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$1.$ Use the cashflow budget for the Adams County farm found in module $8$ to answer the following questions.

a$.$ Record the following projected crop and livestock sales in the cash flow spreadsheet:

$$ Wheat:$$ $$88,000$ in March, $$133,000$ in September, and $$155,000$ in November

$$ Potatoes: $$450,000$ in October

$$ Sweet Corn: $$202,500$ in September

$$ Alfalfa: $$45,000$ in June, $$58,000$ in July, and $$65,000$ in August$$

$$ Livestock Product Sales $($calves$)$: $$62,000$ in October

$$ Breeding Livestock Sales $($cows$)$: $$6,500$ in May and $$2,000$ in July

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Save the spreadsheet and utilize the completed cashflow budget to answer the remainder of the questions below.$$ Check numbers to make certain you are starting from the correct cashflow budget are total inflows $($$$1,339,100)$ and ending cash balance $($$$92,192).$Print the spreadsheet.$$

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b$.$ Assess the liquidity of the farm during $2021.$ Assume the Rick and Rita have a line of credit that allows them to borrow up to $$500,000$ on their operating loan.

Note: Use at least three of the liquidity indicators discussed in class.$$

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c$.$ Use the cashflow budget to assess the impact of holding the calves into $2022,$ resulting in the elimination of the inflow in October, adding $$2,000$ to feed purchases in each of the remaining three months $($October$,$ November, and December$)$ and adding $$500$ to livestock expenses in each of the three months.$$ Print the spreadsheet.$$ How does this change affect the liquidity of the plan?$$ How was ending cash balance affected?$$ Remember to reset your spreadsheet back to the original values before making these changes.$$

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d$.$ Change the cashflow budget from a consolidated cashflow to a business cashflow by eliminating the wages and salaries in line $22,$ investment income in line $23,$ and family living expenses in line $52.$ Is liquidity improved or hampered by the change?$$ What is the impact on interest paid on the operating loan and the maximum amount borrowed at any one time during the year? Remember to reset your spreadsheet back to the original values before making these changes.

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