Forsure Fisheries (Pty) Ltd is struggling to forecast expected sales

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January 2nd, 2018

Forsure Fisheries (Pty) Ltd is struggling to forecast expected sales for their fisheries business because of uncertainty in demand for fish. Past records for the company shows that if they don’t keep stock of frozen fish in any particular year, sales hit P200, 000 a year but if they keep P200, 000 of frozen fish in inventory, sales become P150, 000 a year. At the end of 2014 when they closed for business, recorded sales for the year were P150, 000.A last year student intern for the company has compiled the following information which management has approved as reliable: Inventory forecast for 2015 will be P1, 000,000.00 and that it will increase by 5% for two years as a result of impending double dip recession and decrease by 20% in subsequent years due to rebound in the fisheries sector.You have been retained by Forsure to estimate the annual sales for 2019.

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