Columbia Arena Company
Pro Forma Operating Budget - 2016
			2015		2016
Revenues:
Rent from Sports Teams			$465,000		$490,575.00
Rent from Events			$729,000		$769,095.00
Equipment Rent			$27,600		$29,118.00
Concessions (Gross)			$2,512,000		$2,612,480.00
Merchandise (Gross)			$244,600		$244,600.00
Advertising and Sponsorships			$580,400		$580,400.00
Naming Rights			$327,000		$327,000.00
Box Office			$150,560		$147,097.12
Suite Revenue			$781,700		$781,700.00
Club Seat Revenue			$549,360		$549,360.00
Ticket Fees			$654,000		$638,958.00
Parking			$482,010		$470,923.77
Total Revenues			$7,503,230		$7,641,306.89
Less COGS:
Concessions COGS			$1,507,300		$1,575,128.50
Merchandise COGS			$122,300		$125,357.50
Total COGS			$1,629,600		$1,700,486.00
Gross Profit			$5,873,630		$5,940,820.89
Operating Expenses:
Personnel			$981,000.00		$1,005,525.00
G&A			$218,000.00		$223,450.00
Non-reimbursed Event Costs			$163,500.00		$167,587.50
Utilities			$490,500.00		$529,740.00
Insurance			$272,500.00		$272,500.00
Maintenance			$369,800.00		$379,045.00
Contract Services			$119,900.00		$119,900.00
Marketing and Promotion			$218,000.00		$218,000.00
Management Fee			$109,000.00		$109,000.00
Reserve			$163,500.00		$163,500.00
Total Operating Expenses			$3,105,700.00		$3,188,247.50
Operating Income (Loss)			$2,767,930.00		$2,752,573.39
2. After you have calculated the 2016 budget, suppose your boss asks you to revise it so that overall revenues increase by 4% and operating expenses decrease by 1.5%. Based on current trends in facility management, what revenues do you anticipate can be increased? What expenses can be decreased? Use the 2016 budget that you created in Problem 1 and create a new 2016 budget based on the revenue increases and expense decreases outlined in Problem 2 and your work on Problem 2a.