FINANCIAL MANAGEMENT

Financial Management Accounting and Forecasting

Unit 2 - Accounting and Forecasting

Year-To-Year Percentage Annual Growth In Total Net Sales

In order to calculate the annual growth in total sales, we use the formula:

Percentage change = current year-base year/ base year *100

Based on this formula, the annual growth in sales is given as:

Fiscal Years

2008

2007

2006

2005

2004

Net Sales

$8,334

$6,141

$9,181

$11,933

$11,062

Calculations

[(8334- 6141)/6141]*100

= (2193/6141)*100

= 35.71%

[(6141-9181)/9181]*100

= (-3040/9181)*100

= -33.11%

[(9181-11933)/ 11933]*100

= (-2752/11933)*100

= -23.06%

[(11933-11062)/ 11062]*100

= (871/11062)*100

= 7.87%

% Increase (decrease) in sales

35.71%

(-33.11)%

(-23.06)%

7.87%

 

Achieving Sales Goal

Based on the answer obtained in the previous question, we can come to a conclusion that the company can hit the sales goal ...