Q

Gkirk79
Gkirk79 New MemberRegistered Posts: 8
Hi All

Can anyone help with Q20 in the Kaplan Revision Book (Bedgeting)

This years sales are £4,000,000

Growth trend is expected at 20% per annum

Seasonal variations are as follows:

Q1 + £30,000
Q2 + £50,000
Q3 + £135,000
Q4 - £215,000

I am unsure how answers have been calculated

Q1 £585,000
Q2 £570,000
Q3 £540,000
Q4 £505,000

Comments

  • rekha0303
    rekha0303 New Member Registered Posts: 7
    #8 Today, 13:33
    rekha0303
    New Member Join Date: Jun 2010
    Posts: 3





    Hiya

    This years sales are £4,000,000

    Growth trend is expected at 20% per annum

    Because of the growth it means that now the year sales will be forcasted at 120%

    New Sales = 120% * £4,000,000 = £4,800,000

    Because of the 4 quarters divide £4,800,000 by 4 = 4800000 / 4 = 1,200,000

    Thus

    Q1 + £30,000 + 1,200,000 = +£1,230,000
    Q2 + £50,000+ 1,200,000 =+ £1,250,000
    Q3 + £135,000+ 1,200,000 =+ £1,335,000
    Q4 - £215,000+ 1,200,000 =+ £985000

    Important point for Q4 in this question~ remember there is a minus sign in front of 215000 so instead of adding it to the 1200000 subtract it from 1200000 to get 985000

    Check: 1,230,000 + 1,250,000 + 1,335,000 + 985000 = £ 4,800,000

    Point to remember:

    Growth~ add the given % to 100% to represent the new value for sales

    Negative effect to trend ~ deduct the given % from 100% to represent the new value for sales

    Please note that some answers provided by Kaplan are completely wrong!!!!

    Cheers

    Rekha
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