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Generate the cash flow forecast for January to December 2017.

Generate the cash flow forecast for January to December 2017.

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

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