Floppy disc included with this
item has been shelved separately.
June 1989 Consult LUIS or ask circulation
staff for assistance.

Circular 843

Aquadec

Aquacultural Decision Support

Budgeting, and Financial Analysis Tbols

Chuck Adams and Rom Alderman

Florida Cooperative Extension Service/Institute of Food and Agricultural Sciences
University of Florida/John T. Woeste, Dean

101

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guide

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DISCLAIMER

The Board of Regents of the State of Florida, the State of Florida, the University of
Florida, the Institute of Food and Agricultural Sciences, and the Florida Cooperative
Extension Service, hereinafter collectively referred to as "UF-IFAS", will not be liable
under any circumstances for direct or indirect damages incurred by any individual or entity
due to this software or use thereof, including damages resulting from loss of data, lost
profits, loss of use, interruption of business, indirect, special, incidental or consequential
damages, even if advised of the possibility of such damage. This limitation of liability
will apply regardless of the form of action, whether in contract or tort, including
negligence.

UF-IFAS does not provide warranties of any kind, express or implied, including but not
limited to any warranty of merchantability or fitness for a particular purpose of use, or
warranty against copyright or patent infringement.

The entire risk as to the quality and performance of the program is with you. Should the
program prove defective, you assume the entire cost of all necessary servicing, repair, or
correction.

The mention of a tradename is solely for illustrative purposes. UF-IFAS does not hereby
endorse any tradename, warrant that a tradename is registered, or approve a tradename to
the exclusion of other tradenames. UF-IFAS does not give, nor does it imply, permission
or license for the use of any tradename.

IF USER DOES NOT AGREE WITH THE TERMS OF THIS LIMITATION OF
LIABILITY, USER SHOULD CEASE USING THIS SOFTWARE IMMEDIATELY
AND RETURN IT TO UF-IFAS. OTHERWISE, USER AGREES BY THE USE OF
THIS SOFTWARE THAT USER IS IN AGREEMENT WITH THE TERMS OF
THIS LIMITATION OF LIABILITY.

AQUADEC

Aquaultual Dcisin Supor
DOuuulrcln T

Aquacultural Decision Support
Budgeting and Financial Analysis Tools

Chuck Adams and Rom Alderman*

Copyright 1989
University of Florida.
Institute of Food and Agricultural Sciences

*Chuck Adams, Marine Economics Specialist, Florida Sea Grant,
Rom Alderman, Economics Analyst, Food and Resource
Economics, Institute of Food and Agricultural Sciences, University
of Florida, Gainesville.

- ' : : II'~ Iii: P11?~17p. :.ISRAT(I~

TABLE OF CONTENTS

SECTION PAGE

LIST OF FIGURES ------------------------------------- ii
ABSTRACT--------------------------------------------- iii
ACKNOWLEDGEMENTS------------------------- -- iv
INTRODUCTION ---------------------------------------- 1
Description -------------------------------------- 1
Specifications --------------------------------- 1

BEFORE USING AQUADEC --------------------------------- 2
Making A Backup Copy ----------------------------- 2
A Word About Menus ------------------------------- 2
Menu Tree --------------------------------------- 3
Brief Topic Description -------------------------- 3
Starting AQUADEC --------------------------- 5
Getting Around AQUADEC --------------------------- 6
Inputting Data --------------------------------- 6
Strategies for Using AQUADEC --------------------- 6

MAIN MENU OPTIONS ------------------------------------ 8
RATES ------------------------------------------- 8
LOANS ------------------------------------------- 11
BREAK/EVEN ------------------------------------- 14
FASTFIVE ---------------------------------------- 15
STATEMENTS --------------------------------------- 22
Year and Name ------------------------------- 22
BUDGETS -------------------------------------- 23
RECOVERY ------------------------------------- 27
LOANS ---------------------------------------- 30
START BAL ------------------------------------ 32
CASHFLOW ------------------------------------- 33
ENDING BAL ---------------------------------- 35
INCOME -------------------------------------- 36
OTHER ---------------------------------------- 37
Market ------------------------------------ 38
Equity ------------------------------------ 38
Financial -------------------------------- 39
Graph ------------------------------------- 39
Calc -------------------------------------- 40
Print ------------------------------------- 41
Save/Exit/Year ---------------------------- 43

