Question
8. The Zebulon Machine Tool Company is creating a financial plan for the year 2016. The company uses a Weighted Moving Average approach to financial
8. The Zebulon Machine Tool Company is creating a financial plan for the year 2016. The company uses a Weighted Moving Average approach to financial planning. The most recent year for which actual costs have been formalized is 2014 (n-1). The company budgets R&D at 8.5% of forecasted revenue. The company uses the following formula to calculate WMA.
Fn = 40%(An-1) + 30%(An-2) + 20%(An-3) + 10%(An-4) - F= Forecast, A = Actual Revenue
a. Calculate the forecasted revenue for 2015.
b. Calculate the budget for R&D for 2015
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Sales Revenue | $ 225.00 | $ 228.00 | $ 231.00 | $ 242.00 | $ 251.00 |
| Weighted 4-Year Moving Average | $ 134.00 | $ 173.00 | $ 201.00 | $ 220.00 | |
| R&D Expenditures (8.5% of Weigthed 4 Year Moving Average) | $ 11.40 | $ 14.70 | $ 17.10 | $ 18.70 |
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Supply Chain Risk Management Applying Secure Acquisition Principles To Ensure A Trusted Technology Product Internal Audit And IT Audit
Authors: Ken Sigler, Dan Shoemaker, Anne Kohnke
1st Edition
1138197335, 978-1138197336
