Generate the cash flow forecast for January to December 2017.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
4. Financial Forecast & Feedback
As the manager of A & R Entertainment, you are required to complete the cash flow forecast and
provide a feedback to the director. Your cash flow forecast will predict the bank balance at the end of
each month for every month of the year. Use the information below to complete this task.
a. A & R Entertainment has on its books four (4) major events to run, which will take place in March,
May, August, and October.
b. The total of $2,850,000.00 in ticket sales will be earned in the months that the events are held.
The March event will earn $650,000.00, and the other events in May, August, and October, will
earn $700,000, $850,000, and $650,000.00 respectively.
c. Expenditure on casual salaries, travel and transport, and venue hire, will occur only in the months
in which the four events take place. These expenditures will be the same for each event.
d. Salaries and office and administration expenses will occur evenly every month.
The company's opening bank balance on 1st January is $50,000.00.
f. The company will receive a grant of $500,000.00 in July.
g. The company will make a small income from merchandising during the months in which the four
events are staged. The event in March will earn $13,000.00 in merchandising income, and the
other events in May, August, and October will earn $16,000.00, $18,000.00, and $13,000.00
respectively.
● Additional information:
e.
Expenditure
Salaries
Casual Wages
Office and Administrative Expenses
Travel & Transport
Venue Hire
$
1,200,000.00
100,000.00
360,000.00
560,000.00
240,000.00
You are required to:
a. Generate the cash flow forecast for January to December 2017.
b. Prepare a summarised report of the forecast for the year with a cover letter to the director of the
company.
Transcribed Image Text:4. Financial Forecast & Feedback As the manager of A & R Entertainment, you are required to complete the cash flow forecast and provide a feedback to the director. Your cash flow forecast will predict the bank balance at the end of each month for every month of the year. Use the information below to complete this task. a. A & R Entertainment has on its books four (4) major events to run, which will take place in March, May, August, and October. b. The total of $2,850,000.00 in ticket sales will be earned in the months that the events are held. The March event will earn $650,000.00, and the other events in May, August, and October, will earn $700,000, $850,000, and $650,000.00 respectively. c. Expenditure on casual salaries, travel and transport, and venue hire, will occur only in the months in which the four events take place. These expenditures will be the same for each event. d. Salaries and office and administration expenses will occur evenly every month. The company's opening bank balance on 1st January is $50,000.00. f. The company will receive a grant of $500,000.00 in July. g. The company will make a small income from merchandising during the months in which the four events are staged. The event in March will earn $13,000.00 in merchandising income, and the other events in May, August, and October will earn $16,000.00, $18,000.00, and $13,000.00 respectively. ● Additional information: e. Expenditure Salaries Casual Wages Office and Administrative Expenses Travel & Transport Venue Hire $ 1,200,000.00 100,000.00 360,000.00 560,000.00 240,000.00 You are required to: a. Generate the cash flow forecast for January to December 2017. b. Prepare a summarised report of the forecast for the year with a cover letter to the director of the company.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

How do I prepare a summarised report fo the forecast for the year with a coverletter to the director of the company?

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education