CASH FLOW BUDGETING -3 This problem involves working out a cash flow budget for 2008. The following information should be all that is needed to complete this problem. The information is in no particular order so carefully check to be sure you have used it all before finishing the problem. Round everything to the nearest whole dollar. Complete a cash flow budget on the form provided. Beginning inventory (January 1, 2008): Wheat, 8,500 bu. to sell in January of 2008 Beef cows, 140 head Prices to use: Beef calves - 70 cents per pound Wheat -$3.40 per bushel Yields: 90% calf crop Cotton -72 cents per pound 32 bu. per acre 575 lbs per acre Additional Information 1. Sells all calves in August at average weight of 450 lbs. (Assume no replacements kept.) 2. Will raise 300 acres of cotton and 450 acres of wheat in 2008. 3. Plans to trade for a new pickup in March, paying $18,500 cash difference. There will be a new intermediate term loan of $14,000 to help pay for it. 4. The new intermediate loan on the pickup will have a semi-annual payment due in August of $2,300 for principal and $750 for interest. 5. Will sell a bull in April for $800 and buy a replacement in May for $2,000. 6. Income and Social Security tax of $15,200 due in March. 7. Family living expenses of $3,000 per month. 8. Personal life insurance premium of $2,000 due in April. 9. Cash on hand January 1, 2008, $12,000. 10. Assume all 2004 cotton sold at harvest in October and all wheat produced in 2008 is stored for sale in 2009. 11. Spouse's non-farm job nets $1,500 per month after all deductions.