MISCELLANEOUS NOTES ---------------------------------- 44
Printing Graphs ---------------------------------- 44
Advanced LOTUS Users ---------------------------- 44

SUMMARY ---------------------------------------------- 45

ORDERING INFORMATION --------------------------------- 46

REFERENCES ----------------------------------------- 47

APPENDIX A ------------------------------------------- 48
APPENDIX B ------------------------------------------- 62

LIST OF FIGURES

Figure Page

1. AQUADEC Menu Tree ------------------------------ 4
2. Sample AQUADEC Title Page -------------------'---- 3
3. RATES Menu Screen -------------------------------- 8
4. Sample AMORTIZED Option -------------------------- 9
5. Sample NPV & IRR Option -------------------------- 9
6. Sample Future Value Calculation ------------------ 10
7., LOANS Menu Screen -------------------------------- 11
8. Sample AMORTIZED LOANS Option -------------------- 11
9. Sample UNAMORTIZED 1-yr Loan Option -------------- 12
10. Sample UNAMORTIZED 10 yrs Loan Option ------------ 12
11. Sample AMORTIZED Loan Payment Calculation -------- 13
12. Sample BREAK/EVEN Price and Quantity Calculation- 14
13. Sample Enterprise Cashflow------------------------ 16
14. Sample Asset Section of Balance Sheet------------- 17
15. Sample Liability and Equity Section of Bal. Sheet- 18
16. Sample First Screen of Whole Business Cashflow---- 19
17. Sample Second Screen of Whole Business Cashflow--- 19
18. Sample Income Statement-------------------------- 20
19. Sample Financial Ratios Analysis------------------ 21
20. Example Year and Name Entry Screen --------------- 22
21. STATEMENTS Menu Screen ---------------------------23
22. Sample Fish Crop Budget Option ------------------ 24
23. Example Fish Crop Budget Analysis --------------- 25
24. RECOVERY Menu Screen ----------------------------- 27
25. Sample Machinery/Equipment Option ---------------- 28
26. Sample Buildings/Improvement Option -------------- 29
27. Sample Amortized Intermediate Loan Option -------- 30
28. Sample Unamortized Intermediate Loan Analysis
Option ---------------------------------------- 31
29. Sample START BAL Option (First Screen) ----------- 32
30. Sample START BAL Option (Second Screen) ---------- 32
31. Sample CASHFLOW Option (First Screen) ---------- 33
32. Sample CASHFLOW Option (Second Screen) ----------- 34
33. Sample CASHFLOW Option (Third Screen) ------------ 34
34. Sample ENDING BAL Option (First Screen) ---------- 35
35. Sample ENDING BAL Option (Second Screen) --------- 35
36. Sample INCOME Option (First Screen) -------------- 36
37. Sample INCOME Option (Second Screen) ------------- 36
38. OTHER Menu Screen -------------------------------- 37
39. Sample MARKET Option -----------------------------38
40. Sample EQUITY Option -----------------------------38
41. Sample FINANCIAL Analysis Option ----------------- 39
42. GRAPH Menu Screen -------------------------------- 39
43. CALC Menu Screen --------------------------------- 40
44. Print Menu Screen -------------------------------- 41
45. Choose Menu Screen ------------------------------- 42
46. Save/Exit/Year Menu Screen ----------------------- 43

ABSTRACT

AQUADEC is a budgeting and financial analysis software package
that can provide additional information to the financial decision-making
process of an aquacultural firm. A wide range of financial statements
and other related information can be generated by AQUADEC for a five
year period and for a given year in the planning horizon of a firm.
Sensitivity analyses can be performed on key management and market
parameters.

