Cinema

Cash budget from Sep to Dec

Sep Oct Nov Dec
￡ ￡ ￡ ￡
Receipts
Cash sales of tickets 58,800.00 61,740.00 58,800.00 68,600.00
Cash sales of season tickets - - 3,750.00 -
Cash sales of food&drink 23,520.00 24,696.00 23,520.00 27,440.00
Total receipts 82,320.00 86,436.00 86,070.00 96,040.00

Payments
Cost of food&drink 10,976.00 9,408.00 9,878.40 9,408.00
License fee - 1,000.00 - -
Fixed film fee 2,550.00 2,975.00 2,550.00 2,975.00
Distributor 24,010.00 20,580.00 21,609.00 20,580.00
Other expenses 17,000.00 17,000.00 17,000.00 17,000.00
Total payments 54,536.00 50,963.00 51,037.40 49,963.00

Opening balance (124,890.00) (97,106.00) (61,633.00) (26,600.40)

Net cash flow 27,784.00 35,473.00 35,032.60 46,077.00
Closing balance (97,106.00) (61,633.00) (26,600.40) 19,476.60

b) Explain the benefits of preparing a cash budget for the cinema.

A cash budget helps the cinema owners analyze revenue trends, sales patterns and consumer behavior.
A cash budget can help the cinema owners control costs, avoid overspending and waste, it can also help allocate resources appr

c) Explain what your cash budget is telling you. Do they have a healthy cash position. What recommendations might you
Net cash flow is positive and continues to increase.The cash budget indicates that the cinema will have a healthy cash position i
Cost Control: While the cinema's cash position looks healthy, it's important to control costs and manage expenses to maintain p
Marketing: Consider marketing strategies to increase the expected 10% fall in ticket sales in October, such as special promotion

d) Streaming services, virtual reality headsets and multiplex mergers are examples of threats to cinemas’ business mode
The independent cinema can provide personalized services, such as watching football games , to attract customers to become m
 Total
￡

247,940.00
3,750.00
99,176.00
350,866.00

39,670.40
1,000.00
11,050.00
86,779.00
68,000.00
206,499.40

(124,890.00)
144,366.60
19,476.60

an also help allocate resources appropriately to improve financial efficiency by forecasting and monitoring expense.

What recommendations might you make to the owners based on your cash budget?
a will have a healthy cash position in all months
and manage expenses to maintain profitability.
October, such as special promotions or events.

hreats to cinemas’ business models. There are others. Make notes on how you think cinemas might respond to their changing comp
s , to attract customers to become members and increase customer loyalty.
d to their changing competitive environment and what implications there might be on the finances of cinemas. Do you think an inde
inemas. Do you think an independent cinema like this one can survive?