Question | Answer |
In April all 2000 tickets will go on sale for £25 each. | Selling price
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In February he has to pay in advance for rental of the marquees (£9000). | Rent
| In March he has to pay a deposit to the security team in (£12500) | Security
| In March he also has to pay the brewery for him to sell at the festival (£20000) | Drinks
| In April the food van owners will pay Freddy for their pitches (£5000) | Inflow 1
| In April the 1st festival will happen. Freddy estimates total bar sales will be £45000. | Sales
| 1 week after the festival (in May) he will have to pay the bands and the wages to bar staff (£20000) | Costs outflow
| Freddy’s insurance premium for the 2nd festival will be due in June (£8000) | Insurance
| In May Freddy will have to pay in full for rental of marquees for the 2nd festival (£9000) | Rent
| Tickets go on sale in August, normally all 2000 are sold for £25 each | Estimated Sales
| In July he will have to pay to reserve the security team (£12500) | Deposit for Security
| The 2nd festival usually sells more drink so in July Freddy orders £25000 of stock from the Brewery | Stock
| In August people selling food at the festival will pay him their pitch fees (£5000) | Sales Food
| Freddy predicts his bar takings will be £55000 in August | Bar sales
| Straight after the 2nd festival (August) Freddy will pay the bands and staff wages totalling £20000 | Wages |