how do I prepare a forecast for the next year based on my current information and how would I prepare a budget.. I've attached it in the attachment. thank you .
this is the forecast from the previous assignment, but I need to forecast for the "next" year.
Budget Items Quarter 6 Quarter 7 Quarter 8 Revenues Budget Actual Variance Budget Forecast Variance Budget Forecast Variance 1. Brief Paragraph Explaining Quantitative Forcast Technique. Sales $85, 169,513 $57,365,000 $ 27,804,513 $110,720,366 $70,380,834 $ 40,339,532 $143,936,475 $77,668,065 $ 66,268,410 We used a linear trendline to for our business forecast. At Glacial Cool we have increased our operations consistently throughout the first six quarters. Our forecast works on the assumption that we will continue at the same rate for the next two quarters and we are confident that this Expenses 10,511,517 $31,844,011 $ 19,499,879 will be true. Cost of Goods Sold $30,381,000 $23,930,000 $ 6,451,000 $39,495,300 $28,983,783 $ $51,343,890 2. Does your forcast reflect you are on target? General & Administrative $860,000 $860,000 $ $860,000 $860,000 $860,000 $860,000 $ Our forecast has a large variance in many categories. Overall our total expenses are forecasted Human Resources $11,300,000 $10,810,000 $ 490,000 $11,600,000 $12,664,290 (1,064,290) $11,800,000 $14,129,904 $ (2,329,904) to be lower than what we have budgeted for. We must be careful that our budgeted sales are Inventory Carrying Cost $110,000 $164, 160 $ (54,160) $120,000 $168,948 $ (48,948) $130,000 $197, 105 $ (67,105) not overambitious in relation to our forecast. This could cause serious financial problems if the Sales and Marketing $600,000 $525,000 75,000 $675,000 $638,267 36,733 $750,000 $737,754 12,246 forecast was more accurate. Research and Development $280,000 $280,000 $ $280,000 $280,000 $ $280,000 $280,000 $ 3. If not on target, what is your plan? Are you going to adjust short-term decisions to align with budget/company. Or are you going to adjust your company plan (and budget) to reflect Total Expenses $43,531,000 $36,569, 160 $ 6,961,840 $53,030,300 $43,595,288 $ 9,435,012 $65, 163,890 $48,048,774 $ (17,115,116) the direction that your forcast indicates? Net Profit $41,638,513 $20,795,840 20,842,673 $57,690,066 $26,785,546 $ 30,904,520 $78,772,585 $29,619,291 $ 49,153,294 The biggest variance in our forecast is sales. To fix this, we must adjust our budgeted sales to give us a more accurate picture of how we should allocate the remainder of our budget
