Enterprise Budget

Part III$-$Net Farm Income

Instructions: Develop a budget statement for the following business scenario. You will create one spreadsheet$/$workbook$.$ All calculations will be completed via Excel formulas. All formulas should reference cells rather than include individual numbers. This assignment will be graded based on use of Excel formulas versus formatting.

Now that you have calculated the Gross Revenue and Expenses for Christmas Tree Connection, you will need to Calculate Lu Lu Bell's Net Farm Income, commonly referred to as NFI. Your summary for NFI should include the following:

Expected revenue by tree type to equal gross revenue

Total input costs, labor costs, fixed costs to equal total expenses

To calculate NFI

Subtract total expenses from the gross revenue.

Example equation: $=($Gross Revenue$-$Total Expenses$)$ this should result in the net farm income. Note, that when calculating total expenses you will use the input, labor and fixed cost values without the anticipated increase.

This final figure $($NFI$)$ is the amount of income Lu Lu Bell has remaining after paying all of her expenses associated with her Christmas tree production. If the figure is positive, this means that Lu Lu Bell received an annual gain in production and if the figure is negative it means that Lu Lu Bell received an annual loss in production.