KEYWORDS: Aquaculture, Financial Analysis, Budgets, Cashflow, Profit-
ability.

ACKNOWLEDGEMENTS

AQUADEC is a version of FARMMGR, a software package previously
developed by Computer Related Services of the (FARMLab) Food and Resource
Economics Department and published by Institute of Food and Agricultural
Sciences, University of Florida. Though AQUADEC is designed to be
more appropriate for aquacultural applications, this manual draws heavily
from the original users manual for FARMMGR.

INTRODUCTION

Description

AQUADEC is a compilation of budgeting and financial decision support
tools for the new or on-going commercial freshwater or marine
aquacultural business. This software package allows the business manager
to develop a wide variety of financial statements and supportive
information to aid in the decision-making process of the firm. Financial
statements which can be generated using AQUADEC include cost recovery
schedules, loan amortization schedules, income statements, monthly
cashflows, balance sheets, operating budgets and others. The user
can also perform breakeven analyses on price and production and assess
the financial performance of the business through the use of a set
of financial ratios. In addition, selected data can be graphically
depicted to allow the user to visually assess trends in expenses,
revenues, etc. Utilizing these tools, the user is able to describe
a five year planning horizon and a specific operational year, vary
key parameters (such as price received for a unit of production), and
ask "what if" questions of an economic and financial nature. Individual
aquacultural business managers can use AQUADEC to analyze production,
financial, and management scenarios and evaluate the impact that certain
changes could have on profitability.

The software package described within this manual is not a
production systems simulation model. As such, the program does not
simulate the design and operation of an aquaculture facility. The
timing and magnitude of all relevant costs and revenues for an
appropriate year must have been previously determined. The task
performed by AQUADEC is to generate information rapidly from the user
supplied data that will assist in the management decisions facing a
commercial aquacultural business. Those offering financial advice
to potential aquaculturists should also find AQUADEC useful.

Specifications

AQUADEC is available for IBM PC compatibles running MS-DOS and
requires Lotus 1-2-3 release 2.X. A local Lotus dealer can provide
a comprehensive list of Lotus compatible computers. AQUADEC requires
at least 320K to operate. This memory capacity is available for most
desktop microcomputer systems. Because of its power, versatility,
and ease of use in information management, the electronic spreadsheet
package Lotus 1-2-3 has found wide acceptance in agribusiness
applications. Little or no programming skill is required to operate
Lotus. In addition, the use of AQUADEC requires no previous computer
skills or experience. As the user becomes increasingly familiar with
Lotus and AQUADEC, the flexibility of the software packages will allow
the modification of AQUADEC to better meet the specific business
management needs of the firm. A graphics monitor and printer are
required to utilize the graphics option in AQUADEC.

BEFORE USING AQUADEC

Making A Backup Copy

Before starting your first AQUADEC session you should protect
your AQUADEC program disk by making a backup copy of it. Making this
backup is important for two reasons. One, your original distribution
disk will give you a write protect error if you try to save your work
on it. And two, if your disk develops a fatal error you will always
have the original disk. The original AQUADEC program disk should be
put in a safe location and never used for day-to-day work.

Making a backup copy is easy when following these simple step-by-
step instructions:*

1 Put your Lotus 1-2-3 Utility Disk in drive A (left side)
and turn the power on. For IBM-PC users, if the power is
already on press the keys simultaneously.
For non-IBM-PC users, check the owner's manual for rebooting
procedures.

2 Label a blank disk as "AQUADEC Working Copy" and put this
disk in drive B (right side). For single drive users Lotus
1-2-3 will prompt you to appropriately swap disks as needed.

