Windows R Us is a nationwide producer and wholesaler of residential windows. They are in the process of analyzing financial data from their most recent year and compiled the following information: Their accountant is putting together a presentation to demonstrate their performance during the year. Which quarter produced the highest average Net Income and what was that value?
A) Quarter 1: $237,455.00
B) Quarter 2: $234,170.50
C) Quarter 3: $228,854.67
D) Quarter 4: $239,486.33

Question

Windows R Us is a nationwide producer and wholesaler of residential windows. They are in the process of analyzing financial data from their most recent year and compiled the following information:  Their accountant is putting together a presentation to demonstrate their performance during the year. Which quarter produced the highest average Net Income and what was that value?
A) Quarter 1: $237,455.00 
B) Quarter 2: $234,170.50 
C) Quarter 3: $228,854.67 
D) Quarter 4: $239,486.33

Quizplus · Accepted Answer

This question requires familiarity with calculating values in Excel and using the AVERAGE function. To solve this problem in the most efficient manner, first solve for Net Income for each month in the appropriate row. The formula for January is: "=B2-C2" placed in cell D2, and it returns an answer of $288,170.00 in that cell. Next, carry the formula down the column for each month, and the results will appear in cells D3-D13. Now, use the AVERAGE function to determine the average net income for each quarter. To calculate the value for quarter 1, use any empty cell and type in the formula "=AVERAGE(D2:D4)" to calculate the average for January through March. The returned value should be $228,735.33. Repeat this for the other 3 quarters. Once you have completed this, you should have the following results: Quarter 2: $192,706.00; Quarter 3: $228,854.67; and Quarter 4: $239,486.33. Quarter 4 has the highest average Net Income (Choice D).

Windows R Us Is a Nationwide Producer and Wholesaler of Residential