• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Cash Flow Analysis Worksheets

Extracts from this document...

Introduction

Cash Flow Analysis Worksheets This article describes the cash budget and analysis worksheets available for downloading at the Department of Agricultural and Resource Economics web site http://ag.arizona.edu/arec/ext/budgets/counties.html under the financial template section. The worksheets are part of the cashcost file in either the Excel or Quattro Pro format. These spreadsheet templates can be used to generate budget information customized to your operation on an operating or cash cost basis only (fixed costs are not included). A cash flow analysis is an important step in taking control of any agricultural business. The allocation of income to cover expected costs throughout the year will help ensure that all credit obligations will be met. It is equally important not only to track current cash flows, but also to project at the start of the production year all expected income and expenditures. Once expected income and expenditures are recorded, comparisons can be made between projected and actual cash flows to help point out any discrepancies. Two of the main worksheets found in the cashcost file are the cash budget worksheet and the analysis worksheet. Both of the worksheets and how to use them are described in the following paragraphs. The cash budget worksheet allows the user to summarize all cash inflows (receipts) and outflows (expenditures) for up to four individual crops grown on the farm during the yearly business cycle. ...read more.

Middle

The analysis worksheet is linked to the cash budget worksheet and allows for percentage adjustments to be made for each crop and each income and expenditure category. A year-end comparison between the newly adjusted cash budget and the actual cash budget is presented at the end of the analysis worksheet. Components of the Cash Budget & Analysis Worksheets Both the cash budget worksheet and the analysis worksheet are broken up into several main areas denoted by type of receipts and expenditures. Under some of the main expenditure areas are sub categories further defining each of the expenditures. Each of the main areas are presented below with descriptions of what is contained within the areas and where appropriate, examples of data entries are presented. Data should only be entered in the areas shaded in green on the actual worksheets. All other areas are calculated fields and will automatically fill in when the information is provided in the green shaded areas. Part 1: The Cash Budget Worksheet Acreage and Revenues 1 - Total Acres This area is for recording the total number of acres planted for each crop. For example, 400 acres of Alfalfa Hay, 80 acres of Spring Cantaloupe, 120 acres of Durum Wheat, and 100 acres of Upland Cotton. 2 - Yield (per acre) Input the yield per acre for each crop listed (Figure 1, part 1). ...read more.

Conclusion

Percent of Operating Expenses Column This area calculates the percent of the total operating expenses for each category for each crop. This calculation will help define the areas where the majority of the cash expenses occur (Figure 3, part 1). Adjustment Column This column is used for making adjustments to individual categories for each crop listed. Adjustments can be made on a percentage increase or decrease (Figure 3, part 2). The adjustment column is the only area where entries are allowed to be made. All other information is either carried forward from the cash budget worksheet or is automatically calculated. Figure 3 Total Farm & Adjusted Total Farm At the end of the worksheet, the total expenditure per category is adjacent to the adjusted totals for comparisons (Figure 4). Figure 4 Final Thoughts on Cash Flow vs Accrual Accounting While cash flow analysis is an important tool in managing today's ranches, care should be used when interpreting cash flow analysis. Remember that a cash flow only looks at cash transactions when they are either paid or received, not when they are actually incurred (accrual accounting). Therefore, cash flow is only a measure of cash profits. To get at true profits, accrual accounting is needed to account for not only non-cash items but also changes in inventories, accounts receivable, and accounts payable. It is a well-known fact that a business can be going broke and still generate a positive cash flow for several years. BUSM 3071 ACCOUTING AND FINANCE 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Accounting section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Accounting essays

  1. An Analysis Of harmonization issues of accounting standards

    shows, the number of the companies taken as sample with strong differenced in the degree, which was dropping from 14 in 2002 to 5 in 2007, particularly from 2005 as it shows in chart 4-3 below. It shows that with more and more of convergence between IFRS and CAS, the

  2. Financial statement analysis

    The 5-point differential in sales change between 2001 and 2002 stems from company store and brand expansion. 2002-2003 sales were distorted by the one-off inclusion of the 53rd week and an additional $7.5 million in top line sales. The company's marginal performance in 2003-2004 was a by-product of competitor discounting,

  1. Two-page report if an aggressive takeover should occur on Fortescue Metals Group Ltd (FMG)

    Demand for domestic steel products is also expected to increase over this period, highlighting another important target market in the mining (iron ore) and metallurgical sectors. The iron ore mining segment, as well as the steel-making industry, will be searching for state-of-the art technologies, and will encompass not only the

  2. Cash budget

    Month Sales February March April May June January 1800000 1080000 720000 February 2000000 1200000 800000 March 1800000 1080000 720000 April 2200000 1320000 880000 May 2500000 1500000 June 2800000 Total 1880000 2040000 2380000 2. Cost of raw materials. Cost of it equals to 50% of sales.60% of the raw materials

  1. GAAP VS IFRS

    This will give many countries that currently do not use IASB standards a chance to become compliant with the current standards. Table of Contents INTRODUCTION 1 BUSINESS COMBINATIONS 1 Goodwill: FASB Issues SFAS 142 2 The Test for Impairment of Goodwill - U.S.

  2. aadishwar_management accouting

    Looking on to the supply side, garment manufacturing is quite prevalent in Indore. Many firms jointly produces traditional, ethnic and western outfits. Aadishwar Apparel is located in the heart of the city and enjoys operating advantage in terms of its distribution network and channel partners.

  1. Accounting Final Project - analysis of three companies in the UK telecommunication sector.

    Failure of the company to defend itself from the claims could lead to the imposition of substantial penalties. Opportunities The company, being a provider of communications solutions and services, could augment its operational revenue with rapid growth in the global telecommunications services market.

  2. An analysis of Balanced Scorecard

    On the other hand, it is uncertain that lower level employees would understand the meaning of strategy in the same way the higher levels express to them.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work