INSTRUCTIONS To view the steps and the videos for this assignment follow these steps: 1. Go to https://online.fullsail.edu 2. Login user name : XXXXXXXXXX Password: Sanaamarwan@94 3. After you login...

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INSTRUCTIONS To view the steps and the videos for this assignment follow these steps: 1. Go to https://online.fullsail.edu 2. Login user name : [email protected] Password: Sanaamarwan@94 3. After you login choose Principles of business finance-online 4. then click on week 1 financial forecasting then choose week 1 overview- finance & forecasting and after you finish go back and choose financial forecasting assignment and you will find all the steps and the instructions for this assignment. New!   Listen to Course Materials Read Aloud: Download Chrome Browser and Install Read Aloud.  Then highlight desired text, hold down ctrl and click, and select "Read Aloud Selected Text" This week, you're going to help develop the financial statements for an entertainment business.  Introducing the 2Live Venue, a small 300-capacity startup business where indie bands perform concerts four times per week. In real life, you'll be required to start from scratch and completing this task could take weeks, even months. For this assignment, many of the numbers have been entered already. Your job is to complete some of the more meaningful portions of the task of forecasting. I'll walk you through each step below. Happy Forecasting!!  Assignment Objectives:  · Develop and explain assumptions underlying estimates in budgets and pro forma financial statements · Describe components of sales forecast · Develop a pro forma statement(s) from budget assumptions   Deliverables Your deliverables include only one file: the financial forecast in excel format (Blank Template is below). No other documents should be submitted. If you worked in a group on this assignment, please include everyone's last name in your saved excel file when submitting. · FinancialForecastingTEMPLATE.xlsm 77 KB · Financial Forecasting GUIDE.pdf 177 KB · Financial Forecasting Introduction.pdf 24 KB Skim through this pdf: Ticketonomics, Part II from Billboard Magazine.   Goals & Objectives Two major goals of financial forecasting: 1. Make the business profitable within two years (break even on income statement) 2. Ensure that the business does not run out of cash (end of period balances on the cash flow statement all are positive) Your grade will be based on how well you achieve the following real-world goals & objectives just as you would do if you completed a financial forecast for a project at an entertainment company or for your own startup business:   Points by Objective                 Possible Goal #1: Profitable within two years    20 Goal #2: Cash flow positive    20 Sales projections calculated correctly    10 Realistic growth pattern in sales    10 Marketing budget was completed    10 marketing budget spent entirely    5 Marketing is targeted    5 All ownership shown   10 Reasonable capital raised/valuation   10 Total Possible  100 Sales Projections Two tasks should be completed here: 1. Forecast the ticket sales of the venue for the entire two years by quarter (ticket sales unit volume, which is the quantity of tickets sold). 2. Forecast the retail price of the merchandise that is purchased by an average merchandise buyer.Note: The unit volume for this is already calculated automatically using an assumption that 30% of ticket buyers will buy merchandise. Approach this portion of the financial forecast by thinking about the effect that marketing will have on your sales: · marketing efforts enable new businesses to grow because of the network effect (for example, some customers will attend one of your shows, and if they like it, they will tell others).  · multiple/repeat marketing messages are pursued in order to get the attention of your prospects within the context of an over-marketed society and fragmented attention span. What does this mean? The network effect combined with repeat marketing messages means that the sales of a well marketed new business will grow exponentially; not in a straight line. Please review the following blog post for more:   The Pattern of Your Sales Forecast 5 Key Tips Sales Forecasting Business Owners Marketing Budget Use one of Full Sail's library resources (Music Business Association) to gain insight into your customers and custom tailor your marketing budget to reflect these insights.  Spend all of the marketing budget of $43,200 for the two years by focusing on the top 3 or 4 marketing channels that directly pertain to your customer (based on demographics, etc.)  Ask yourself: · what types of marketing are most likely to bring in new customers and generate the level of sales you projected? · What types of marketing are most likely to directly reach your desired / ideal customer. While you're on this topic, learn about the latest development in the marketing world - a new customer-centric platform similar to Google Adwords but for ALL marketing channels!  Capital Investments I call this section of the workbook "the Shark Tank page" because it explains, in simple terms, who owns the business (owner and investor section), how much ownership is theirs (% equity), and how much money ($ investment amount). The total amount of money contributed from both the owner and investor(s) should equal a large enough amount to completely compensate for (or make up for) the negative "end of month" balance on your cash flow statement.  Please watch the segment of ABC's Shark Tank below. WATCH THE VIDEOS
financialforecastingtemplate-zzrgt4fn.xlsm assignment-1-mkiyaz4y.docx
Answered 3 days AfterApr 02, 2021

Answer To: INSTRUCTIONS To view the steps and the videos for this assignment follow these steps: 1. Go to...

