Fun Park Surea It’s not going very well, too little quests!

It’s not going very well, do something! Next period Profit and enough cash! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000

You are the manager of Fun Park Surae. The Balance sheet and Profit & Loss Account at the start are given. What happened: You lend money (round 1) You invest (round 2) Extra costs (and revenue) for a promotions (round 3) Extra or less staff (round 4) Beware of enough cash (round 5)

Round 1 Balance Sheet (150 points) Decision Loan €100,000 / €200,000 / €300,000 / €400,000 Decision: long-term loan or short-term loan Calculate the new Balance Sheet Balance Sheet 2/1/2016 Fixed assets Cash ? Equity Long-term liabilities Short-term liabilities Total

Long-term liabilities Balance Sheet 1/1/2016 Fixed assets Current assets Cash 900,000 100,000 Equity Long-term liabilities Short-term liabilities 500,000 400,000 Total 1,000,000 +200,000 +200.000 +200.000 +200,000 +200,000

Round 2 Balance Sheet (150 points) Decision Investment: €100,000/€200,000/€300,000/€400,000 Investment in: Indoor playground or outdoor playground Cash minimal €100,000 Cash minus the short-term loan must be positive Calculate the new Balance Sheet Balance Sheet 2/1/2016 Fixed assets Cash ? Equity Long-term liabilities Short-term liabilities Total

Long-term liabilities Balance Sheet 1/1/2016 Fixed assets Current assets Cash 900,000 300,000 Equity Long-term liabilities Short-term liabilities 500,000 600,000 100,000 Total 1,200,000 +200,000 -200,000

Round 3 Profit and Loss Account (200 points) Depending on your decision in round 2 Is it good or bad weather? Investment €100.000 €200.000 €300.000 €400.000 Revenue tickets Indoor playground Good weather Bad weather Outdoor playground +5% +10% +20% +15% +30% +40%

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 Investment round 2: Revenue ticket: +10% = €90,000 €900,000 +€90,000 = €990,000

Round 3 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 Decision: yes or no promotion: Costs: €50,000 of €0 ; Revenue tickets increase: + €100,000 of €0 but attention: Costs this period and the receipts period after the game! Calculate: Revenue tickets, depreciation, interest, profit

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 Revenue: + €100.000 €990.000 +€100.000 = €1.090.000

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 10% of fixed assets = 0,1 * (€900.000 + €200.000) = €110.000

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 5% of long-term loan 10% of short-term loan €30.000 + €10.000 = €40.000

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 €1,090,000 €200,000 €1,290,000 €100,000 €625,000 €425,000 €110,000 €40,000 €1,150,000 €10,000 Fixed costs: €575,000 + €50,000 = €625,000

Round 4 Profit and Loss Account (250 points) Decision: Investment in staff? + €20.000 of + €40.000 of - €10.000 Calculate: Revenue Food & Beverage, Costs of sales Food & Beverage, Profit, Equity Staff costs Revenue Food & Beverage Costs of sales + €20.000 +20% +5% + €40.000 +40% +10% - €10.000 0%

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 Revenue F & B: + €40,000 Costs F & B: + €5,000 Costs staff: + €20,000 €1,090,000 €200,000 €1,290,000 €100,000 €625,000 €425,000 €110,000 €40,000 €1,150,000 - €10,000

Look at the slides on paper! Profit & Loss Account Look at the slides on paper! Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 €1,090,000 €200,000 €1,290,000 €100,000 €625,000 €425,000 €110,000 €40,000 €1,150,000 - €10,000 €1,090,000 €240,000 €1,330,000 €105,000 €625,000 €445,000 €110,000 €40,000 €1,170,000 + €5,000 New Equity: Old Equity + profit €500,000 + €5,000 = €505,000

Round 5 The Cash Budget (250 points) Review the Profit & Loss Account Cost of sales F&B, fixed costs, staff costs, interest must be paid in the same period and are also expenses. But what about the depreciation and repayments of the loan? 50% of the trade payables must be paid in this period. Attention for the ticket receipts!

Round 5 The Cash Budget The cash balance at the end of the period must be positive Decision: Extra loan of the bank? Commission €10,000 ; interest costs next period Penalty points if profit or cash are negative Calculate: Receipts of revenue, depreciation, repayments of the loan, cash balance at the end of the period

Repayments: 20% of long-term liabilities: 20% of €600,000 = €120,000 Round 5 The Cash Budget Revenue Revenues tickets Revenues Food & Beverage Total €900,000 €200,000 €1,100,000 Costs: Cost of sales Operational costs Staff Depreciation Interest Total costs €100,000 €575,000 €425,000 €90,000 €30,000 €1,220,000 Loss -€120,000 €1,090,000 €240,000 €1,330,000 €105,000 €625,000 €445,000 €110,000 €40,000 €1,170,000 + €5,000 €100,000 €105,000€625,000 €445,000 €40,000 + 10,000 €66,000 Receipts tickets: €1,090,000 - €100,000 = €990,000 Receipts F & B: €240,000 Total: €1,230,000 €1,000 Repayments: 20% of long-term liabilities: 20% of €600,000 = €120,000 Trade payables: 50% of €100,000 = €50,000