FP, urgent advice required-exam tomorrow
inga
Registered Posts: 3 New contributor 🐸
Can someone please help me to deal with this task from FP mock exam. My actual exam is tomorrow
Sales are given for the years:
2006 £175000
2007 £193025
2008 £211225
2009 £229250
2010 £247100
An index of price level movements is as follows:
Year Price level index
2006 100
2007 103
2008 107
2009 110
2010 112
2011 (forecast) 113
Assume that now is the end of 2010
Required: Restate the industry sales figures for each of the above five years (2006-2010) to 2011 forecast price levels using the appropriate price level index.
Year Sales Factor £
2006
2007
2008
2009
2010
Sales are given for the years:
2006 £175000
2007 £193025
2008 £211225
2009 £229250
2010 £247100
An index of price level movements is as follows:
Year Price level index
2006 100
2007 103
2008 107
2009 110
2010 112
2011 (forecast) 113
Assume that now is the end of 2010
Required: Restate the industry sales figures for each of the above five years (2006-2010) to 2011 forecast price levels using the appropriate price level index.
Year Sales Factor £
2006
2007
2008
2009
2010
0
Comments
-
I haven't studied the unit yet so this is just an educated guess, but it looks like the normal use of indices; so to project for 2011 it would be original figure / original index x 2011 index.
eg. 2007:
193,025 / 103 x 113 = 211,765.28
Is that the right answer?0
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