1 Wonderland plc, which is based in Robynland, owns Cinola Island which is located off the
Cinola Island, Wonderland plc operates a circus and zoological gardens (zoo) both of which are open for 365 days
per annum. The circus, which is widely regarded as the best in the world, can accommodate a maximum of 14,000
visitors per day. The zoological gardens, which opened on 1 December 1999, can accommodate a maximum of
20,000 visitors per day. Visitors travel to and from Cinola Island using petrol-driven ferries owned by Wonderland plc.
There is no other mode of transport to and from Cinola Island.
The following information is available in respect of the year ended 30 November 2006 and the year ending
30 November 2007.
(1) The zoo and circus were open on each day of the year. The circus performed once per day and was always
operated at maximum capacity.
(2) Three types of ticket were sold as follows:
Note: The petrol-driven ferries were fully depreciated as at 1 December 2006.
(7) Wonderland plc received an annual fee of £10 million from an International media group under a fixed-term
contract of three years’ duration. The contract commenced on 1 December 2005 and relates to the rights to
televise programmes which were filmed in the zoo and therefore the fee should be regarded as relating to the
zoo.
(8) Admission fees to the zoo and circus will be increased by 5% with effect from 1 December 2006. Transport fees
will remain unchanged.
(9) It is anticipated that all operating costs will increase by 4% per annum due to the impact of inflation during the
year ending 30 November 2007.
(10) The management of Wonderland plc expect that the number of visitors, visitor mix and ticket mix will remain
unchanged during the year ending 30 November 2007.
(11) Ignore taxation.
Required:
(a) Prepare the budgeted profit and loss account for Wonderland plc for the year ending 30 November 2007.
(9 marks)