CASH FLOW BUDGET OF A FIRM IS GIVEN IN TABLE FOR FOUR QUATERS (YEARS). IF SAME TREND CONTINUES FOR FIVE YEARS FIND OUT WHICH QUATER IS BEST INTERMS OF NET PROFIT BASED ON FUTURE WORTH ANALYSIS. MANAGMENT EXPECTS INTERST RATE OF 2.5% FOR FIVE YEARS. HINT:DRAW CASHFLOW DIAGRAM.

Sample 1. Cash flow budget (by quarter of the year) 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter $5,000 $50,000 25,000 $10,000 $10,000 $30,000 $50,000 $10,000 Cash inflow Beginning cash balance Sale of crop products Sale of livestock products Government payments Total inflow Cash expenditures Seed Fertilizer Feed Processing Marketing Capital purchases Interest Debt payments Total expenditures Quarterly net cash flow Cumulative net cash flow $20,000 10,000 $10,000 $5,000 10,000 5,000 10,000 $25,000 $20,000 $30,000 $5,000 $10,000 $10,000 $20,000 $30,000 $25,000 $5,000 $5,000 $10,000