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Aim of Assignment: To understand and apply the processes of cost estimating and cash flow Details You are a project manager with an events organisation company who is considering running a 2 day music...

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Aim of Assignment:
To understand and apply the processes of cost estimating and cash flow
Details
You are a project manager with an events organisation company who is considering running a 2 day music festival. The project objectives are to provide the community with a music festival featuring international and local bands and DJ’s - and for your organisation to make a minimum 25 % profit.
The project sponsor for this project is Charlie Reynolds the Director of Entertainment Events. In your first meeting with Charlie he discussed the scope of the project and asked you to submit a business case in a report format which provides an estimate, budget and cash flow and any conclusion
ecommendations for the proposed music festival.
The following minimum scope statement was provided:
1. 2-day music festival in Australia to be held in late 2018
1. four high-profile international bands - two per day
1. the rest of the programme to be filled with local and Australian bands
1. target market is XXXXXXXXXXyear olds
1. the event will be licensed
1. camp sites, food catering and hygiene facilities are to be provided for festival attendees
1. all other necessary requirements are to be included and costed
1. expected attendance of 5000 – 6000 over the two days
Your submission must contain the following sections:
1. executive summary including any conclusions and recommendations
1. a detailed list of the contents of the estimate and the respective costs. All sources of cost information must be provided through embedded screen shots. No intense research is required in a
iving at the dollar amounts – sources must not be contacted directly ie no phone calls enquiring about costs etc. Reasonable costs through web page information will suffice and should be easy to obtain given that this is not a unique project. A clear and full explanation of the scope of each item (ie quantity, type, etc) must be provided (including any necessary calculations required to a
ive at the cost) and a cost per ticket.
1. a detailed budget from the 1st March 2018 until final project completion, showing the estimated costs allocated across each of the months in the project life cycle. The budget must be set out in the form of a spreadsheet
1. a detailed cash flow indicating all costs and revenues from 1st March 2018 to the end of the project including working capital requirements based on market related ticket prices and sales
1. Conclusion and recommendations (note your assignment may prove that the music festival is not feasible – Marks will not be deducted as long as there is evidence to support your recommendation)
Your submission should be in a business case format that will help Charlie decide whether the company should proceed with the music concert and marks will also be awarded for the business case feel and structure of your submission.
Answered Same Day Apr 16, 2020

Solution

Soumi answered on Apr 21 2020
138 Votes

Simple budget
    Particulars     Amount ($)
    Venue     16000
    High profile bands    40000
    local band    5000
    Decoration    20000
    Catering    120000
    Promotion    3000                            208125
    Medical     500
    Miscellaneous    2000            208125
    Total cost     206500
        258125                -51625
                                    51625
        51625
                        208125
                        34.6875
Detailed Budget
    Detailed budget from March to Decembe
    Particulars    March    April    May    June    July    August    September    October    November    Decembe
    Openng Balance    0    -200    -400    -600    2200    -1200    13400    72800    98400    98625
    Revenue:
    Sponsorships    0                    10000    10000    12000    18000    10000
    Tickets    0    0    0    3000    7000    15000    60000    80000    33125    0
    Expenses:
    Venue     0    0    0    0    0    0    0    8000    0    8000
    High profile bands    0    0    0    0    10000    10000    10000    10000    0    0
    local band    0    0    0    0    0    0    0    0    2500    2500
    Decoration    0    0    0    0    0    0    0    8000    8000    4000
    Catering    0    0    0    0    0    0    0    40000    40000    40000
    Promotion    200    200    200    200    400    400    600    400    400    0
    Medical     0    0    0    0    0    0    0    0    0    500
    Miscellaneous    0    0    0    0    0    0    0    0    0    2000
    Closing Balance    -200    -400    -600    2200    -1200    13400    72800    98400    98625    51625
cash flow
    CASH FLOW STATEMENT
    Particulars    Amount ($)    Amount ($)
    Cash Flow from operating activities
    Venue     -16000
    High profile bands    -40000
    local band    -5000
    Decoration    -20000
    Catering    -120000
    Promotion    -3000
    Medical     -500
    Miscellaneous    -2000
    Sponsporships    50000
    Collection from sale of tickets    208125
    Total cash flow from operating activities        51625
    Cash Flow from investing activities
    Total cash flow from investing activities        0
    Cash Flow from Financing activities
    Total cash flow from Financing activities        0
    Total cash flow from operating, investing and financing activities        51625
    Add: Opening cash and cash equivalents        0
    Closing cash and cash equivalents        51625
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