2. O VERVIEW OF I NTENSIVE T RAINING M ODULE : Financial Management on Catfish Farms to Improve Efficiencies and Profitability Carole R. Engle Aquaculture/Fisheries Center University of Arkansas at Pine Bluff

3. S HORT & LONG - TERM FINANCIAL DECISIONS : Can it generate enough value over time to pay off the debts (solvency)? Balance Sheets Is it profitable in the long run? Is it profitable in the short run? Can it generate enough cash when needed to pay the bills (liquid)? Engle, UAPB

4. Financial Analysis: Key Statements  Financial Position  Balance Sheet  Profitability  Budgets  Income Statement  Cash Flow/Liquidity  Cash Flow Statement Engle, UAPB

5.  These need to be very specific,  Need to be based on thorough financial analysis of business. What are your business goals for 2011? Engle, UAPB

6. W HAT DOES IT TAKE TO SURVIVE THE LONG RUN ?  Adequate financial strength: -Is my financial position strong enough? -Do I have too much debt to pull out of this? A DEQUATE F INANCIAL S TRENGTH D ETERMINED FROM THE B ALANCE S HEET Engle, UAPB

7. A DEQUATE P ROFITABILITY Enterprise budgets can be used to evaluate new management strategies to see what the effect on profitability might be. Income Statements measure profits & losses in a specific year. Engle, UAPB

8. W HAT DOES IT TAKE TO SURVIVE THE SHORT RUN ? Must be able to sell fish at a price that covers its variable costs, not necessarily all its total costs. Must have adequate liquidity. Enough cash revenue to make payments when due. Must have adequate cash flow. Engle, UAPB

9. Extensive planning. Controlling: implementing actions needed to meet goals. Monthly monitoring of Cash flow statement -  Deviations apparent.  Corrective actions can be taken more quickly. Essential Financial Management Engle, UAPB