1. Money Grows on Trees, Right?
Cash Flow Statement

2. True or False?
Cash income and expenses tell the entire story of the business.
Profits and cash generated are essentially the same thing.

3. Cash Flow Statement Cash Inflows Operating receipts Capital sales
Crop and livestock sales, government payments, other farm income
Capital sales
Contributed capital

4. Cash Flow Statement Cash Outflows
Operating expenses (feed, fertilizer, etc.)
Capital purchases
Family living and other withdrawals

5. True or False?
A cash flow statement contains the same information as an income statement, except the information is broken down into the actual months transactions occurred.
Capital purchases are for items that have a useful life of more than one year.

6. Developing a Cash Flow Plan
Establishes target levels for income and expenses which can be used in monitoring progress towards goals
Points out potential problems in meeting financial obligations
Indicates when cash is available for new investments

7. Developing a Cash Flow Plan
Sources of information
Records
Debt schedule
Plans for purchases, sales

8. Cash Flow Plan Beginning cash balance Inflows - outflows Cash position
New borrowing
Cash paid for interest on operating loan
Principal payments on operating loans
Ending cash balance

9. Accrued Interest
Use cash flow plan line of credit balance to demonstrate calculation of accrued interest.