If you are new to Management and the Arts, or if you are planning to use the book in a course you are teaching next semester, I thought it might be helpful to alert you to the information below regarding errors in chapters 9 and 10.
Chapter 9 Erratum
Figure 9.9, page 358 in the 5th edition and page 295 in the 4th edition, has a formula error in the total column. The total for the line named “Variance” is $40,470. The “Reserves” line directly below is $40,470. There was an error in the original spreadsheet used to create Fig. 9.9. There should be NO number in the “Balance” cell on the bottom right of the Cash Flow Projections. The formula error added the variance and reserves, which created an incorrect “Balance” of $80,940.
The text on page 359 in the 5th edition and page 294 in the 4th edition should read:
“Even though the company is projecting ending the season with a $40,470 reserve (see Reserves row in Fig. 9.9), there will be 4 months of the season where there is a negative cash flow.”
Chapter 10 Erratum
There is a typo on page 393 in the 5th edition and on page 319 in the 4th edition in the Sidebar “Elasticity Change Formula.” In the last line, the formula should read:
% Change = P1 – Po/(P1 + Po)/2. The information in the parenthesis shows Pq when it should be P1.