Abz2 Posts: 1, Reputation: 1 New Member #1 Nov 16, 2008, 12:52 AM
Rate of sales growth
Hi there, this is my question

Chem-Med net sales are as follows
1996 - \$777,000.00
1997 - \$3,051,000.00
1998 - \$3,814,000.00
And on the Pro Forma Income Statement the net sales are
1999 - \$5,340,000.00
2000 - \$7,475,000.00
2001 - \$10,466,000.00

The growth rate sales in 1998 I found to be 25% ((\$3,814,000.00 - \$3,051,000.00) ÷ \$3,051,000.00 * 100)

The question then asked what is it forcasted to be in 1999, 2000, and 2001.
Am at a lost, what are they asking about? Is it the forcasted rate of growth for those year?
How do I proceed in answering the question? What other figures should I be looking at?
 ms180sx Posts: 64, Reputation: 6 Junior Member #2 Nov 16, 2008, 04:08 AM

are they saying to find the overall growth increase percentage, and that calculate that number as a new number using the 1998 net sales?
Say increase total is 25%. Company's budget was 20%. Did the company do X% growth every year?
to find out calcuate what 125% of 1998 was, to find out projected for 1999

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