Columbia Arena Company 2019 Operating Budget 2019 Revenues: Rent from Sports Teams $425,934.00 Rent from Events $668,636.00 Equipment Rent $25,292.00 Concessions (Gross) $2,304,703.00 Merchandise (Gross) $224,393.00 Advertising and Sponsorships $532,500.00 Naming Rights $300,000.00 Box Office $138,120.00 Suite Revenue $717,185.00 Club Seat Revenue $504,000.00 Ticket Fees $600,000.00 Parking $442,212.00 Total Revenues $6,882,975.00 Less COGS: Concessions COGS $1,382,822.00 Merchandise COGS $112,196.00 Total COGS $1,495,018.00 Gross Profit $5,387,957.00 Operating Expenses: Personnel $900,000.00 G&A $200,000.00 Non-reimbursed Event Costs $150,000.00 Utilities $450,000.00 Insurance $250,000.00 Maintenance $339,267.00 Contract Services $110,000.00 Marketing and Promotion $200,000.00 Management Fee $100,000.00 Reserve $150,000.00 Total Operating Expenses $2,849,267.00 Operating Income (Loss) $2,538,690.00 1. The Columbia Arena Company formed in 2019 and uses the accrual basis of accounting. Using the companys 2019 budget, develop a pro forma operating budget for 2020 based on the following revenue and expense estimates: a. It is forecasted that costs and expenditures will change in 2020 as follows: i. Merchandise COGS (cost of goods sold), G&A, (non-reimbursed) Event Costs, and Maintenance will increase by 4.7%. ii. Concessions COGS will increase by 7.5%. iii. Utilities will increase by 8.0%. iv. Personnel will increase by 1.5%. v. Insurance, Contract Services, Marketing (and promotion), Management Fee, and Reserve are forecasted to remain the same. b. The Arena is expected to generate cash receipts in 2020 as follows: i. All rent will increase by 4.7%. ii. Concessions Gross will increase by 5.0%. iii. Merchandise Gross, Suite Revenue, Club Seating Revenue, Advertising (and sponsorships) Revenue, and Naming Rights are forecasted to remain the same. iv. Box Office, Parking, and Ticket Fee revenues will decrease by 2.7%.