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

Characteristics of a stock exchange, Characteristics of a Stock Exchange ...

Characteristics of a Stock Exchange The requirements for a stock exchange to act as a platform for buying and selling securities is dependant upon the trading prerequisites. Som

Financial management and production department, The production department i...

The production department in any firm is concerned with provision of production facilities, production cycle, skilled and unskilled labor, storage of finished goods, capacity utili

Leverage, evaluate the importace of leverage in financial management of a s...

evaluate the importace of leverage in financial management of a small scale company

Cost of debt, Cost of Debt (k ) : This describes the rate of interest paya...

Cost of Debt (k ) : This describes the rate of interest payable on debt.  The cost of debt funds may be calculated when the debt is redeemable or irredeemable. therefore, when deb

Sale of common stock on the statement of cash flows, Accrued Payroll was $1...

Accrued Payroll was $10,000 and $15,000 at the beginning and end of 20X4, respectively. The payroll expense for 20X4 totaled $520,000. Cash outflow for payroll during 20X4 totaled:

Determine the preference shares - equity instruments, Determine the Prefere...

Determine the Preference Shares - Equity Instruments Sandwiched between equity share holders anddebt holders, preference share holders have promise of an assured dividend from

What do you mean by pension funds, What do you mean by pension funds? ...

What do you mean by pension funds? Pension funds: Pension funds give retirement income (as the form of annuities) to workers covered through a pension plan. They get cont

Advantages and disadvantages of pay back period, Advantages: It is ...

Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.

Show the accountable plan, Q. Show the Accountable Plan? Accountable P...

Q. Show the Accountable Plan? Accountable Plan - An accountable plan is any reimbursement or other expense allowancearrangement of an employer which meets all of the subseque

Factors considered in assigning a credit rating, Credit rating agenci...

Credit rating agencies carry out credit rating. Companies appoint these agencies to assign credit rating for their corporate issues. The rating agencies may condu

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