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20 Nov 2004, 17:28
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According to the latest financial figures, the Cyclic Corporation’s profits for the third quarter are up 20% from the same period a year ago.
Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?
a) This year’s profits from the second quarter are also up 20% from the same period a year ago.
b) Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.
c) At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters.
d) In previous years, the third quarter has consistently been the most profitable of the year.
e) This year, the dividend paid to shareholders has been increased by 2 cents a share over last year
Which of the following, if true, would provide the most support for concluding from the financial figures described above that overall profits for the corporation have increased from last year?
a) This year’s profits from the second quarter are also up 20% from the same period a year ago.
b) Last year, the profits came mainly from the Kool division whereas this year profits are coming mainly from the Frieze Division.
c) At the Cyclic Corporation, the third quarter is consistently a very good indicator of profits in the first, second, and fourth quarters.
d) In previous years, the third quarter has consistently been the most profitable of the year.
e) This year, the dividend paid to shareholders has been increased by 2 cents a share over last year
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20 Nov 2004, 21:07
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It's 'C' - if the profits for the third quarter increased and they are a good indication of what is happenning during 1st, 2nd and 4th quarter - this means that the annual profits will also be up.
20 Nov 2004, 23:51
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I agree. C should be the correct answer. We need an explanation which will tell us that the profits are up for the whole year and not just one quarter.