Preeta answered on Apr 05 2021
153 Votes
Sales Projections
            Net Income indicator                                                    865,022
            Cash Flow indicator
        Sales Projections
                        Year One                Year Two                Year One    Year Two    2-Year Total        Year One                Year Two
                        Q1    Q2    Q3    Q4    Q1    Q2    Q3    Q4    Total    Total            1    2    3    4    5    6    7    8
            Ticket Sales                                                                                                         slope
                Unit Volume        8000    9000    10000    12000    15000    15000    15000    15000    39,000    60,000    99,000        $668    $9,000    $10,000    $12,000    $15,000    $15,000    $15,000    $15,000        14332    7    2,047.43
                Unit Price        $20    $20    $20    $20    $20    $20    $20    $20        -    -            Q2 vs. Q1    Q3 vs. Q2    Q4 vs. Q3    Q1 vs. Q4    Q2 vs. Q1    Q3 vs. Q2    Q4 vs. Q3
                Cost per Unit Sold        $0.03    $0.03    $0.03    $0.03    $0.03    $0.03    $0.03    $0.03        -    -            13%    11%    20%    25%    0%    0%    0%
                Gross Sales        $160,000    $180,000    $200,000    $240,000    $300,000    $300,000    $300,000    $300,000    $780,000    $1,200,000    $1,980,000                                            LINEST    SLOPE    L/S
                (Cost of Goods Sold)        $240.00    $270.00    $300.00    $360.00    $450.00    $450.00    $450.00    $450.00                        Sales growing over time?            1                    1765.7619047619    2,047    1
                (Commission Percentage)        15%    15%    15%    15%    15%    15%    15%    15%        -    -            88%    overall rate
                Net Sales        $135,796    $152,771    $169,745    $203,694    $254,618    $254,618    $254,618    $254,618    $662,006    $1,018,470    $1,680,476            points for this dynamic (allocation)            25%
                                                                            your growth points            25%
            Beverages
                Unit Volume        5600    6300    7000    8400    10500    10500    10500    10500    27,300    42,000    69,300            Perfectly Exponential         L/S =    2
                Unit Price        $10    $10    $10    $10    $10    $10    $10    $10            -            Perfectly Linear        L/S =    1
                Cost per Unit Sold        $1    $1    $1    $1    $1    $1    $1    $1            -            This Forecast        L/S =    0.86
                Gross Sales        $56,000    $63,000    $70,000    $84,000    $105,000    $105,000    $105,000    $105,000    $273,000    $420,000    $693,000            As a proportion out of 100%            43%
                (Cost of Goods Sold)        $5,600    $6,300    $7,000    $8,400    $10,500    $10,500    $10,500    $10,500                        points for this dynamic (allocation)            75%
                (Commission Percentage)        0%    0%    0%    0%    0%    0%    0%    0%    -    -    -            your growth points            32%
                Net Sales        $50,400    $56,700    $63,000    $75,600    $94,500    $94,500    $94,500    $94,500    $245,700    $378,000    $623,700
                                                                            YOUR TOTAL POINTS %            57%
            Merchandise                                                                Total Points Possible            20
                Unit Volume        2400    2700    3000    3600    4500    4500    4500    4500    11,700    18,000    29,700            Your Total Points            11
                Unit Price        $50    $50    $50    $50    $50    $50    $50    $50    -    -    -
                Cost per Unit Sold        $3.25    $3.25    $3.25    $3.25    $3.25    $3.25    $3.25    $3.25    -    -    -
                Gross Sales        $120,000    $135,000    $150,000    $180,000    $225,000    $225,000    $225,000    $225,000    $585,000    $900,000    $1,485,000
                (Cost of Goods Sold)        $7,800    $8,775    $9,750    $11,700    $14,625    $14,625    $14,625    $14,625
                (Commission Percentage)        50%    50%    50%    50%    50%    50%    50%    50%    -    -    -
                Net Sales        $56,100    $63,113    $70,125    $84,150    $105,188    $105,188    $105,188    $105,188    $273,488    $420,750    $694,238
            Total: All Products/Services
                Total Unit Volume        16,000    18,000    20,000    24,000    30,000    30,000    30,000    30,000    78,000    120,000    198,000
                Total Gross Sales        $336,000    $378,000    $420,000    $504,000    $630,000    $630,000    $630,000    $630,000    $1,638,000    $2,520,000    $4,158,000
                (Total Cost of Goods Sold)        $13,640     $15,345     $17,050     $20,460     $25,575     $25,575     $25,575     $25,575     $66,495    $102,300    $168,795
                (Total Commissions Paid)        $80,064     $90,072     $100,080     $120,096     $150,120     $150,120     $150,120     $150,120     $390,312    $600,480    $990,792
                Total Net Sales        $242,296    $272,583    $302,870    $363,444    $454,305    $454,305    $454,305    $454,305    $1,181,193    $1,817,220    $2,998,413
                Assumptions:
                Merchanside (locked)        30%    of ticket buyers buy merchandise
                Beverages (changeable)        70%    of ticket buyers buy an average of 1 beverages
                Beverage Industry Average for U.S. Bar & Nightclub (estimate)
                65% order drinks most to all the time with males ordering more frequently than females. Surprisingly, Millennials order less frequently than older consumers
                http://www.nciaa.com/content.aspx?page_id=22&club_id=160641&module_id=29898
                The average consumer order 2.3 drinks per occasion with males ordering more than females and Millennials ordering more than the older consumers.
FORECAST SUMMARY
http://www.nciaa.com/content.aspx?page_id=22&club_id=160641&module_id=29898
Marketing Budget
        Marketing Budget
            Purpose/Strategy Key: (Optional)
PB: Personal Branding
BA: Brand Awareness/Brand Building
SP: Product/Service Sampling, Trial
L&R: Brand Loyalty/Customer Rewards     Purpose (optonal)    Pre-Launch    Year One                Year Two                Total
                        Q1    Q2    Q3    Q4    Q1    Q2    Q3    Q4                Variance        1,566,767
        Tangible Marketing                                                            Quartile (1st)        100        
            Brochures, flyers, Mobile signs, bus/metro signs, billboards            $100    $100    $100    $100    $100    $100    $100    $100    $800            Quartile (3rd)        500        800
            Samples, premiums, logo merchandise, "swag"            $100    $100    $100    $100    $100    $100    $100    $100    $800            Difference        400        800
        Media Advertising
            Print: newspaper, magazines                                                            Dispersion    13%        
            Television, radio                                                                        
            Television, radio                                                            Greater than or equal to 25%?    FALSE        
            Banner Ads, Paid Search Engine Marketing            $200    $200    $200    $200    $200    $200    $200    $200    $1,600            Percent of 25%        53%
        Social Media Marketing                                                                Point Multiplier    53%        
            Paid Facebook promotions, Twitter ads, Linkedin ads            $500    $500    $500    $500    $500    $500    $500    $500    $4,000                Dispersion Total Points    5        4000
            Social media contests, Deal-of-the-day: Groupon, Google Offers, LivingSocial                                                            Your Dispersion Points    2.6666666667        
            Tweetups, Meetups                                                                        
        Guerilla & Viral Marketing                                                            Fewer than 6 types?        FALSE
            Sticker bombing, flyposting, Flashmobs, streetart                $1,000                $1,000            $2,000            More than 0 types?        TRUE        2000
            Street teams, campus promotions, Crowd-sourced ads                        $5,000                $5,000    $10,000                Point...
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