Budgeting Practice Assessment (AQ2013)

Amyjay

Hi everyone!

I'm sitting my budgeting exam soon and have just tried Practice Assessment 2 on the AAT website. I keep getting stuck on question 1.4 with the index numbers. I can calculate the first 4 years but when it asks to forecast to year 5 I keep getting 14418 when the answer is 14891.

I assume when forecasting forward you take the revenue in year 1 of 12200 / 110 (index for year 1) x 130 (index in year 5) to give the forecasted revenue which gives the answer 14418.18.

I can't see what I'm doing wrong if anyone can help!

Thanks!
Amy

Amyjay

Note on previous post:

I hadn't noticed the pattern running along the bottom sales figures which increase by 100 each time. So the year 5 figure would be 12600 and then working backwards you get the 14891!

It's all good now last minute exam panic!