SYDNEY MARDI GRAS

Financial Performance of Sydney Mardi Gras

Financial Performance of Sydney Mardi Gras

Introduction

The major objective in the topic is to assess the Financial Performance of Sydney Mardi Gas. The company is involved in the activities related to Event Management Functions. The company is very popular in the entire country (Atril & McLaney, 2008, pp 5-25). There are many other companies as well who are also involved in arranging such events in the city. There are some parts in the current case, which requires a detailed answer. Therefore, all the issues related to the financial performance of Sydney Mardi Gras will be discussed in detail.

Discussion

Part A- The case of “Cash is King”

It is a fact that Cash is the King for any company. The reason is that cash means that the business has the necessary amount for investing in different activities. The main reason is that the business has acquired a significant amount of profits in their business activities. The companies have arranged many events in the past and have earned a significant amount of revenues over the period of time (Friedlob & Scheilfer, 2003, pp 20-30). The arrangements of events require a big amount and the lack of money can certainly prove to be a big loss for the company. The company earning high revenues never really face the problem of cash but those who are in consistent loss definitely faces numerous losses. This turns out to be a negative element for the company because they face problems in performing major functions of the business. Therefore, it is true that cash is king of any business

Part B- Analysis and Commentary on the 2012 Income & Expenditure relative to the prior year

The analysis and commentary on the 2012 Income & Expenditure is a vital issue in terms of the assessment of the business activities related to Sydney Mardi Gras. The company made intensive efforts to increase its sales in the year 2012 around 8% from 2011, as it sales in 2011 was $2,008,299, in 2012 company was able to rose to $2,164,126. This increase in sales indicates a comprehensive increase in the sales of tickets, and that a prolific accomplishment in this fiscal year (Gibson, 2012, pp, 130-145).

On the other hand, the license fees of the company also increased in the year 2012 to about 30 percent from the preceding year, which provided them a major benefit in having maximum revenues. Other positive aspect for the company was that it had an increase in the grants, which are crucial to run the business operations, as the donations for the company increased to about 9 percent from year 2011, to $ 77,880 in 2012. Meanwhile in current fiscal year, the company witnessed a considerable decrease of around 45% in 2012, as it membership fees in 2011 was $137,108, which has decline to $75,847 in 2012. Similarly company faced a comprehensive decline of around 30% in the sales of verities of products, as in 2011 its sales of product ...