The following table shows total retail sales for the city of Taxylvania for the

Question

The following table shows total retail sales for the city of Taxylvania for the last 11 years. The city is considering implementing a 1% retail sales tax in 2016. Estimate collections from a 1% retail sales tax for each of the next 3 years (2016 - 2018). Note, the data provided in the chart is total retail sales. We are forecasting a tax that is equal to 1% of all retail sales.

Year                   Total Retail Sales

2005                        40,826,702

2006                        42,045,324

2007                        43,414,770

2008                        44,748,197

2009                  45,960,890

2010                47,382,130

2011                        48,897,359

2012             50,161,860

2013             51,728,282

2014                 53,256,193

2015                       54,417,181

2016                             ???

2017                             ???

2018                   ???

What is the estimate for 2017 sales tax revenues? ____________

Explanation / Answer

Calculation can be done with 11 Years Moving Average:

Average Sales = 522,838,888 / 11 = $47,530,808

So, the expected Sales for 2016 is $47,530,808

Sales Tax for 2016 = 47,530,808 x 1% = $475,308.08

Expected Sales for 2017 = 522,838,888 - 40,826,702 + 47,530,808 = 529,542,994 / 11 = $48,140,272.20

For 2017 Sales Tax: 48,140,272.20 x 1% = $481,402.72

Year Sales ($) 2005 40,826,702 2006 42,045,324 2007 43,414,770 2008 44,748,197 2009 45,960,890 2010 47,382,130 2011 48,897,359 2012 50,161,860 2013 51,728,282 2014 53,256,193 2015 54,417181 Total 522,838,888

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.