Cash Flow Exercise #1

Cash Flow Exercise #1:

Please examine the income statement in Table 22. Evaluate whether the cash flow budget indicates any areas of concern. If so, what would your recommendation be? Please write your answers in Table 23.

Table 22. Monthly Cash Flow Budget for a 256-acre Catfish Farm with Financing of 30% of all Capital.

Item / Jan. / Feb. / March / April / May / June / July / August / Sept. / Oct. / Nov. / Dec. / Total
Beginning cash / 173650 / 183325 / 157082 / 129716 / 202431 / 232022 / 226395 / 192812 / 170806 / 148185 / 208002 / 126094
Pounds of catfish sold, lb / 46080 / 46080 / 46080 / 207360 / 115200 / 115200 / 69120 / 115200 / 115200 / 195840 / 80640 / 0 / 1152000
Receipts from catfish sold, $ / 32256 / 32256 / 32256 / 145152 / 80640 / 80640 / 48384 / 80640 / 80640 / 137088 / 56448 / 0 / 806400
Total Cash Inflow / 205906 / 215581 / 189338 / 274868 / 283071 / 312662 / 274779 / 273452 / 251446 / 285273 / 264450 / 126094 / 806400
Operating Cash Expenses
Feed / 2783 / 5565 / 5565 / 19479 / 13913 / 44522 / 44522 / 55653 / 55653 / 16696 / 8348 / 5565 / 278264
Fingerlings / 0 / 36416 / 36416 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 72832
Labor / 0
Year-round, full-time / 3245 / 3245 / 3245 / 3245 / 3245 / 3245 / 3650 / 3245 / 3650 / 3245 / 3650 / 3650 / 40560
Seasonal, full-time / 0 / 0 / 0 / 0 / 1521 / 2535 / 2535 / 2535 / 1014 / 0 / 0 / 0 / 10140
Plankton control / 0 / 0 / 0 / 0 / 922 / 0 / 922 / 0 / 1843 / 0 / 0 / 0 / 3687
Gas, diesel fuel, and oil / 1137 / 568 / 568 / 568 / 947 / 1516 / 2463 / 2463 / 3031 / 3031 / 1326 / 1326 / 18944
Electricity / 1137 / 1137 / 1705 / 2273 / 2842 / 5683 / 8525 / 9661 / 9661 / 9661 / 2842 / 1705 / 56832
Repairs and maintenance / 2980 / 497 / 993 / 993 / 1242 / 2483 / 3228 / 3228 / 2483 / 1242 / 1242 / 4221 / 24832
Bird depredation / 240 / 240 / 240 / 160 / 80 / 0 / 0 / 0 / 0 / 160 / 240 / 240 / 1600
Seining & hauling / 2304 / 2304 / 2304 / 10368 / 5760 / 5760 / 3456 / 5760 / 5760 / 9792 / 4032 / 0 / 57600
Telephone / 215 / 215 / 161 / 269 / 269 / 215 / 215 / 215 / 215 / 215 / 215 / 269 / 2688
Office supplies / 225 / 28 / 141 / 56 / 563 / 563 / 282 / 141 / 141 / 113 / 141 / 422 / 2816
Farm insurance / 518 / 518 / 518 / 518 / 518 / 518 / 583 / 518 / 583 / 518 / 583 / 583 / 6476
Legal/accounting / 156 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 156 / 1562
Total Operating Expenses / 14940 / 50858 / 51981 / 38054 / 31947 / 67165 / 70506 / 83544 / 84159 / 44798 / 22744 / 18137 / 578833
Debt Servicing
Real estate
Interest / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 44835 / 44835
Principal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 20544 / 20544
Subtotal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 65379 / 65379
Equipment
Interest / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 24726 / 0 / 24726
Principal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 77514 / 0 / 77514
Subtotal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 102240 / 0 / 102240
Operating
Interest / 695 / 695 / 695 / 3126 / 1737 / 1737 / 1042 / 1737 / 1737 / 2952 / 1216 / 0 / 17369
Principal / 6946 / 6946 / 6946 / 31257 / 17365 / 17365 / 10419 / 17365 / 17365 / 29521 / 12156 / 0 / 173651
Subtotal / 7641 / 7641 / 7641 / 34383 / 19102 / 19102 / 11461 / 19102 / 19102 / 32473 / 13372 / 0 / 191020
Total Debt Servicing / 7641 / 7641 / 7641 / 34383 / 19102 / 19102 / 11461 / 19102 / 19102 / 32473 / 115612 / 65379 / 358639
Total Cash Outflow / 22581 / 58499 / 59622 / 72437 / 51049 / 86267 / 81967 / 102646 / 103261 / 77271 / 138356 / 83516
Cash available / 183325 / 157082 / 129716 / 202431 / 232022 / 226395 / 192812 / 170806 / 148185 / 208002 / 126094 / 42578
New Borrowing / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0
Ending Cash Balance / 183325 / 157082 / 129716 / 202431 / 232022 / 226395 / 192812 / 170806 / 148185 / 208002 / 126094 / 42578
Summary of debt outstanding
Real estate
Equipment
Operating

