Touroperator Sun Shine 1 1 19 January 2017

Touroperator Sun. Shine 1. 1 19 January 2017 It’s not going very well, too little quest! 1

It’s not going very well, do something! Next period Profit and enough cash! Revenue € 4, 800, 000 Costs of sales Gross margin Operational costs Staff Depreciation Interest € 3, 840, 000 € 960, 000 € 575, 000 € 375, 000 € 60, 000 € 20, 000 Loss 2 -€ 70, 000 Costs of sales: 80% of revenue

3 We start with a quiz questions about the Balance Sheet questions about the Profit & Loss Account questions about the Cash Budget You only get points with a good answer, but more points with a quick answer.

Quiz Voor docent Ga naar create. kahoot. it click in het menu op public kahoots zoek: game Sun. Shine Dan: Play - Launch - Start en speel op de telefoon Students in class Play the quiz on your cellphone Go to: www. Kahoot. it Fill in the pincode and a nickname And wait for the questions 4

Game 5 Goal: Calculate the changes in the Financial Statements Second goal: Profit and enough cash for Touroperator Sun. Shine • Your decisions don’t effect other teams. • As a consequence of the decicions for each team the reality is different. • Communicate with teammembers about your decisions!.

You are the manager of Touroperator Sun. Shine. The Balance sheet and Profit & Loss Account at the start are given. 6 What happened: • • • A loan and investment (round 1) ‘Discount’ Promotion (round 2) ‘Pay later’ promotion (round 3) Additional loan or repayments (round 4) Discount for paying the Trade payables (round 5) , VAT Who’s the best?

7 Balance Sheet 1/1/2016 Fixed assets 600, 000 Equity 350, 000 Trade Receivables Cash balance 50, 000 100, 000 Long-term Liabilities Short-term Liabilities Trade Payables 200, 000 100, 000 Total 750, 000

Forms and results on website: http: //jooplengkeek. nl/sunshine. html 8

9 Attention: § Fill in exactly the same name as in previous round § all amounts without euro sign § in thousands § without point or comma § use comma for hundreds

Round 1 Balance Sheet (200 punten) 10 Choice: Loan: ? ; Short-term or Long-term Investment: (to pay immediately) a) An App: € 50, 000 or € 75, 000 50% fixed assets ; 50% current assets (costs charged to operational costs in round 2) Or b) An Event € 100, 000 or € 125, 000 ; 100% current assets (costs charged to operational costs in round 2) Or c) Accommodation: € 400, 000 or € 500, 000 ; 100% fixed assets Calculate fixed assets, trade receivables, cash, equity, long-term liabilities, short-term liabilities

Round 2 Profit and Loss Account (200 points) Depending on your decision in round 1 Investment (*€ 1. 000) Additional revenue 50 75 100 125 400 500 700 1, 100 1, 400 1, 500 1, 000 1, 200 Costs of sales: 80% of revenue The revenue will be received immediately. The supplier must be paid immediately. 11

Round 2 Profit and Loss Account • • Depreciation 10% of fixed assets Interest 5% of long-term loan Interest 10% of short-term loan Repayments of loan: 20% of long-term loan (based on the new Balance sheet) Choice: Yes/No “Discount” Promotion: Costs € 10, 000 ; additional revenue € 500, 000 (commission 10%) Costs € 20, 000 ; additional revenue € 700, 000 (Commission 10%) Calculate : Revenue, depreciation, interest, profit 12

Round 3 Profit and Loss Account 13 (200 points) Choice: “Pay later” Promotion: the customers may pay later (in the period after the game) Costs € 50, 000 ; revenue € 600, 000 (commission 20%) Costs € 100, 000 ; revenue € 900, 000 (commission 20%) But if You have chosen for the discount promotion in round 2, the margin is 10%. The customer pays later, the supplier must be paid immediately. Calculate: Revenue, depreciation, interest and profit

Round 4 The Cash Budget (200 points) 14 Review the Profit & Loss Account All mentioned costs are also expenditure. But please note the actions of round 2 and round 3! 50% of the trade payables must be paid in this period. 80% of the trade receivables will be paid. The cash balance at the end of the period must be positive. Decision: Additional loan of the bank? (interest 15% must be paid in round 6 after the game ) Additional repayments of the loan? (saving 10% interest immediately) Calculate: Cash balance (at the end of the period) and the profit

Round 5 The Cash Budget (200 points) 15 Received VAT from customers: € 50, 000 Paid VAT to supplier: € 40, 000 Choice: If You pay the remaining Trade Payables You get a discount of 10% Decision: Additional loan of the bank? (only in amounts of € 10, 000) (interest 15% must be paid in round 6 after the game, costs in Profit & Loss Account this round) Additional repayments of the loan are not permitted in round 5 Calculate: Cash balance (at the end of the round) and the profit Penalty points if profit or cash are negative