3 Use the arrow keys to select the Lotus 1-2-3 Disk Manager
option and press .

4 Use the arrow keys again to select the Lotus 1-2-3 Disk Copy
option and press .

5 When prompted, remove the Utility Disk from drive A, insert
your original AQUADEC program disk and press the
key.

6 When the copy is complete remove the original AQUADEC disk
from drive A and put it in a safe location.

7 Use your working copy of AQUADEC as the daily working copy.

*These procedures may vary for units having a single disk drive and
a hard disk. Refer to your owner's manual for the appropriate procedures
for making a backup copy.

A Word About Menus

The organizational ease of AQUADEC data entry and report generation
is partially due to the use of menus. You might think of a computer
menu as you would a restaurant menu. You make a selection from the
choices available and then tell the waiter or computer, what your
selection is. You tell AQUADEC which selection you want by using the
left and right arrows to highlight the desired selection and then
pressing the key. With computer menus, you may make a selection

which will in turn offer a submenu. The use of these menus and submenus
allows the user to move quickly between a large number of alternatives.
If the menu is not displayed, holding down the ALT key and pressing
M will cause the menu to be reactivated.

Menu Tree

AQUADEC is composed of a hierarchy of menus. Figure 1 is a visual
representation of the menu layout. The five boxes on the left make
up what is called the Main Menu. Figure 2 shows how the Main Menu
will look on your monitor. Note that the items listed in the first
row of Figure 2 (the menu) correspond to the Main Menu items found
in Figure 1. Each of the additional boxes to the right of the Main
Menu boxes in Figure 1 represent different levels of submenus available.
The arrows indicate the location of a branch from one level to another.
For example, the selection option RATES at the Main Menu level would
then require a second choice between four alternatives at the submenu
level.

FIGURE 2. Sample AQUADEC Title Page.

Rates Loans Break Even FastFive Statements Quit
A B C D E F
1
2
3
4
5
6 AQUACULTURE
7
8 Decision Support, Budgeting, and Financial Analysis Tools
9
10
11
12
13
14
15
16 Developed in cooperation with Florida Sea Grant by:
17 Computer Related Services (FARMLab), Food and Resource Economics Dept.
18 Cooperative Extension Service
19 Institute of Food and Agricultural Sciences
20 University of Florida

Brief Option Descriptions

To help you become familiar with the major tools in AQUADEC, the
next section briefly describes each available option. For a more
detailed discussion including examples, refer to the specific option
discussion. The option RATES, LOANS, and BREAK/EVEN are separate utility
options. The values computed by these options are not automatically
passed between themselves or the FASTFIVE and STATEMENTS option. Some
values generated within the FASTFIVE and STATEMENTS options, however,
are automatically passed to other suboptions in the respective menu.

AQUADEC MENU TREE

RATES -

LOANS -

BREAKEVEN

AMORTIZED
NPV/IRR
SAVE
RETURN

AMORTIZED LOANS
UNAMORTIZED LOANS (1 yr.)
UNAMORTIZED LOANS (10 yrs.)
SAVE
RETURN

BUDGETS -:

FISHCROP
FISHCROP
FISHCROP
FISHCROP
FISHCROP
RETURN

MACHINERY/EQUIPMENT
RECOVERY ----- BROODSTOCK
BUILDING IMPROVEMENT (Levees)
RETURN

LOANS .. AMORTIZED
UNAMORTIZED

STATEMENTS ---

MARKET

EQUITY

FINANCIAL

GRAPH 3-

CALC ,

PRINT -------

SAVE/EXIT/YEAR 3

RETURN

CASHFLOW
BALANCE
INCOME
CURRENT
LEVERAGE
PROFIT
EFFICIENCY
RETURN

MANUAL
AUTOMATIC
RETURN

CHOOSE
ALL
RETURN

CANCEL
SAVE ONLY
SAVE & EXIT
EXIT ONLY
YEAR/NAME

START BAL

CASHFLOW

ENDING BAL

INCOME

OTHER--

FASTFIVE

RETURN

CASHFLOW
BUDGETS
RECOVERY
LOANS
SHEETS
INCOME
MARKET
RETURN

FIGURE 1.