Table 23. Please fill out the following based on your assessment of the income statement in Table 22.

Question / Answer
1. Does the income statement in Table 22 show any areas of concern?
2. If so, what are these?
3. What would your recommendations be for this farm?

Cash Flow Exercise #2:

Please examine the income statement in Table 24. Evaluate whether the cash flow budget indicates any areas of concern. If so, what would your recommendation be? Please write your answers in Table 25.

Table 24. Monthly Cash Flow Budget for a 256-acre Catfish Farm with Financing of 30% of all Capital and Restricted Sales Due

To Off-flavor.

Item / Jan. / Feb. / March / April / May / June / July / August / Sept. / Oct. / Nov. / Dec. / Total
Beginning cash / 173650 / 168349 / 127130 / 84788 / 90111 / 82262 / 39195 / 10000 / 10000 / 10000 / 6169 / 10000
Pounds of catfish sold, lb / 23040 / 23040 / 23040 / 103680 / 57600 / 57600 / 34560 / 57600 / 57600 / 97920 / 40320 / 0 / 576000
Receipts from catfish sold, $ / 16128 / 16128 / 16128 / 72576 / 40320 / 40320 / 24192 / 40320 / 40320 / 68544 / 28224 / 0 / 403200
Total Cash Inflow / 189778 / 184477 / 143258 / 157364 / 130431 / 122582 / 63387 / 50320 / 50320 / 78544 / 34393 / 10000 / 1214854
Operating Cash Expenses
Feed / 2783 / 5565 / 5565 / 19479 / 13913 / 44522 / 44522 / 55653 / 55653 / 16696 / 8348 / 5565 / 278264
Fingerlings / 0 / 36416 / 36416 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 72832
Labor / 0
Year-round, full-time / 3245 / 3245 / 3245 / 3245 / 3245 / 3245 / 3650 / 3245 / 3650 / 3245 / 3650 / 3650 / 40560
Seasonal, full-time / 0 / 0 / 0 / 0 / 1521 / 2535 / 2535 / 2535 / 1014 / 0 / 0 / 0 / 10140
Plankton control / 0 / 0 / 0 / 0 / 922 / 0 / 922 / 0 / 1843 / 0 / 0 / 0 / 3687
Gas, diesel fuel, and oil / 1137 / 568 / 568 / 568 / 947 / 1516 / 2463 / 2463 / 3031 / 3031 / 1326 / 1326 / 18944
Electricity / 1137 / 1137 / 1705 / 2273 / 2842 / 5683 / 8525 / 9661 / 9661 / 9661 / 2842 / 1705 / 56832
Repairs and maintenance / 2980 / 497 / 993 / 993 / 1242 / 2483 / 3228 / 3228 / 2483 / 1242 / 1242 / 4221 / 24832
Bird depredation / 240 / 240 / 240 / 160 / 80 / 0 / 0 / 0 / 0 / 160 / 240 / 240 / 1600
Seining & hauling / 1152 / 1152 / 1152 / 5184 / 2880 / 2880 / 1728 / 2880 / 2880 / 4896 / 2016 / 0 / 28800
Telephone / 215 / 215 / 161 / 269 / 269 / 215 / 215 / 215 / 215 / 215 / 215 / 269 / 2688
Office supplies / 225 / 28 / 141 / 56 / 563 / 563 / 282 / 141 / 141 / 113 / 141 / 422 / 2816
Farm insurance / 518 / 518 / 518 / 518 / 518 / 518 / 583 / 518 / 583 / 518 / 583 / 583 / 6476
Legal/accounting / 156 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 156 / 1562
Total Operating Expenses / 13788 / 49706 / 50829 / 32870 / 29067 / 64285 / 68778 / 80664 / 81279 / 39902 / 20728 / 18137 / 550033
Debt Servicing
Real estate
Interest / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 44835 / 44835
Principal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 20544 / 20544
Subtotal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 65379 / 65379
Equipment
Interest / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 24726 / 0 / 24726
Principal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 77514 / 0 / 77514
Subtotal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 102240 / 0 / 102240
Operating
Interest / 695 / 695 / 695 / 3126 / 1737 / 1737 / 1042 / 1737 / 1737 / 2952 / 1216 / 0 / 17369
Principal / 6946 / 6946 / 6946 / 31257 / 17365 / 17365 / 10419 / 17365 / 17365 / 29521 / 12156 / 0 / 173651
Subtotal / 7641 / 7641 / 7641 / 34383 / 19102 / 19102 / 11461 / 19102 / 19102 / 32473 / 13372 / 0 / 191020
Total Debt Servicing / 7641 / 7641 / 7641 / 34383 / 19102 / 19102 / 11461 / 19102 / 19102 / 32473 / 115612 / 65379 / 358639
Total Cash Outflow / 21429 / 57347 / 58470 / 67253 / 48169 / 83387 / 80239 / 99766 / 100381 / 72375 / 136340 / 83516
Cash available / 168349 / 127130 / 84788 / 90111 / 82262 / 39195 / -16852 / -49446 / -50061 / 6169 / -101947 / -73516
New Borrowing / 0 / 0 / 0 / 0 / 0 / 0 / 26852 / 59446 / 60061 / 0 / 111947 / 83516
Ending Cash Balance / 168349 / 127130 / 84788 / 90111 / 82262 / 39195 / 10000 / 10000 / 10000 / 6169 / 10000 / 10000
Summary of debt outstanding
Real estate
Equipment
Operating / 166705 / 159759 / 152813 / 121556 / 104191 / 86826 / 103259 / 145340 / 188036 / 158515 / 258306 / 341822

