Small Farm Business Planning Templates And Instrucitons Page 25
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50Glossary
Capital Expenditures
Expenditures for long-term assets that will
benefit the business over many years.
Draws
Cash removed from the business for personal use
including personal savings.
Net Cash Flow From Operations
Operating Income less Operating Expenditures
– demonstrates the profitability of the operation
before considering debt service, equipment
purchases or any personal financial needs of the
owner.
Non-Operational Sources of Cash
Cash contributed to the business other than
from sales of farm products. Cash contributed
from personal savings, from borrowing, or from
selling farm assets like equipment.
Non-Operational Uses of Cash
Draws, debt service, capital expenditures.
Operating Income
Sales, the income associated with the regular
business of the farm. Not income from unusual
activities such as a one-time sale of an old piece
of equipment.
Operating Expenditures
The direct expenses associated with growing
crops for sale. They are period expenses, i.e.
they are all used up when the crop is harvested
—unlike the expenses of buying a piece of
equipment that will last many years.
Unit 2.0 | 25
Glossary
Small Farm Business Planning
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