This assignment is designed to help you gain knowledge about creating and using a cash flow statement for your livestock enterprise.
Assignment: Draft a 12-month cash flow chart for your sheep/lamb or goat operation.
Notes: The cash flow statement is an important management tool that projects inflows and outflows of cash, which will enable a producer to make good management, borrowing, and investment decisions.
How do I get started in assembling a cash flow statement for my lamb (goat) enterprise?
One of the best ways to get started is for you to use your most recent sales and expense figures as benchmarks and work off of them. If you have kept good records, you probably could reconstruct an actual monthly cash flow statement for the past year and then use this information to help project the next twelve months. In projecting future monthly cash inflows and outflows, you should document key decisions/factors (i.e., purchase of equipment, new buyer, etc.) likely to affect monthly net cash flow.
Remember that these figures are projections, which may or may not turn out to be accurate. After completing the cash flow statement, review your projections after each month and fill in the actual sales and expenses. This will help you better understand the actual cash flow of the business and enable you to adjust future projections based on what you have learned.
Helpful resources for this assignment:
If you need assistance or have questions about this assignment, please feel free to contact Dr. Richard Brzozowski at firstname.lastname@example.org or 207.951.7155.
Image Description: Print Friendly