Budget — OpenTuition Forums

IIzabel6y ago

Hi john, I’m quite confused with this Sales budget of a company on Jan 2014 is 20000 and it is expected to grow at 1000 per month and the 12 month budget for year end Dec 2014 correctly shows 306000. What would be revenue under rolling budget for Jan 2013 Answer says 318000 Rolling means adding on. So shouldn’t it 307000

IIzabel6y ago#1

I meant what would be rolling budget for Jan 2015

John MoffatTutor6y ago#2

If the budget for Jan 14 is 20,000, then the budget for Jan 2015 will be 20,000 + (12 x 1000) = 32,000. Therefore the rolling budget for the year to the end of January 2015 will be 306,000 - 20,000 + 32,000 = 318,000.

IIzabel6y ago#3

I understand why you added 32000 but why deduct a 20 ? Is it last January 20000

John MoffatTutor6y ago#4

Because the rolling budget is for the 12 months from February 2014 to the end of January 2015. The budget for the 12 months to December 2014 included January 2014.

IIzabel6y ago#5

Hi John I'm again confused and back at it. If they say the budget of dec is 306000 that means they have accounted for expected 1000 increase every month from Jan untill Dec correct. Why would we add it again 12*1000

John MoffatTutor6y ago#6

The following budget is for Feb until Jan So we subtract what was previously included for Jan 14 (20,000) and add the budget for Jan 15 (32,000)