Using Cash Flow
Budgets to Improve
Cash Flow and
Liquidity in the Catfish
Business
Carole R. Engle
Aquaculture/Fisheries Center
U. of Arkansas at Pine Bluff
Monthly Cash Flow Budget
Item
Beginning Cash
Receipts from catfish sold
Cash Inflow
Operating Cash Expenses
Fingerlings
Feed
Gas, Fuel, and Oil
Chemicals
Labor
Harvesting & Hauling
Machine Hire
Office Expenses
Rent
Repairs and Maintenance
Utilities
Other Operating Costs
Total Operating Expenses
Fixed Cash Expenses
Taxes and Insurance
Total Fixed cash Expenses
Living Expenses
Other Expenses
Scheduled Debt Paym ents
Real Estate Principal
Interest (10% APR)
Equipment Principal
Interest (10% APR)
Operating Principal
Interest (10% APR)
Total Cash Outflow
Cash Available
New Borrow ing
Cash Balance
Engle, UAPB
Jan
15,849.00
Mar
42,835.71
15,849.00
Feb
39.79
60,000.00
60,039.79
May
46,466.02
Jun
24,256.90
42,835.71
Apr
12,065.73
60,000.00
72,065.73
3,830.00
380.00
1,000.00
717.39
10.00
360.00
1,310.00
190.00
360.00
8,157.39
Aug
34,568.03
24,256.90
Jul
1,145.96
60,000.00
61,145.96
Oct
36,263.66
34,568.03
Sep
5,806.26
60,000.00
65,806.26
46,466.02
4,790.00
470.00
1,000.00
722.79
10.00
360.00
1,310.00
390.00
360.00
9,412.79
12,415.00
5,750.00
570.00
470.00
1,730.00
806.91
10.00
360.00
1,310.00
970.00
360.00
24,751.91
6,710.00
660.00
1,730.00
692.32
10.00
360.00
1,310.00
1,360.00
360.00
13,192.32
7,670.00
750.00
1,730.00
687.24
10.00
360.00
1,310.00
1,560.00
360.00
14,437.24
8,620.00
850.00
470.00
1,950.00
681.21
150.00
10.00
360.00
1,310.00
2,340.00
360.00
17,101.21
10,540.00
1,040.00
1,950.00
695.49
150.00
10.00
360.00
1,310.00
2,530.00
360.00
18,945.49
11,500.00
1,130.00
620.00
1,950.00
754.85
290.00
10.00
360.00
1,310.00
2,730.00
360.00
21,014.85
14,370.00
1,410.00
1,950.00
701.20
150.00
10.00
360.00
1,310.00
2,920.00
360.00
23,541.20
9,580.00
940.00
1,730.00
729.46
10.00
360.00
1,310.00
2,340.00
360.00
17,359.46
3,000.00
-
3,000.00
-
3,000.00
-
4,760.00
4,760.00
3,000.00
-
3,000.00
-
3,000.00
-
3,000.00
-
3,000.00
-
3,000.00
-
3,000.00
-
265.00
2,368.75
2,018.07
15,809.21
39.79
39.79
665.00
2,108.23
2,018.07
17,204.08
42,835.71
42,835.71
1,000.00
2,018.07
30,769.98
12,065.73
12,065.73
265.00
2,364.33
2,018.07
25,599.72
46,466.02
46,466.02
665.00
2,097.14
2,009.73
22,209.11
24,256.90
24,256.90
1,000.00
2,009.73
23,110.94
1,145.96
1,145.96
265.00
2,357.71
2,009.73
26,577.93
34,568.03
34,568.03
665.00
2,080.52
2,001.40
28,761.77
5,806.26
5,806.26
1,000.00
2,001.40
29,542.60
36,263.66
36,263.66
265.00
2,351.08
2,001.40
24,976.94
11,286.72
11,286.72
36,263.66
Cash Flow Scenarios
Farm A
Farm B
Sept.
$60,000
Feb.
$60,000
Oct.
$90,000
April
$60,000
Nov.
$60,000
July
$60,000
Dec.
$60,000
Sept.
$60,000
Nov.
$30,000
Engle, UAPB
Liquidity Measures for Two Scenarios
Indicator
A
B
Cash Flow Coverage (0.26)
0.17
Debt-Servicing
0.17
0.21
Cash avail./cash
(0.02)
inflow
Cash avail./op.
(0.03)
expenses
Cash avail./liabilities (0.01)
Engle, UAPB
0.01
0.02
0.01
Adequate Cash Flow:
Determined from Cash Flow Budget
• Cash flow budget must show realistic
projections of cash revenue for the year,
by month.
• Any month with a negative cash flow is a
cash flow problem that needs to be
resolved.
• Must identify a production/financial plan
that generates the revenue when needed.
• If there is a problem, may need to sell
off some stock, reduce densities,
allow for better growth = better cash
flow.
Engle, UAPB
• Decisions on stocking and
feeding rates should be
based on meeting short-term
financial obligations.
Engle, UAPB
What should I look at this
winter?
• Do detailed cash flow budget and know
when you need to make payments.
• Using Fishy, project different harvest
dates at different stocking & feeding rates.
• Choose feeding and stocking rates that
allow farmer to make necessary
payments.
Engle, UAPB
Larger fish at stocking reach harvest in
shorter time period.
May
Engle, UAPB
June
July
August Sept.
Oct.
Fish grow faster at lower
densities.
Engle, UAPB
Cash Flow Simulator:
Files available in
training materials on
web site.
Engle, UAPB