included in such an index. Here consumers are repre- sented as buying only food (pizza) and gas as their basket of goods. Below is a representation of the kind of data the Bureau of Economic Analysis (BEA) collects to construct a consumer price index. In the base year, 2008, both the prices of goods purchased and the quantity of goods...
plz solve step by step and clearly show which formula you used Q1 The Consumer Price...

plz solve step by step and clearly show which formula you used Q1 The Consumer Price Index is a measure of the average price of goods that a typical household consumes. To calculate the CPI, a basket of 700 goods and services that reflects the U.K. Society's buying habits is used to construct the index. Assume that U.K. Consumers buy only meat and movie tickets as their basket of goods and services. Below is a representation of the kind of...

Using the Consumer Price Index (CPI) detailed in the table below, Year CPI CPI Year 2003...

Using the Consumer Price Index (CPI) detailed in the table below, Year CPI CPI Year 2003 1989 1990 1991 1992 1993 1994 1995 124.0 130.7 136.2 140.3 144.5 148.2 152.4 156.9 160.5 163.0 2004 2005 2006 2007 2008 2009 2010 184.0 188.9 195.3 201.6 207.3 215.3 214.5 218.1 224.9 229.6 233.0 236.7 237.0 240.0 1996 1997 1998 1999 2000 2011 2012 2013 2014 166.6 172.2 177.1 179.7 2001 2002 2015 2016 Instructions: Enter your responses rounded to one decimal place...
21. In 2012, newspapers reported that the annual Consumer Price Index in 2011 was 120.0. From...

21. In 2012, newspapers reported that the annual Consumer Price Index in 2011 was 120.0. From this, we can conclude that a typical market basket in 2011 more than the same market would have cost basket purchased in a. 20%; the base year b. 120%; the base year c. 120%; 2010 d. 20%; 2010 22. The table below gives information on the the prices of three common school supplies in 2010 and 2011 and the quantities of each school supply...
The following information is available concerning the inventory of Carter Inc.: Units Unit Cost 206 $9...

The following information is available concerning the inventory of Carter Inc.: Units Unit Cost 206 $9 Beginning inventory Purchases: March 5 305 10 June 12 403 11 August 23 255 12 October 2 152 14 During the year, Carter sold 1,001 units. uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for each of the following three methods: In your calculations round average unit cost to the nearest cent, and round all other calculations...

The following financial information is available for International Technologies, Inc.: Consolidated Statements of Ops (USD $)...

The following financial information is available for International Technologies, Inc.: Consolidated Statements of Ops (USD $) In Thousands Dec. 27, 2014 Dec. 28, 2013 Dec. 29, 2012 NET SALES $1,097,788 $929,810 $719,204 Cost of sales $839,946 $698,771 $542,700 GROSS PROFIT $257,842 $231,039 $176,504 Selling and administrative expenses $251,591 $205,797 $171,420 Other operating expense, net $2,441 $1,334 $184 Facility consolidation expenses $14,888 $0 $0 Impairment of assets $3,059 $0 $0 OPERATING INCOME (LOSS) ($14,137) $23,909 $4,901 Interest expense $11,615 $10,141 $8,494...
An economist with a major bank wants to learn, quantitatively, how much spending on luxury goods and services can be explained based on consumers’ perception about the current state of the economy and...

An economist with a major bank wants to learn, quantitatively, how much spending on luxury goods and services can be explained based on consumers’ perception about the current state of the economy and what do they expect in the near future (6 months ahead). Consumers, of all income and wealth classes, were surveyed. Every year, 1500 consumers were interviewed. The bank having all of the data from the 1500 consumers interviewed every year, computed the average level of consumer confidence...
An economist with a major bank wants to learn, quantitatively, how much spending on luxury goods and services can be explained based on consumers’ perception about the current state of the economy and...

An economist with a major bank wants to learn, quantitatively, how much spending on luxury goods and services can be explained based on consumers’ perception about the current state of the economy and what do they expect in the near future (6 months ahead). Consumers, of all income and wealth classes, were surveyed. Every year, 1500 consumers were interviewed. The bank having all of the data from the 1500 consumers interviewed every year, computed the average level of consumer confidence...

An economist with a major bank wants to learn, quantitatively, how much spending on luxury goods and services can be explained based on consumers’ perception about the current state of the economy and...

An economist with a major bank wants to learn, quantitatively, how much spending on luxury goods and services can be explained based on consumers’ perception about the current state of the economy and what do they expect in the near future (6 months ahead). Consumers, of all income and wealth classes, were surveyed. Every year, 1500 consumers were interviewed. The bank having all of the data from the 1500 consumers interviewed every year, computed the average level of consumer confidence...

The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index...

Homework Answers

Add Answer to:
The following information was available concerning the revenues of Caterpillar, Inc. and the consumer price index...

Post as a guest

Earn Coins