We know that for each of the quarters in 1998, Company M earned more money than in the previous quarter. Is it possible to determine the range of the company’s quarterly earnings in 1998?
1. Although we are told the value of the earnings for the 2nd and 3rd quarters, Company M’s 4th quarter earnings could, consistent with statement 1, be any amount that is greater than the 3rd-quarter earnings. Likewise, the company’s 1st-quarter earnings could be any positive amount that is less than the company’s 2nd-quarter earnings. The difference between these two values would be the range, and we see that it cannot be determined; NOT sufficient.
2. We are given the earnings for the 1st and 4th quarters, and we already know that, from quarter to quarter, the earnings in 1998 have always increased. We can thus infer that Company M’s earnings for the 2nd and 3rd quarters are less than the 4th-quarter earnings but greater than the 1st-quarter earnings. The difference between the greatest quarterly earnings and the least quarterly earnings for 1998 is thus the difference between the 4th-quarter earnings and the 1st-quarter earnings—the values $4.9 million and $3.8 million, respectively, that we have been given; SUFFICIENT.