Cash MGT Osborne Workbook Chap 3

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MWAUGH1983
MWAUGH1983 Registered Posts: 420 Dedicated contributor 🦉
Hi,

Was wondering if people could advise the answer on the following.

Question 1 B

I am asked to find the forecast trend for january and variation - im finding this a bit tricky.

Would appreciate if anyone could advise?

Cheers
Martin

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  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Hello Martin

    Can you type the full question out as some of us don't have the Osborne books, or is it too long?

    Thanks.


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • MWAUGH1983
    MWAUGH1983 Registered Posts: 420 Dedicated contributor 🦉
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    No bother Jo

    Details as follows:

    Month Sales Trend Month Var
    Vol


    Aug 56,160

    Sept 35,640 41,040 -5,400

    Oct 31,320 42,120 -10,800

    Nov 59,400 43,200 16,200

    Dec 38,880

    Monthly sales Vol 1,080

    BOLD ARE ANSWERS WHICH ARE WORKED OUT

    Additional info

    Price p/unit has been set at £5
    Monthly pur 60% of the value of the forecasted sales
    Seasonal var operates on a 3 monthly repeating cycle


    Then it asks to get the forecaste trend, variation, forecast sales vol, forecast sales/pur


    Cheers Jo

    Martin
  • MarkT
    MarkT Registered Posts: 302
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    Hi Martin,

    The first part is the trend of how the numbers change so you get the figure of 1080.

    The variation is worked as the Monthly sales minus the trend so 35640 - 41040 = -5400

    The question then states that the variation is on a 3 month cycle and so effectifevely month 1 is -5040, 2 is -10800 and 3 is 16200

    The answer for January is:

    :Forecast Trend 45,360 (43,200 +2x1080)

    :Variation -10,800 (December would have been -5400)

    :Forecast Sales Volume 34,560 (45,360 - 10,800)

    :Forecast Sales £172800 (45,360 x £5)

    :Forecast Purchases £103,680 (60% of £172,800)

    Hope this helps - We just went over this part of CMGT last night - so its pretty fresh in mind :)
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