Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 the year. Cash Inflows Livestock sales Crop sales Other farm income Nonfarm income New term loans to borrow Total inflows Oakdale Farm Cash Flow Budget Jan-March April-June July. Sept. 37000 42000 44000 21000 50000 0 0 0 0 6000 4000 2000 50000 64000 96000 96000 Oct.. Dec. 42000 50000 1000 6000 Whole Year 165000 121000 1000 18000 50000 355000 99000 Cash Outflows Crop inputs Livestock expenses Land rent Miscellaneous Family living and taxes Capital asset purchases Loan payments to make Total outflows Jan-March 0 10000 42000 14000 9000 April-June 80000 12000 0 5000 14000 July-Sept. 2000 15000 0 3000 9000 75000 Oct-Dec 0 15000 42000 1000 9000 Whole Year 82000 52000 84000 23000 41000 75000 41000 398000 26000 101000 111000 104000 15000 82000 Net Cash Flow 37000 - 15000 -8000 17000 43000 Jan-March April-June July. Sept Oct-Dec Whole Year 5000 5000 -37000 - 15000 Annual Operating Loan Beginning cash balance + Net cash flow + Operating loan borrowina Operating loan payment Ending cash balance -8000 17000 -43000 25000 Beginning operating loan balance Ending operating toan balance 25000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started