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please show all your workings, thanks a lot. Players Ltd is a theatre company producing a variety of different plays with different cast members, throughout
please show all your workings, thanks a lot.
"Players Ltd" is a theatre company producing a variety of different plays with different cast members, throughout the year. The company is resident at the Palace Theatre for 4 months of each year and tours to different theatres in the country during the other 8 months. The company has a financial year ending on 31st March. The company wishes to create a budget for the year to 31st March 2024. The company's plans and financial predictions for the financial year are: Touring takes place from 1st April to 30th September and from 1st February to 31st March. Touring actors and producers' costs are 200K per month for each of the 8 months of touring. Rent and tour venue costs are 720K split equally over the 8 touring months. Set transport and construction at touring venues costs a total of 40K for the eight months. During 1st October to 31st January the company presents its Christmas show. Actors and producers' costs for these four months total 800K. Managerial support is 200K. These costs are expected to be split equally over each of the four months. The rent of the Palace theatre is 240K for the period used by Players Ltd. Set design, creation and installation costs are a total of 100K for the Palace Theatre shows, and for the other venues a total of 160K for eight months. These are paid in equal monthly amounts for those months. Income from ticket sales: Projected ticket sales from the Palace Theatre performances are planned to be a total of 1,600K for the four months and from performances at the other UK theatres 2,400K total for the eight months. Extra net receipts are earned from sales of programmes etc.at 5% of ticket sales for each month. Grants and other income are received from: - The National Arts Council which donates each year. The donation received in January 2023 was 500K and it is expected that the 2024 payment will be 600K on 1st January 2024. - Local Authorities grants are expected to be 360K paid on 1st April 2023 - Schools' Learning programmes will earn 250K in total for the year: 30K in August and the remainder equally throughout the other months. - Donations, Legacies and other Fund Raising Schemes will raise 360K over the year. Other costs: Directors' annual salaries and expenses are 180K payable monthly. Annual Managerial and Support Staff costs are 600K payable monthly. equired: (a) Using the information above prepare an accruals based quarterly budget for the four quarters of the year ended 31.3 .24 (12 marks) (b) Comment on the information that your budget has reveal about the different activities. Overall where is the company successful? Advise the management of areas which need investigation or improvement. (5marks) (c) Describe the usefulness of an accrual based budget. Explain the ways it will be used during the year. (4 marks) (d) Explain the additional information which would need to be provided to prepare a cash budget. (4 marks)Step by Step Solution
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