Hi! With explanations and full solution please, I really want to learn this but I am having a hard time understanding. I'm sorry

Topic: Sales Forecasting

Instruction: Your good friend Jasmine hired you to help her make a Sales Forecast for her start up business. Complete the form and compute the yearly projected sales using the ff. information.

Jasmine loves to bake and make delicacies so she decided to start her own business called Jasmine's Sweet Desserts. She's projecting her sales to increase by 9% annually. Assume that the Sales return is 2% of her total gross sales each year, sales discount is 3% of the total gross sales each year.

Revenue is the company's income before any expenses are subtracted from the calculation. When preparing the income statement, revenue is placed at the top line number. In aocounting terms, Sales comprise once a component of the company's revenue referred to as Gross Sales Gross Sales are the proceeds a company generates from selling goods or services to its customers. Gross Sales is computed as follows: Gross Sales = Selling Price x No. of units of products sold Illustration Abdul Ciama sold 50 face masks with a selling price of F 30.00mask. To compute for the voss sales Gross Sales = P 35.00 x 60 pcs Gross Sales = P 1, 750.00 Not Sales is the result of subtracting any returned merchandise from gross sales. Retail companies tend to report net sales as well as revenue. o Sales Returns and Allowances A return on sales happens when a customer returns goods to the seller. Typically, a retum for sale occurs when the goods are defective or damaged. For example, when the customer buys a face mask and notices that the stitching is coming apart you should expect the mask to be retumed for a full refund. Assume return in sales is P 70. Microover, when the sever reduces the price of of the buyers goods, it is referred to as sales allowances. The reduction could be due to a problem with the goods sold, For example, the quality of the goods sold did not satisfy the buyer's requirement or need. If there is a mistake in the number of forms delivered, or an error in the sale price, the seller may post a sales allowance. Assume that sales allowances total / 100.00. Sales Discount is a reduction in the selling price in exchange for the buyer's early payment. In this setting, the seller would prefer early cash collection, even though the cash earned is less than the customer's amount. Sales discounts will boost the cash flow of the company. Assume that sales discounts total P 20.00 Net Sales = Gross Sales - (Sales Returns and Allowances + Sales Discounts) Illustration A J Abdul Clams sold 80 face masks with a selling price of P 30.00/ mask. The cost of producing a mask is I 18.00. Assume that the customer went back to his store and wants a refund for the thee damaged masks she bought. To compute for the Net Sales: Gross Sales (80 x P 30.00) P 1. 600.00 Sales Returns and Allowances ( 3 x P 30.00) 90.00 Not Sales P 1410.00 B.J Abdul Diama sold 80 pos face masks per week with a seiling price of P30 00/ mask. The cost of producing mask is P18.0D. Assume that the customer went back to his stove and wants a refund for the 3 damaged masks she bought On the next day, another customer bought 40 pes mask and paid in full amount. Considering the number of goods sold and the full payment, Abdul Olame granted her with 5%% sales discount Compute for the Net Sales for the week Gross Sales (180 x P 30.00) P 4 500.00 Sales Returns and Allowances ( 3 x P30 00) 90.00 Sales Discounts (40 x P 30 00) x 8%% 60.00 Not Sales PA. 350.00Actual Sales Year 2018 (Mango Float and Chocolate Cake) Total Total Annual Product Sizes Selling Price Quantity Monthly Gross Sales Gross Sales 1. Mango Small 20 tubs Float P 30.00/tubs Medium P 50.00/tubs 20 tubs Large P 100.00/tubs 20 tubs 2. Chocolate Small P 20 tubs Cake 30.00/tubs Medium P 50.00/tubs 20 tubs Large P 100.00/tubs 20 tubsBelow are examples of some taxpayers and their sources of income: NATURE OF BUSINESS INCOME SOURCES Parlor Service fee Fumfare maker Sales of fumiture Bakery Sales of breads and cakes Dentist Accountant, Lawyer Professional fees Apartment Rental Income Sar-san stone Sales of vanous grocery Hema In order to conduct an accurate forecast on sales, It is important for companies to make informed business decisions and predict short-len and long-term performance. Companies can base their forecasts on past sales data, industry-wide comparisons, and economic trends. An assumption can then be made using the gathered information thus making a forecast. One of the simplest and easiest methods for forecasting is the straight line method. A financial analyst makes use of historical figures and trends to predict future growth in revenues.We will look at how to compute sales growth rate using straight line method forecasting. A retail business assumes a constant sales growth rate of 8% for the next five years in the following example: For 2015, the growth rate was $.0% based on historical performance. Assuming the growth will remain constant into the future, we will use the same rate for 2016 - 2020.The first step in straight-line forecasting is to find out the sales growth rate that will be used to calculate future revenues. Particulars 2014 2016 2016 2017 2018 2019 2020 Your 1 2 4 ISTORICAL DATA FORECAST SALES P14 986 00 P15, 833.00 GROWTH RATE 5.0% We can use the formula: Estimated Growth Rate on Sales Asaant of Sales Previous Tear X 10O FIRKIN X 101 New, to forecast three revenues, fake the previous year's figure and muimply it by the growth rate. The formula used to calculate 2016 projected revenue: Wustration Projected Sales for the next year = Previous Sales + (Previous Sales x growth rate) = P15,833 00 + (P15, 833 00 x 5%) -P15 833 00 + P791.65 =P16 624 68 2014 2016 2016 2017 2018 2019 2020 Particulars Year 2 5 6 7 HISTORICAL DATA FORECAST DATA SALES 15 833 00 16,624.65 17,456.83 18,328.68 19 245 11 20,207.37 GROWTH RATE 5.095 5.0% As evident the importance of revenue forecasting is not just limited to budget allocation and planning for the next year. I highly impacts strategic planning and decision-making processes that lead to the company's future success and growth. But to recap all the benefits of revenue forecasting, the most. reliable of forecasting methods and tools should be used. Your numbers should be as accurate as possible, as well.Jasmine's Sweet Desserts Sales Forecast: Actual Projected 2018 2019 2020 2021 SALES Sales- Mango Float Sales- Chocolate Cake Gross Sales Sales Ret. & Allowances Sales Discounts Net Sales