Monday 4 April 2011

10d The BIG Question

Read the 'Panto' case study on page 116 of the Black business books. Summarise briefly why the Panto sometimes has negative cashflow (more money going out than coming in). Should the panto be concerned by these periods of negative cash flow?

23 comments:

  1. Panto sometimes has negative cashlow as they have rubbish shows on which cost to run and greater then the amount of tickets people going buy however the panto panto should not worry they shouldnt as they will just need to get better shows and promote them better

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  2. because they do not have a perforence all year, they do not make any money, but still have to pay out, for example to clenaers, heating and gas. theese costs outweigh the money comming in so its a negitive cash flow. they rely on the biggest seller (christmmas panto) to pay for most of the year.
    mike sanders.

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  3. The panto sometimes has negative cash flow because they have to pay full time staff and all the bills even when there are no plays going on. They should be concered by this because they are probably not making much money atall.Grace

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  4. The panto sometimes get negative cashflow because they do not perform all year round. meaning that they are not getting any income. however they still have to pay their bills all year round, meaning not much money is coming in. Their fixed rates are still having to be paid and other bills on top of that. finally they should not be concerned because it is like any oher small business and further on in the year they will have enough money to pay all their debts and bills then possibly even have some profit aswell.

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  5. the reason why the panto might have a negative cashflow if because they are only showing their performances around christmas, this meant that for the rest of the calender year, they arent producing a thing. this would then give them a negative cashflow because they still have to pay all of their fixed costs.
    i think that they have every reason to be worried as they are usually only producing a service over the christmas period. this isnt a good thing.

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  6. The panto has sometimes got negative cashflow because they do not always get money all year, but they still have to pay the fixed rates even when there not working or planning a show.

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  7. Panto sometmes has negative cashflow because during some months there is not a performance showing but they still have to pay costs like gas and electricity bills. If the panto makes enough money during the busy months like christmas to keep them going throguh the year i dont think they need to be concerned.

    Hannah Cole

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  8. The panto company are struggling because they have to pay taxes and bills, paying staff and because they are a small business and not many people will maybe know about them. also they will have to pay money for buildings and bills even when not performing to keep them. The only really make their money in the christmas period.

    j man

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  9. because they do not have a perforence all year, they do not make any money, but still have to pay out, for example to clenaers, heating and gas. theese costs outweigh the money comming in so its a negitive cash flow. they rely on the biggest seller (christmmas panto) to pay for most of the year.
    mike sanders.

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  10. A pantomime can occaisonally have negative cashflow because their outflows are exceeding their inflows. As well as the fixed rates that they pay (rent, wages), their bills for electricity and heating bills can alter as they use the theatre for rehearsals. The patno should not always be concerned by the negative cashflow because they could have a fast positive cashflow during its four busiest weeks at Christmas.

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  11. The Panto sometimes has a negative cashflow, because of all the costs to run it, also they do not run for the whole year and do not always get a full house. The Panto shouldnt be concerned by this because they make up for it when they have positive cashflow

    Chloe Orange

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  12. The Panto doesn't put shows on all year round, yet it still has fixed rates, such as cleaners, lighting and electricity. Also, there's a lot of money going out of the business before any revenue can be made, such as buying or creating costumes. this results in 'negative cashflow' as they are paying out more money then they are bringing in. However around Christmas time when they have their mane show, their inflow increases dramatically, through this they hope to fund the business for the rest of the year.

    Dayna Potter :)

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  13. because they do not have a perforence all year, they do not make any money, but still have to pay out, for example to clenaers, heating and gas. theese costs outweigh the money comming in so its a negitive cash flow. they rely on the biggest seller (christmmas panto) to pay for most of the year.
    mike sanders.

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  14. Because sometimes they dont even have anyone to perform to becuase no one has paid to see the play. if they dont peroform anything then they will not have the money to pay council tax, business rates and to pay employees and this is negative cash flow becuase they are having to pay out money and didnt make money in the first place. I think the panto should be concerned becuase they are losing money everytime they dont perform, but if they make up for all the money they have lost through the christmas time then they should be ok.

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  15. the Panto has a negitive cash flow because their sales revenue comes in on a irregular basis. the Panto should not be concerned by these periods of negative cash flow as overall they still make a profit and the negative cashflow is just because the revenue is higher in some months.

    Ian Burden

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  16. The panto has negative cashflow because they dont use the theater all year round mostly only at christmas , but they still have to pay rent , electricitie ect . They shouldnt be concered because they make alot of money through christmas which should help them through not busy year . Savannah :) !!!

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  17. because they do not have a perforence all year, they do not make any money, but still have to pay out, for example to clenaers, heating and gas. theese costs outweigh the money comming in so its a negitive cash flow. they rely on the biggest seller (christmmas panto) to pay for most of the year.
    mike sanders.

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  18. panto can sometimes have a negative cashflow because it is having to pay for fixed cost all year round even if the business isnt making any money for example a skiing shop will not be busy in the summer but for the winter it will be a busy time and the business will try make all their money in that period of time to kee[ the business running.some businesses will have to be concerned by the panto but it depends on the amount of money they make in and spend in the periods of time.

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  19. The Panto' sometimes has negative cashflow this meas that their is more money going out of the business than coming in,this is very bad for the business. The panto needs to keep the money from the busy times so they can survive the year. The panto should be concered about the negatvie cash flow becasue it can casue long term damage to the business.
    Charlie Nasri

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  20. The panto has negative cashflow because they don't always have shows or stuff showing, so they can't make money, but still have to pay for stuff. And they shouldn't be concerned they should just leave it as it is, because it works. Brad Woolford

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  21. the panto sometimes looses money because they moght not have shows that month so they will loose money because they are not making any profit so there is barely any mony coming in than there is going out so there is a bigger out cashflow than ther is going in. This is because they have to keep paying taxes and bills and paying there employees money still. i think that the company should be concerned because if they do not make enough money they will have too much money going out so they will go bankrupt becasue they are not making enough money.
    Craig Hudson

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  22. panto can sometimes have a negative cashflow because it is having to pay for fixed cost all year round even if the business isnt making any money for example a skiing shop will not be busy in the summer but for the winter it will be a busy time and the business will try make all their money in that period of time to kee[ the business running.some businesses will have to be concerned by the panto but it depends on the amount of money they make in and spend in the periods of time.
    i forgot to put my name hehe!
    Alfie iron-man borszcz

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  23. the panto has negative cash flow beacause they spend a lot of there money rehearsing and buying props, lighting, heating, making tickets, paying the actors and actresses and the amount of people that go on see the panto are not enough to pay back the costs of making it thus making them have negative cash flow.
    Mitchell.

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