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Please check if my answer is correct, as I am not sure…
A company uses time series analysis and the additive model when preparing its cash budget.
1) The latest trend figure for sales calculated for January 20×1 was $2,135,000
2) On the average the trend is increasing by $17,000 each month
3) Season variations are estimated to be:
Feb – 162,000; March + 135,000; April +181,000What should the company’s budgeted sales figure be for April?
$2,135,000 + 181,000 + (17,000*3 months: Feb, March,April) = $2,367,000
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