Small Farm Business Planning Templates And Instrucitons Page 15
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50Lecture Outline 3: Cash Flow Spreadsheets,
Cash Flow Planning, and Proper Categories for
Sources and Uses of Cash
Note to instructor: This section is designed to be presented using a PowerPoint projector
to show the students the design and organization of a cash flow spreadsheet line by line
(see Appendix 4: Sample Cash Flow Spreadsheets (Excel file) for a sample small farm cash
flow plan). Students may use Appendix 5: Cash Flow Template (Excel file) and Appendix
6: Second Year Cash Flow Projections (Excel file) as a template to develop individual cash
flow projections for actual or hypothetical farming operations.These Excel files can be
downloaded free from (go to the link for Teaching Direct Marketing
and Small Farm Viability: Resources for Instructors).
A. Introductory Statements
1. Assumed business ownership structure for sample cash flow:“Sole Proprietorship”
2. There are many other types of legal entities to consider for operating a business. Each has
advantages and disadvantages (not addressed in this lecture). Examples of other business
ownership structures include –
a. Corporation (also called a C-corporation and an S-corporation for the different sections
of the tax code)
b. Partnership
c. Limited Liability Company (LLC)
d. Not for Profit Corporation (501(c)3)
3. Terminology: Some of the terms used in this cash flow exercise would be different if one
were to organize a business under a different business ownership structure (e.g., legal
corporation or legal partnership). Different terms would be used to show how investors
would contribute and draw money to or from the business.
B. Introduction to the Small Farm Cash Flow Spreadsheet (Appendix 4)
1. The cash flow spreadsheet allows you to enter your beginning cash investment and your
assumptions about monthly inflows and outflows of cash. The spreadsheet automatically
calculates the summarized activity every month, and you can see, based on the negative or
positive balance projected for your checking account at the end of the month, if you need
to change your assumptions.
2. The Small Farm Cash Flow Spreadsheet (Appendix 4 and on web) is easy to use
a. Entries are made in the yellow and tan cells (purple cells in online template)
b. The green cells have imbedded formulas
c. The white cells identify what information goes in the row or the column
d. Column C is for January. There is a column for each month of the year.
e. Sheet 2 is for your second year projections
3. How the Small Farm Cash Flow Spreadsheet is organized
a. Monthly organization – because this is the frequency of significant cash flow
fluctuations
Unit 2.0 | 15
Lecture 3 Outline
Small Farm Business Planning
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business