Budgeting  Forcasting
Gkirk79
Registered Posts: 8 Regular contributor ⭐ 😼 ⭐
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
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
0
Comments

I'm studying budgeting right now and I don't get it either. Feeling really stupid now.
The total projected sales as per the answer = 2,205,000 per annum which is certainly not a 20% growth on the previous year *boggle*0 
Are you using Kaplan study book as well ?
Have you seen the example on pg 102 / 103?
I am trying to see what I am missing0 
Not using the Kaplan books sorry  I have Osbourne, but I've had similar questions in my texts. The technique I usually use doesn't work here though so ... I don't know !0

This looks more like it:
Quarter £
Q1... 1,230,000
Q2... 1,250,000
Q3... 1,335,000
Q4..oo. 985,000
Total. 4,800,0000 
Hi Sandy
Thank you for your help how have Kaplan calculated the following answers
Q1 £585,000
Q2 £570,000
Q3 £540,000
Q4 £505,000
Are these errors ?0 
is there any more details to teh question?0

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 r sales epresent the new value foe
Please note that some answers provided by Kaplan are completely wrong!!!!
Cheers
Rekha0 
#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
Rekha0 
Hi Sandy
Thank you for your help how have Kaplan calculated the following answers
Q1 £585,000
Q2 £570,000
Q3 £540,000
Q4 £505,000
Are these errors ?
I think you know they are
Good for you.
I takes confidence to recognise an error in a book, and that confidence comes from understanding the topic well.
I assure you, there will be people too scared to attempt an answer before looking at what the book says the answer is.
You can be proud that you are not one of them.0
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