Please complete the remaining questions using the revised historical data. Predict the 2020 sales using exponential smoothing. Predict the 2020 using a trend line technique using (GROWTH function in Excel). Predict the sales
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The Simpson Corporation has gathered information regarding past sales of custom t-shirts.
| Year | Sales |
|---|---|
| 2013 | $225,000 |
| 2014 | $193,000 |
| 2015 | $248,000 |
| 2016 | $360,000 |
| 2017 | $340,000 |
| 2018 | $295,000 |
| 2019 | $310,000 |
You noticed a sudden jump in sales for 2016. After inquiring about this jump, you were notified by your manager about a one-time special order sale for $60,000 in that year that is not likely to be repeated. revise your historical sales to be used to project 2020 sales
Please complete the remaining questions using the revised historical data.
- Predict the 2020 sales using exponential smoothing.
- Predict the 2020 using a trend line technique using (GROWTH function in Excel).
- Predict the sales for 2020 using a graphing technique.
- It has been suggested that sales for the company may be connected to disposable income. Using the information below regarding historical disposable income, predict the sales for 2020 using regression analysis if a reliable prediction for disposable income for 2020 is $21,200.
Year Disposable Income 2013 $18,000 2014 $18,618 2015 $19,099 2016 $24,453 2017 $24,906 2018 $20,388 2019 $21,425 - Which method do you think provides the most realistic sales projections for 2020? Why?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
