Name:
Cash Flows Student
Notes
Directions: Follow along and complete the notes
below.
are a record of the money that goes
business and the money that flows
of the business.
a
There are two types of Cash Flow Statements:
There are Cash
. The Cash Flow Summaries look back over
the year at the actual money
and
.
There are also Cash Flow
amount transactions that will occur in the
way for a business to
. These
the
. Projections are a
for the year ahead.
Cash Flow Projections can be compared to the Cash Flow Summary at the end
of the
.
Seeing when cash comes into the operation and predicting when major
expenses will be
can be helpful in making sure a business
owner has enough
to cover large, upcoming
.
It can also allow the farmer to be
might be helpful in allowing the farmer secure an
loan.
Cash Flows should be
evaluated.
with the banker and
and continually
Fluctuations in
and other unforeseen
can
result in major differences between cash flow projections and actual cash flow
summaries.
Cash Flow Summaries should
be the only analysis
completed to asses business health. Other methods should be included in
evaluation.
Let’s Practice:
1. Principal Payment on Land Loan
2. Selling 20 hd. of Steer Calves
3. Selling Old Tractor
4. Interest Payment on Land Loan
5. Purchase Vaccine
6. Fuel
7. Fertilizer
8. Selling 50 tons of Hay
Ending Balance:
January
Beginning Balance $25,000
Fuel Bill $500
Pickup Payment $400
February
Sold Old Tractor to Neighbor for $4,500
Paid to have the vet fertility test the bulls $450
Pickup Payment $400
March
Took cow to town that lost her calf $950
Pickup Payment $400
Bought Bull to Replace the one that failed fertility
test $2,500
April
Purchased Vaccine $1200
Meal for Spring Branding $800
Pickup Payment $400
May
Pre-paid for fuel $500
Pickup Payment $400
June
Pickup Payment $400
July
Pickup Payment $400
Income from Hay Sale $5,000
August
Pickup Payment $400
Sold 6 Dry Cows $7,500
September
Pickup Payment $400
October
Pickup Payment $400
Sold Calves $150,000
November
Pickup Payment $400
December
Pickup Payment $400
Land Payment Due $50,000
Cow Loan Payment Due $3,000
Land Loan Interest Due $3,000
Cow Loan Interest Due $750
Cash Flow Summary
Year Ending
Date: