This blog is used to set lesson engagement activities (bell work) for Mr Clarke's business studies students.
Thursday, 9 February 2012
big q
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?
The Panto should not be concerned by the negative cash flow because Pantomimes are inly on normally around christmas time and they will make most of their money from the tickets actually at the event, they cannot make money if there is no Panto in the first place. To make sure they do not have a higher expenditure than revenue they could host them more often, outside panto season as well as inside panto season. Andrew Lee:)
the panto shouldnt be concerned about the periods of negavtice cashflow as long as they can make enough money, in the popular pirods, to support them throughout the year. however they should be concerned if within the popular periods they dont make enough money.
the panto has negative cashflow sometimes as it has to pay all its fixed costs and all its props,costumes and advertising upfront and is needed before a ticket can be sold.but all the ticket sales and refreshment sales wull then pay back the money after the seson has ended.negative cash flow is not bad as long as you can regaine that money in a later time
The panto should be slightly concerned about these peroids of negative cashflow as although most of their money is generated around the Christmas time, if they do not manage to generate the money required to support the other months of losses, they will eventually go out of business. or have to take drastic measures to try and keep the business alive.
The panto sometimes has negative cashflow as it has to pay for it's running costs such as electricity, also staff and tax. if it is paying that while the business is not performing any shows it will lose money, however it is worth it as when the panto season starts they will get a large income so the revenue will outweigh the expenditures in the long term.
the cash flow problems are mostly with small businesses because they dont always have more money coming in then going out.also they should be concerned about the popular periods because they might not make enough money.
The Panto has to pay its outgoing costs first, then once all these are done they must try to earn back the money with ticket sales, sometimes a play will not be as popular so they dont make as much profit, if they make a profit at all. The Panto should not worry however as the annual christmas plays are a sell out for 8 weeks of the year and still have customers either side of these weeks, the panto must bring in as much money as possible from these weeks to fund the following year.
The thatre has negative chashflow because money doesnt come in all year round. The pantomimes are mostly popular in the months just before december, and the few months after. Even if the theatre doesn't have a pantomime running, it still has to pay fixed cost such as; council tax, business rates and standing charges to gas and electricty. Also some workers work full time such as the caretaker, who still needs to be payed. The theatre shouldn't worry about these few months of negative chashflow because they should gain enough money in the peak months - as they are almost always at sell out - to keep the theatre running in the less active months.
They might get negative cashflow because in the months when their shows aren't as popular, they still have to pay their running costs and they might not get enough revenue to get back the money. The Panto shouldn't be concerned becuase although they may lose money in osme months, they will gain it back in the more popular months.
Panto sometimes has negative cashflow because cash comes in on an irregular basis but they still pay fixed costs even when there is no performance. For instance they have to pay for variable costs like gas and electricity as well as fixed costs like council tax. The also have to pay for employees that are full time and can't take on temperorary staff such as caretakers. Pantomimes are usually more popular during the months before December and the weeks leading up to Christmas. Pantomimes shouldn't be concerned of negative cashflow because they have busier moths than other. That means the peak months should gain enough revenue to cover the costs of months where they are getting negative cashflow due to the irregular cash coming in.
the panto sometimes has negative cashflows because it dosent have pantomimes on all year round. The panto shouldnt be worried about the negative cash flow because when christmass time comes it will earn lots of money
The Panto should not be concerned by the negative cash flow because Pantomimes are inly on normally around christmas time and they will make most of their money from the tickets actually at the event, they cannot make money if there is no Panto in the first place. To make sure they do not have a higher expenditure than revenue they could host them more often, outside panto season as well as inside panto season.
ReplyDeleteAndrew Lee:)
the panto shouldnt be concerned about the periods of negavtice cashflow as long as they can make enough money, in the popular pirods, to support them throughout the year. however they should be concerned if within the popular periods they dont make enough money.
ReplyDeletesam edwards
the panto has negative cashflow sometimes as it has to pay all its fixed costs and all its props,costumes and advertising upfront and is needed before a ticket can be sold.but all the ticket sales and refreshment sales wull then pay back the money after the seson has ended.negative cash flow is not bad as long as you can regaine that money in a later time
ReplyDeleteby Jamie Bobillier
The panto should be slightly concerned about these peroids of negative cashflow as although most of their money is generated around the Christmas time, if they do not manage to generate the money required to support the other months of losses, they will eventually go out of business. or have to take drastic measures to try and keep the business alive.
ReplyDeleteAdam Walker
The panto sometimes has negative cashflow as it has to pay for it's running costs such as electricity, also staff and tax. if it is paying that while the business is not performing any shows it will lose money, however it is worth it as when the panto season starts they will get a large income so the revenue will outweigh the expenditures in the long term.
ReplyDeletethe cash flow problems are mostly with small businesses because they dont always have more money coming in then going out.also they should be concerned about the popular periods because they might not make enough money.
ReplyDeletezak smeeth
The Panto has to pay its outgoing costs first, then once all these are done they must try to earn back the money with ticket sales, sometimes a play will not be as popular so they dont make as much profit, if they make a profit at all. The Panto should not worry however as the annual christmas plays are a sell out for 8 weeks of the year and still have customers either side of these weeks, the panto must bring in as much money as possible from these weeks to fund the following year.
ReplyDeleteConnor Wilson
Alex Fuller
ReplyDeleteThe thatre has negative chashflow because money doesnt come in all year round. The pantomimes are mostly popular in the months just before december, and the few months after. Even if the theatre doesn't have a pantomime running, it still has to pay fixed cost such as; council tax, business rates and standing charges to gas and electricty. Also some workers work full time such as the caretaker, who still needs to be payed. The theatre shouldn't worry about these few months of negative chashflow because they should gain enough money in the peak months - as they are almost always at sell out - to keep the theatre running in the less active months.
They might get negative cashflow because in the months when their shows aren't as popular, they still have to pay their running costs and they might not get enough revenue to get back the money. The Panto shouldn't be concerned becuase although they may lose money in osme months, they will gain it back in the more popular months.
ReplyDeleteLucy Kyne :)
Panto sometimes has negative cashflow because cash comes in on an irregular basis but they still pay fixed costs even when there is no performance. For instance they have to pay for variable costs like gas and electricity as well as fixed costs like council tax. The also have to pay for employees that are full time and can't take on temperorary staff such as caretakers. Pantomimes are usually more popular during the months before December and the weeks leading up to Christmas. Pantomimes shouldn't be concerned of negative cashflow because they have busier moths than other. That means the peak months should gain enough revenue to cover the costs of months where they are getting negative cashflow due to the irregular cash coming in.
ReplyDeleteJames Yau (Lee)
the panto sometimes has negative cashflows because it dosent have pantomimes on all year round. The panto shouldnt be worried about the negative cash flow because when christmass time comes it will earn lots of money
ReplyDelete