1. Touroperator SunShine
11 Januari2017
It’s not going very well, too little quests!

2. It’s not going very well, do something!
Next period Profit and enough cash!
Profit & Loss Account
Look at the slides on paper!
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

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

4. Play the quiz on your cellphone Go to: www.Kahoot.it
Students in class
Play the quiz on your cellphone
Go to:
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

5. 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!.

6. 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); VAT
Who’s the best?

7. 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

8. 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 fixed assets, trade receivables, cash, equity, long-term liabilities, short-term liabilities

9. €100,000 costs next period ; Current assets
Balance Sheet
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
+100,000
-100,000
+100,000
€100,000 costs next period ; Current assets
350,000
600,000
300,000
50,000
100,000
100,000

10. Round 2 Profit and Loss Account
(200 points)
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
Choice: Yes/No Action Discount:
Costs €10,000 ; additional revenue €500,000
(margin 10%)
Costs €20,000 ; additional revenue €700,000
Calculate:
Revenue, depreciation, interest, profit

11. 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
6,700,000
Additional Revenue: €1,400,000
Additional Costs of sale: €1,120,000 (80% of revenue)
Choice: Yes Action Discount: Costs €10,000 ;
additional revenue €500,000 ; margin 10%
Additional Revenue: €500,000
Additional Costs of sale: €450,000 (90% of revenu)
Additional Fixed costs: €10,000

12. 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
Depreciation: 10% of €600,000 = €60,000
Interest: 5% of €300, % of €100,000 = €25,000
Repayments of loan: 20% of €300,000 = €60,000
Only in Cash Budget not in Profit and Loss Account!
6,700,000
60,000
25,000
Operational costs: €575,000 + €100,000 (round 1) + €10,000 (round 2) = €685,000
Staff costs don’t change

13. 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
€6,700,000
€5,410,000
€1,290,000
€685,000
€375,000
€60,000
€25,000
+ €145,000
6,700,000
60,000
25,000
145,000

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

15. After round 2
Revenue
€5,000,000
Costs of sales
Gross margin
Operational costs
Staff
Depreciation
Interest
€4,000,000
€1,000,000
€575,000
€475,000
€20,000
€1,120,000
Profit
-€90,000
€6,700,000
€5,410,000
€1,290,000
€685,000
€375,000
€60,000
€25,000
+ €145,000
Additional Revenue: €600,000
Additional Costs of sale: €540,000
Additional operating costs: €50,000

16. After round 3
Revenue
€5,000,000
Costs of sales
Gross margin
Operational costs
Staff
Depreciation
Interest
€4,000,000
€1,000,000
€575,000
€475,000
€20,000
€1,120,000
Profit
-€90,000
€7,300,000
€5,950,000
€1,350,000
€735,000
€375,000
€60,000
€25,000
+ €155,000
7,300,000
60,000 (same)
25,000 (same)
155,000
Additional Revenue: €600,000
Additional Costs of sale: €540,000
Additional operating costs: €50,000 ; additional profit €10,000

17. Round 4 The Cash Budget (200 points)
Review the Profit & Loss Account
All mentioned costs are also cash expenditure.
But please note the actions of round 2 and round 3!
50% of the Trade Payables must be paid in this period.
80% 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?
(only in amounts of €10,000)
(interest 15% must be paid in round 6 after the game, costs in Profit & Loss Account this round)
Additional repayments of the loan?
(saving 10% interest immediately in Profit & Loss Account this round)
Calculate:
Cash balance (at the end of the period) and the profit

18. 100,000
6,700,000
80% of 50,000 = 40,000
360,000 ? ?
5,950,000
735,000
375,000
60,000 + ?
5,000
25,000
50,000
101,000
- 355,000
5,000
Profit after round 3 – interest additional loan (or) + interest additional repayments
155,000 – 54, = 101,000

19. 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 15% must be paid in 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

20. There is a positive reveive of VAT in de Cash Budget (€10,000)
The Cash Balance must be positive
So, additional loan if needed!
The additional Trade Payables only if there is a lot of cash!

21. round 5 15,000 101,000 5,000 0 (enough cash) 0 (not enough cash)
0 (not enough cash)
10,000
15,000
101,000
15,000
101,000
101,000