Table 1 Income of Case Study No 1 farm in 2018 Yield in units per acre Unit for
ID: 2546070 • Letter: T
Question
Table 1 Income of Case Study No 1 farm in 2018 Yield in units per acre Unit for yield per acre Price in S per unit Receipt date Wheat Sunflowers 2,500 Tomatoes 50 tons pounds tons 200 00 $1.25 $80.00 30 Sep 30, 2018 Dec 31, 2018 Acres I wheat lo5 SunFlowers 9 Tomatoes 0 Table 2 Expenses of Case Study No. 1 farm in 2018 1st quarter 2nd quarter 3rd quarter 4th quarter 2018 (S) 2018 (S) 2018 (S) 2018 ($) wheat variable costs (per acre) $35 sunflower variable costs (per acre) $100 tomato variable costs (per acre) $150 300 500 750 100 300 1000 oce expenses telephone rent insurance property tax $5,000 $5,000 $5,000 $5,000 $500 $61,250 - $7,500 $500 $61,250 $0 $500 $500 $7,000 $7,000 Study Questions for Lectures 11 &12 ARE 140 Farm Management Winter 2018 Due Thursday, March 1 Key Corrected March 11 Cash flow for Case Study No. 1.-For questions 1 through 10, you are the farmer for the Case Study No. 1 farm, growing wheat, processing tomatoes, and sunflowers for seed. You begin 2018 with a $350,000 bank balance. To answer questions 1 to 10, first construct a cash flow budget out of the information in tables 1 and 2, and the following loan information and repayment schedule: The 2018 starting line of credit su cient cashflow to pay o $100,000 of principle in the third quarter and $150,000 in the fourth bank balances for each quarter. palacigeleis $500,000. You will pay 5 percent simple interest per annum only on the loan until you have Ronsemplicity, assume all inflow and outflow figures are as of the end of the period, except for the beginning Your goal is to reduce the operating loan balance by one half and end up the year with enough cash in the bank to begin 2019 with as much or more than you began 2018Explanation / Answer
Question 2 (C) 239825
Question 3 (D) 380875
Question 4 (A) 180250
Question 5 (A) 500000,500000,400000,250000
Justification :
Cash Flow Budget Particulars Quarter 1 quarter 2 quarter 3 Quarter 4 Opening Balance 350000 239825 59575 118450 Inflows Sales Wheat 0 0 84000 0 Sunflower 0 0 296875 0 Tomatoes 0 0 0 440000 Total Inflows 0 0 380875 440000 Outflows Wheat 3675 31500 10500 0 Sunflower 9500 47500 28500 0 Tomatoes 16500 82500 110000 0 Other Exp 5000 5000 5000 5000 Telephone 500 500 500 500 Rent 61250 0 61250 0 Insurance 7500 0 0 0 Tax 0 7000 0 7000 Interest 6250 6250 6250 5000 Closing Cash Balance before Loan Repayment 239825 59575 218450 540950 Loan Repaid 100000 150000 Total Outflows 110175 180250 322000 167500 Closing Cash 239825 59575 118450 390950 Loan Particulars Quarter 1 quarter 2 quarter 3 Quarter 4 Opening 500000 500000 400000 250000 Interest 500000*3/12*5% 500000*3/12*5% 500000*3/12*5% 400000*3/12*5% Interest 6250 6250 6250 5000Related Questions
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