Touroperator SunShine 17 November 2016 It’s not going very well, too little quest!

It’s not going very well, do something! Next period Profit and enough cash! Revenue €4,800,000 Costs of sales Gross margin Operational costs Staff Depreciation Interest €3,840,000 €960,000 €575,000 €375,000 €60,000 €20,000 Loss -€70,000 Costs of sales: 80% of revenue

We start with a quiz questions about the Balance Sheet questions about the Profit & Loss Account questions about the Cash Budget You only get points with a good answer, but more points with a quick answer.

Play the quiz on your cellphone Go to: www.Kahoot.it Students in class Play the quiz on your cellphone Go to: www.Kahoot.it Fill in the pincode and a nickname And wait for the questions Voor docent Ga naar create.kahoot.it click in het menu op public kahoots zoek: game SunShine Dan: Play - Launch - Start en speel op de telefoon

Game Goal: Calculate the changes in the Financial Statements Second goal: Profit and enough cash for Touroperator SunShine Your decisions don’t effect other teams. As a consequence of the decicions for each team the reality is different. Communicate with teammembers about your decisions!.

You are the manager of Touroperator SunShine. The Balance sheet and Profit & Loss Account at the start are given. What happened: A loan and investment (round 1) ‘Discount’ Promotion (round 2) ‘Pay later’ promotion (round 3) Additional loan or repayments (round 4) Discount for paying the Trade payables (round 5) Who’s the best?

Balance Sheet 1/1/2016 Fixed assets Trade Receivables Cash balance 600,000 50,000 100,000 Equity Long-term Liabilities Short-term Liabilities Trade Payables 350,000 200,000 Total 750,000

Forms and results on website: http://jooplengkeek.nl/Sunshine/index.html

Round 1 Balance Sheet (200 punten) Choice: Loan: ? ; Short-term or Long-term Investment: (to pay immediately) a) An App: €50,000 or €75,000 50% fixed assets ; 50% current assets (costs charged to operational costs in round 2) Or b) An Event €100,000 or €125,000 ; 100% current assets Or c) Accommodation: €400,000 or €500,000 ; 100% fixed assets Calculate the new Balance Sheet

Round 2 Profit and Loss Account (200 points) Depending on your decision in round 1 The revenue will be received immediately. The supplier must be paid immediately. Investment (*€1.000) Additional revenue 50 75 100 125 400 500 700 1,100 1,400 1,500 1,000 1,200

Round 2 Profit and Loss Account Depreciation 10% of fixed assets Interest 5% of long-term loan Interest 10% of short-term loan Repayments of loan: 20% of long-term loan (based on the new Balance sheet) Choice: Yes/No “Discount” Promotion: Costs €10,000 ; additional revenue €500,000 (commission 10%) Costs €20,000 ; additional revenue €700,000 (Commission 10%) Calculate : Revenue, depreciation, interest, profit

Round 3 Profit and Loss Account (200 points) Choice: “Pay later” Promotion: the customers may pay later (in the period after the game) Costs €50,000 ; revenue €600,000 (commission 20%) Costs €100,000 ; revenue €900,000 (commission 20%) But if You have chosen for the discount promotion in round 2, the margin is 10%. The customer pays later, the supplier must be paid immediately. Calculate: Revenue, depreciation, interest and profit

Round 4 The Cash Budget (200 points) Review the Profit & Loss Account All mentioned costs are also expenditure. But please note the actions of round 2 and round 3! 50% of the short-time Liabilities must be paid in this period. 75% of the trade receivables will be paid. The cash balance at the end of the period must be positive. Decision: Additional loan of the bank? (interest 10% must be paid immediately) Additional repayments of the loan? (saving 10% interest immediately) Calculate: Cash balance (at the end of the period) and the profit

Round 5 The Cash Budget (200 points) Received VAT from customers: €50,000 Paid VAT to supplier: €40,000 Choice: If You pay the remaining Trade Payables You get a discount of 10% Decision: Additional loan of the bank? (only in amounts of €10,000) (interest 10% must be paid round 6 after the game, costs in Profit & Loss Account this round) Additional repayments of the loan are not permitted in round 5 Calculate: Cash balance (at the end of the period) and the profit Penalty points if profit or cash are negative