Show the sales forecasting, Financial Management

Assignment Help:

A niche market targets a well-defined and specific market segment. Firms that operate in niche markets will therefore cater for the precise and distinct needs of their customers. Distinctly mass markets, the client base for niche markets is relatively small. Yoshiko Travel Ltd. might be considered to operate in such a market because it tenders a specialised service to its rich Japanese clients who are fans of the English Premier League.
b) Sales (

000) Jan Feb Mar Apr May Jun
30 28 32 35 28 0
3-month moving averages 90 ÷ 3 = $30,000
95 ÷ 3 = $31,1667
95 ÷ 3 = $31,1667
63 ÷ 3 = $21,000

4 marks: Award 1 mark for every correctly worked out set of moving averages.
3 marks: If answers are correct but not expressed in

000 and/or there are minor omissions/errors.
1-2 marks: If there is no working work or / and two or more mistakes are made.
c) See graph

For maximum marks, the axes should be perfectly labelled. Deduct a mark for each error made.

1591_Show the sales forecasting.png

Note: The 3-month moving average could be intrigue as a time-series line.

d) Due to the large variations in sales (with a variance of $35,000 in April and zero sales in June), it is complicated to establish any underlying trend line by using the actual sales figures. The 3-month moving average does smooth out these variations to some extent, however.

During the football season, the range in sales is only $7,000 (from $28,000 to $35,000) and the firm is likely to be capable to manage this. Though, with no sales at the end of the football season Yoshiko Travel Ltd. will need to have plan in place to deal with a lack of cash inflow throughout such times, i.e. sales forecasting can help the firm to improve its monetary management. There are also probable to be some staffing issues during the off-peak football season.


Related Discussions:- Show the sales forecasting

Evolution of securitization, Securitization is a financial innovati...

Securitization is a financial innovation born out of the necessity the savings and loan associations of the United States of America face to save themselves from im

Establish budgets and allocate funds, 1. Allocate resources to different de...

1. Allocate resources to different departments by taking information from previous financial data. 2. What would be the estimated cost of new allotted resources to be included i

Explain foreign equity ownership restrictions, Explain foreign equity owner...

Explain foreign equity ownership restrictions. Why do you think countries entail these restrictions? Several countries restrict the maximum fractional ownership of local organiza

Major advantages of preparing a statement of cash flow, QUESTION 1 ...

QUESTION 1 Part A i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases ii) When accounting for fina

Theories of the term structure, There are two important term structur...

There are two important term structure theories related to the shapes of the yield curve. First is the Expectations Theory and the second is Market Segmentations

Stock price calculations, I need help working through this problem. What is...

I need help working through this problem. What is the stock price of Firm X when provided the following information? Beta – 1.42 MRP – 10% Rf – 3% G – 4% Dividend next period-

Long currency straddle, If the future spot rate of euro at option expiratio...

If the future spot rate of euro at option expiration is uncertain and takes a value within a range of $0.95 to $1.10, construct a contingency graph for a long currency straddle and

What circumstances would market to book value ratios, Under what circumstan...

Under what circumstances would market to book value ratios be misleading?  Explain. The Market to Book ratio is helpful, however it is only a irregular approximation of how li

Chi square distribution, Chi Square Distribution If the difference betw...

Chi Square Distribution If the difference between actual and the expected frequencies is zero, the sampling distribution of the chi square statistic c 2  will be identical to a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd