Be able to produce a business case for a travel and tourism enterprise within financial constraints - Travel and Tourism - page 89

Travel Outback Ltd.
Month

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Totals

Receipts
Commission on travel sales 8,000 7,500 6,500 6,500 7,500 4,500 3,500 5,500 6,000 7,500 5,000 68,000

Commission on insurance 800 750 650 650 750 450 350 550 600 750 500 6,800

Commission on foreign exchange 200 175 180 180 175 150 100 160 170 180 150 1,820

Owner's capital invested 15,000 10,000 5,000 30,000

Total Receipts (a) 15,000 9,000 8,425 7,330 7,330 8,425 5,100 13,950 6,210 6,770 13,430 5,650 106,620

Payments
Wages 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 39,000

Computer leasing 750 750 750 750 750 750 750 750 750 750 750 750 9,000

Post and stationery 225 225 225 225 225 225 225 225 225 225 225 225 2,700

Rent and rates 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000

Heat and light 700 500 450 550 2,200

Telephone [phone],300

Internet services 5,000 500 500 500 500 500 500 500 500 500 500 500 10,500

Insurance and legal 2,500 2,500

Travel and subsistence 500 350 250 450 1,550

Marketing and promotion 3,500 500 500 500 500 500 500 500 500 500 1,500 500 10,000

Staff training 1,500 1,000 1,000 3,500

Fixtures and fi ttings 13,000 2,500 1,250 16,750

Professional fees 1,300 1,300

PAYE and NI 350 350 350 350 350 350 350 350 350 350 350 350 4,200

Bank interest and charges 350 350 350 350 1,400

Total Payments (b) 33,125 6,825 8,525 6,825 8,175 10,775 6,825 6,825 8,375 7,825 9,075 8,725 121,900

Net cash fl ow (a - b) -18,125 2,175 -100 505 -845 -2,350 -1,725 7,125 -2,165 -1,055 4,355 -3,075 -15,280

Opening Bank Balance 0 -18,125 -15,950 -16,050 -15,545 -16,390 -18,740 -20,465 -13,340 -15,505 -16,560 -12,205

Closing Bank Balance -18,125 -15,950 -16,050 -15,545 -16,390 -18,740 -20,465 -13,340 -15,505 -16,560 -12,205 -15,280

Fig 2.5 - Example of a cash l ow forecast for a travel agency