Microsoft Office Tutorials and References
In Depth Information
The FcstSales.xls Workbook
There’s no need to show an example of the FcstSales.xls
workbook, because it has the same general structure as shown in
Figures 7-2 through 7-4.
This workbook would contain its own range of time periods. The
workbook with sales forecasts typically contains forecasted sales
for each month in the coming year, the current year, and, perhaps,
the prior year.
The Rolling-12 Worksheets
All four workbooks include an R12 worksheet. Each column of data
in these worksheets contains the 12 most-recent months of activity
for every product or account. That is, each column in the R12
worksheets contains the sum of the current month and the eleven
prior months. By doing so, these worksheets treat each month as
the end of a fiscal year.
This information is very useful, for at least two reasons. First, it
provides the P&L totals that allow you to calculate financial ratios
like Return On Equity or Assets Turnover for any month in a fiscal
year.
Second, because trends in these Rolling 12-month totals aren’t
affected by seasonal variations, they provide a clearer view about
the direction of your business.
When you calculate rolling 12-month totals, you lose 11 degrees of
freedom. To illustrate, if your data begins in January, 2002, the first
total you can calculate will be for December, 2002.
So what should you do about those first 11 columns of missing
data?
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