CASH FLOW BUDGETING The managers of Oakdale Farm need to find out how much operating capital they will need to borrow this year. Can you finish this cash flow budget and help them out? Calculate how much they will need to borrow each quarter and how much they can repay. Don't worry about interest on the operating loan. Budget for an ending cash balance of $1,000 each quarter. Then estimate the amount of operating loan funds they will have borrowed at the end of each quarter. Oakdale Farm Cash Flow Budget Jan-March 37000 21000 April-June 42000 50000 July-Sept. 44000 Cash Inflows Livestock sales Crop sales Other farm income Nonfarm income New term loans to borrow Total inflows Oct.- Dec. 42000 50000 1000 6000 Whole Year 165000 121000 1000 18000 50000 355000 6000 4000 2000 50000 96000 64000 96000 99000 Jan-March Oct.- Dec. April-June 80000 12000 July-Sept. 2000 15000 Cash Outflows Crop inputs Livestock expenses Land rent Miscellaneous Family living and taxes Capital asset purchases Loan payments to make Total outflows 10000 42000 14000 9000 15000 42000 1000 9000 5000 14000 3000 9000 75000 Whole Year 82000 52000 84000 23000 41000 75000 41000 357000 26000 75000 15000 67000 111000 104000 Net Cash Flow -110001 -15000 -8000 32000 -2000 Annual Operating Loan Jan-March April-June July-Sept. Oct.- Dec. Whole Year Beginning cash balance 5000 -11000 5000 -2000 + Net cash flow -15000 -8000 32000 + Operating loan borrowing - Operating loan payment = Ending cash balance Beginning operating loan balance 25000 25000 Ending operating loan balance