4. Financial Forecast & FeedbackAs the manager of A & R Entertainment, you are required to complete the cash flow forecast andprovide a feedback to the director. Your cash flow forecast will predict the bank balance at the end ofeach 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, willearn $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 monthsin 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 fourevents are staged. The event in March will earn $13,000.00 in merchandising income, and theother events in May, August, and October will earn $16,000.00, $18,000.00, and $13,000.00respectively.● Additional information:e.ExpenditureSalariesCasual WagesOffice and Administrative ExpensesTravel & TransportVenue Hire$1,200,000.00100,000.00360,000.00560,000.00240,000.00You 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 thecompany.

Cashflow forecast : Particluars Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash inflows…

Answered: Generate the cash flow forecast for…

Business

Accounting

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

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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.

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