Table 25. Please fill out the following based on your assessment of the income statement in Table 24.

Question / Answer
1. Does the income statement in Table 24 show any areas of concern?
2. If so, what are these?
3. What would your recommendations be for this farm?

Cash Flow Exercise #3:

Please examine the income statement in Table 26. Evaluate whether the cash flow budget indicates any areas of concern. If so, what would your recommendation be? Please write your answers in Table 27.

Table 26. Monthly Cash Flow Budget for a 256-acre Catfish Farm with Financing of 30% of all Capital, after Re-structuring.

Item / Jan. / Feb. / March / April / May / June / July / August / Sept. / Oct. / Nov. / Dec. / Total
Beginning cash / 15429 / 10694 / 10000 / 10000 / 10812 / 10381 / 10000 / 10000 / 10000 / 10000 / 10630 / 10000
Pounds of catfish sold, lb / 23040 / 23040 / 23040 / 103680 / 57600 / 57600 / 34560 / 57600 / 57600 / 97920 / 40320 / 0 / 576000
Receipts from catfish sold, $ / 16128 / 16128 / 16128 / 72576 / 40320 / 40320 / 24192 / 40320 / 40320 / 68544 / 28224 / 0 / 403200
Total Cash Inflow / 31557 / 26822 / 26128 / 82576 / 51132 / 50701 / 34192 / 50320 / 50320 / 78544 / 38854 / 10000 / 531147
Operating Cash Expenses
Feed / 2783 / 5565 / 5565 / 19479 / 13913 / 44522 / 44522 / 55653 / 55653 / 16696 / 8348 / 5565 / 278264
Fingerlings / 0 / 36416 / 36416 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 72832
Labor / 0
Year-round, full-time / 3245 / 3245 / 3245 / 3245 / 3245 / 3245 / 3650 / 3245 / 3650 / 3245 / 3650 / 3650 / 40560
Seasonal, full-time / 0 / 0 / 0 / 0 / 1521 / 2535 / 2535 / 2535 / 1014 / 0 / 0 / 0 / 10140
Plankton control / 0 / 0 / 0 / 0 / 922 / 0 / 922 / 0 / 1843 / 0 / 0 / 0 / 3687
Gas, diesel fuel, and oil / 1137 / 568 / 568 / 568 / 947 / 1516 / 2463 / 2463 / 3031 / 3031 / 1326 / 1326 / 18944
Electricity / 1137 / 1137 / 1705 / 2273 / 2842 / 5683 / 8525 / 9661 / 9661 / 9661 / 2842 / 1705 / 56832
Repairs and maintenance / 2980 / 497 / 993 / 993 / 1242 / 2483 / 3228 / 3228 / 2483 / 1242 / 1242 / 4221 / 24832
Bird depredation / 240 / 240 / 240 / 160 / 80 / 0 / 0 / 0 / 0 / 160 / 240 / 240 / 1600
Seining & hauling / 1152 / 1152 / 1152 / 5184 / 2880 / 2880 / 1728 / 2880 / 2880 / 4896 / 2016 / 0 / 28800
