Practice Assessment 2 on Budgeting - query about Task 4

JayneyJayney Just JoinedKentPosts: 21AAT Student, AATQB
Hi can someone show me how to work out sales revenue for year 5?

Sales Rev for yr 1 is 12,200, yr 2 12747, yr 3 13527, yr 4 14091 & year 5 ?
Sales price index for yr 1 110.0, yr 2 114,0, yr 3 120.0, yr 4 124.0 & yr 5 130.0
Sales revenue at yr 1 prices. yr 1 12200, yr 2 12300, yr 3 12400 & yr 4 12500

Thank you in advance

Comments

  • SandyHoodSandyHood Font Of All Knowledge Posts: 2,034Registered, Moderator
    Janey
    I copied out your numbers and spotted a trend on the third row.
    You may have seen it too. At yr1 prices the sales revenue is rising by 100 per year.
    On that basis, I would predict that the year 5 sales revenue at yr 1 prices will be £12,600.
    I can also see that any sales revenue at yr 1 prices value divided by the yr1 sales price index and x the sales price index for that year = the sales revenue for that year.
    For example year 3: £12,400/110 x 120 = £13,527
    So applying the same approach to year 5
    £12,600/110 x 130 = £14,891



    Year
    Year 1
    Year 2
    Year 3
    Year 4
    Year 5
    Sales Revenue 12,200 12,747 13,527 14,091 to find
    Sales Price Index 110.0 114.0 120.0 124.0 130.0
    Sales Revenue at yr 1 prices 12,200 12,300 12,400 12500 not given

    Sandy
    [email protected]
    www.sandyhood.com
  • hanifnoorhanifnoor Posts: 1Registered
    I would predict that the year 5 sales revenue at yr 1 prices will be £12,600.
    I can also see that any sales revenue at yr 1 prices value divided by the yr1 sales price index and x the sales price index for that year = the sales revenue for that year.
    hanifnoor
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