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CASH FLOW BUDGETING 2004 This problem involves working out a cash flow budget for 2004. The following information should be all that is needed to complete this problem. The information is in no particular order so carefully check to be sure you have used it all before finishing the problem. Round everything to the nearest whole dollar. Complete a cash flow budget on the form provided. Beginning inventory (January 1, 2004): Wheat, 8,500 bu. to sell in January of 2004 Beef calves, 140 head Prices to use: Beef calves 70 cents per pound Yields: 90% calf crop Wheat - $3.40 per bushel 32 bu. per acre Cotton - 72 cents per pound 575 lbs per acre Additional Information 1. Sells all calves in August at average weight of 450 lbs. (Assume no replacements kept.) 2. Will raise 300 acres of cotton and 450 acres of wheat in 2004. 3. Plans to trade for a new pickup in March, paying $18,500 cash difference. There will be a new intermediate term loan of $14,000 to help pay for it. 3. Plans to trade for a new pickup in March, paying $18,500 cash difference. There will be a new intermediate term loan of $14,000 to help pay for it. 4. The new intermediate loan on the pickup will have a semi-annual payment due in August of $2,300 for principal and $750 for interest. 5. Will sell a bull in April for $800 and buy a replacement in May for $2,000. 6. Income and Social Security tax of $15,200 due in March. 7. Family living expenses of $3,000 per month. 8. Personal life insurance premium of $2,000 due in April. 9. Cash on hand January 1, 2004, $12,000. 10. Assume all 2004 cotton sold at harvest in October and all wheat produced in 2004 is stored for sale in 2005. 11. Spouse's non-farm job nets $1.500 per month after all deductions. Debt Situation as of 1/1/2004 Payment Due in 2004 Current loans Noncurrent loans Balance $25,000 $205,000 Princ. $25,000 $15.500 Interest $2,000 $16.400 Month due February May Total Jan Feb March April May June July Aug Sept Oct Nov Dec Name: 1 Beginning cash balance Operating receipts. 2 Grain and feed Feeder livestock 4 Livestock products Cotton Capital receipts: Breeding livestock Machinery and equipment Nonfarm income: 10 Wages and salary 11 Investments 12 13 Total cash inflow (add lines 1-12) Operating expenses 14 Seed 15 Fertilizer and line 16) Chemicals 17 Other crop expenses 18] Gas, oil, and lubricants 19 Hired labor 20 Machine hire Supplies 21 Feed and grain 22 Feeder livestock 23 Livestock expenses 24 Repairs - machinery 25 Repairs - buildings 26 Cash rent 27 28 Property taxes 29 Insurance 30 Utilities 31 Auto and pickup (fam share) 32 Other fam expenses 33 34 35 Total cash operating expenses | Total Jan Feb March April May June July Aug Sept Oct Nov Dec 36 Cash Expenditures 37 Machinery and equipment 38 Breeding livestock 39 Other expenditures: Family living expenses 40 Income tax and social security 41 Other nonfam expenses 42 Scheduled debt payments 43 Current debt - principal 44 Current debt - interest 45 Noncurrent debt - principal 46 Noncurrent debt interest 47 Total cash out fow (add lines 35-46) 48 Cash available (line 13 - line 47) New borrowing 49 Current 50 Noncurrent 51 Total new borrowing Payments on new current debt 52 Principal 53 Interest 54 Total debt payment (line 52 + line 53) 55 Ending cash balance (lines 48 +51 - 54) Summary of debt outstanding Current Noncurrent Total debt Outstanding CASH FLOW BUDGETING 2004 This problem involves working out a cash flow budget for 2004. The following information should be all that is needed to complete this problem. The information is in no particular order so carefully check to be sure you have used it all before finishing the problem. Round everything to the nearest whole dollar. Complete a cash flow budget on the form provided. Beginning inventory (January 1, 2004): Wheat, 8,500 bu. to sell in January of 2004 Beef calves, 140 head Prices to use: Beef calves 70 cents per pound Yields: 90% calf crop Wheat - $3.40 per bushel 32 bu. per acre Cotton - 72 cents per pound 575 lbs per acre Additional Information 1. Sells all calves in August at average weight of 450 lbs. (Assume no replacements kept.) 2. Will raise 300 acres of cotton and 450 acres of wheat in 2004. 3. Plans to trade for a new pickup in March, paying $18,500 cash difference. There will be a new intermediate term loan of $14,000 to help pay for it. 3. Plans to trade for a new pickup in March, paying $18,500 cash difference. There will be a new intermediate term loan of $14,000 to help pay for it. 4. The new intermediate loan on the pickup will have a semi-annual payment due in August of $2,300 for principal and $750 for interest. 5. Will sell a bull in April for $800 and buy a replacement in May for $2,000. 6. Income and Social Security tax of $15,200 due in March. 7. Family living expenses of $3,000 per month. 8. Personal life insurance premium of $2,000 due in April. 9. Cash on hand January 1, 2004, $12,000. 10. Assume all 2004 cotton sold at harvest in October and all wheat produced in 2004 is stored for sale in 2005. 11. Spouse's non-farm job nets $1.500 per month after all deductions. Debt Situation as of 1/1/2004 Payment Due in 2004 Current loans Noncurrent loans Balance $25,000 $205,000 Princ. $25,000 $15.500 Interest $2,000 $16.400 Month due February May Total Jan Feb March April May June July Aug Sept Oct Nov Dec Name: 1 Beginning cash balance Operating receipts. 2 Grain and feed Feeder livestock 4 Livestock products Cotton Capital receipts: Breeding livestock Machinery and equipment Nonfarm income: 10 Wages and salary 11 Investments 12 13 Total cash inflow (add lines 1-12) Operating expenses 14 Seed 15 Fertilizer and line 16) Chemicals 17 Other crop expenses 18] Gas, oil, and lubricants 19 Hired labor 20 Machine hire Supplies 21 Feed and grain 22 Feeder livestock 23 Livestock expenses 24 Repairs - machinery 25 Repairs - buildings 26 Cash rent 27 28 Property taxes 29 Insurance 30 Utilities 31 Auto and pickup (fam share) 32 Other fam expenses 33 34 35 Total cash operating expenses | Total Jan Feb March April May June July Aug Sept Oct Nov Dec 36 Cash Expenditures 37 Machinery and equipment 38 Breeding livestock 39 Other expenditures: Family living expenses 40 Income tax and social security 41 Other nonfam expenses 42 Scheduled debt payments 43 Current debt - principal 44 Current debt - interest 45 Noncurrent debt - principal 46 Noncurrent debt interest 47 Total cash out fow (add lines 35-46) 48 Cash available (line 13 - line 47) New borrowing 49 Current 50 Noncurrent 51 Total new borrowing Payments on new current debt 52 Principal 53 Interest 54 Total debt payment (line 52 + line 53) 55 Ending cash balance (lines 48 +51 - 54) Summary of debt outstanding Current Noncurrent Total debt Outstanding

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