Telephone / 215 / 215 / 161 / 269 / 269 / 215 / 215 / 215 / 215 / 215 / 215 / 269 / 2688
Office supplies / 225 / 28 / 141 / 56 / 563 / 563 / 282 / 141 / 141 / 113 / 141 / 422 / 2816
Farm insurance / 518 / 518 / 518 / 518 / 518 / 518 / 583 / 518 / 583 / 518 / 583 / 583 / 6476
Legal/accounting / 156 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 125 / 156 / 1562
Total Operating Expenses / 13788 / 49706 / 50829 / 32870 / 29067 / 64285 / 68778 / 80664 / 81279 / 39902 / 20728 / 18137 / 550033
Debt Servicing
Real estate
Interest / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 44835 / 44835
Principal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 20544 / 20544
Subtotal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 65379 / 65379
Equipment
Interest / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 24726 / 0 / 24726
Principal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 77514 / 0 / 77514
Subtotal / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 102240 / 0 / 102240
Operating
Interest / 129 / 71 / 345 / 637 / 319 / 224 / 422 / 797 / 1140 / 1491 / 1270 / 2065 / 8910
Principal / 6946 / 6946 / 6946 / 38257 / 17365 / 17365 / 10419 / 17365 / 17365 / 29521 / 12156 / 0 / 180651
Subtotal / 7075 / 7017 / 7291 / 38894 / 17684 / 17589 / 10841 / 18162 / 18505 / 31012 / 13426 / 2065 / 189561
Total Debt Servicing / 7075 / 7017 / 7291 / 38894 / 17684 / 17589 / 10841 / 18162 / 18505 / 31012 / 115666 / 67444 / 357180
Total Cash Outflow / 20863 / 56723 / 58120 / 71764 / 46751 / 81874 / 79619 / 98826 / 99784 / 70914 / 136394 / 85581
Cash available / 10694 / -29900 / -31993 / 10812 / 4381 / -31172 / -45428 / -48506 / -49464 / 7630 / -97540 / -75581
New Borrowing / 0 / 39900 / 41993 / 0 / 6000 / 41172 / 55428 / 58506 / 59464 / 3000 / 107540 / 85581
Ending Cash Balance / 10694 / 10000 / 10000 / 10812 / 10382 / 10000 / 10000 / 10000 / 10000 / 10630 / 10000 / 10000
Summary of debt outstanding
Real estate
Equipment
Operating / 8483 / 41437 / 76484 / 38227 / 26862 / 50669 / 95678 / 136819 / 178918 / 152397 / 247781 / 333362

Table 27. Please fill out the following based on your assessment of the income statement in Table 26.

Question / Answer
1. Does the income statement in Table 26 show any areas of concern?
2. If so, what are these?
3. What would your recommendations be for this farm?

28