# Budgeting - Forecast sales using growth trend & seasonal variations

mrderek88
Feels At HomeElgin, ScotlandRegistered Posts:

**44**
Hi folks

Looking for some help here - its the only part of budgeting that Im not getting my head around.

The question is:

This year's sales are £2,500,000. Analysis of recent years shows:

* growth trend of 2.5% per annum

* seasonal variations from the trend of

Q1 -£40,000

Q2 +£20,000

Q3 +£55,000

Q4 -£35,000

Forecase the sale for each quarter of next year; Q's 1,2,3 & 4

As I said, I just can't get my head around how to do this? Any help would be great - exam next week!!!

Thanks

Derek

Looking for some help here - its the only part of budgeting that Im not getting my head around.

The question is:

This year's sales are £2,500,000. Analysis of recent years shows:

* growth trend of 2.5% per annum

* seasonal variations from the trend of

Q1 -£40,000

Q2 +£20,000

Q3 +£55,000

Q4 -£35,000

Forecase the sale for each quarter of next year; Q's 1,2,3 & 4

As I said, I just can't get my head around how to do this? Any help would be great - exam next week!!!

Thanks

Derek

## Comments

12can you check the answers first though..i sat mine 6 weeks ago so not 100% sure.

This year’s sales is £2,500,000

You have to apply the growth trend of 2.5% -> (£625000) -> sales forecast would therefore be £2500000+£625000= £3125000

As they require trend per quarter, you need to divide £3125000 by 4 = £781250 per quarter. Then you just apply the variations:

Q1 - £781250 – 40000 = £741250

Q2 - £781250 + 20000 = £801250

Q3 - £781250 + 55000 = £836250

Q4 - £781250 – 35000 = £746250

782After that though the above poster is correct. You divide this by 4 to get each quarters' figures and then add/subtract the variation.

You can then double check you haven't made any mistakes by adding all the monthly figures together to check you get back to the annual figure.

782600625

660625

695625

605625

44Should be ok now.... fingers crossed though!!

Also, the answer's from Nps are the correct ones!!

Derek

12But good luck to you Derek :-)