This is explained further in the FASTFIVE and STATEMENTS section of
this manual. The formulas used in AQUADEC are not presented in this
manual for the sake of brevity. However, a user wishing to examine
and possibly modify a formula may do so and should refer to the Advanced
Lotus Users section.

RATES: This Main Menu selection lets you calculate loan payments,
present value of a future sum, future value of a present sum, net present
value and the internal rate of return on an investment.

LOANS: This Main Menu selection has one submenu with five options.
These options let you analyze amortized loans, 1-year amortized loans,
10 year unamortized loans and save the data for future reference.

BREAK/EVEN: This Main Menu selection lets you perform a sensitivity
analysis via incremental changes in price and production levels.

FASTFIVE: This Main Menu selection provides the structure and
method for developing a 5 year analysis using a minimum dataset.
FASTFIVE helps combine budgets into a financial outlook which includes
cashflows, debt payments, balance sheets, income statements, and
financial ratios. FASTFIVE creates easy to use what-if scenarios,
especially with respect to longer term price, yield, interest rate,
acreage, and cost fluctuations.

STATEMENTS: This Main Menu selection is the largest and most
complex of the decision tools. Looking at Figure 1 you can see that
STATEMENTS has four menu levels with a total of ten different menus.
The STATEMENTS selection lets you calculate budgets, depreciation sched-
ules, loan schedules, beginning and ending balance sheets, income state-
ments and cashflows, which integrate to produce a comprehensive financial
picture.

QUIT: This Main Menu selection lets you quit AQUADEC.

Starting AQUADEC

To start an AQUADEC session follow these simple instructions:

1 Put your Lotus 1-2-3 disk in drive A and turn the power
on. For IBM-PC users if the power is already on press
the keys simultaneously. For
non-IBM-PC users, check the owner's manual for rebooting
procedures.

2 Put your AQUADEC working copy in drive B.

3 Press to select the Lotus 1-2-3 option.

4 When the program is loaded the title page will be dis-
played, (see Figure 2). You are now ready to begin
using AQUADEC. Some users may need to change the default
directory (/FD) or create a subdirectory and load (/FR)
the AUT0123 menu template. Refer to your DOS and Lotus
manuals for help in creating the subdirectory.

Getting Around AQUADEC

To select a menu option in AQUADEC use the left and right arrows
on your keyboard to move to your desired selection and press the
key. Some of the menu choices, such as the CASHFLOW statement, may
consist of more than one "page". To move to the next "page", or screen,
or to return to the most recent menu, press a "null return" (this is
described in greater detail within the discussion for each option).
A null return is simply an key with no data input. To move
from a submenu to a higher level menu (i.e. move from right to left
among the menu levels in Figure 1) select the RETURN option available
on the displayed menu selection. If at any time the user breaks out
of the menus or macro, refer to the "Advanced Lotus Users" section
of this manual to restart.

A couple of special notes... For the user to get out of FASTFIVE
and return to the Main Menu requires a few extra keystrokes. At any
time while in FASTFIVE, the user need only press , , ,
and then select AUT0123 by moving the cursor to that filename. 'The
user can then press and the Main Menu to AQUADEC will appear.
Getting out of the STATEMENTS option can also be tricky at first.
From the first submenu level of STATEMENTS select the OTHER option.
From this new level select the SAVE/EXIT option. From this third new
level select the appropriate option. CANCEL returns you to the previous
menu level. SAVE ONLY saves your data and returns you to the previous
menu level. SAVE & EXIT saves your data and returns you to the Main
Menu. EXIT does not save the data but does return you to the Main
Menu (be cautious here!). YEAR/NAME lets you change the year and name
for which your information applies.

Inputting Data

From this point on the user is assumed to have become familiar
with Lotus 1-2-3 and moving around on a spreadsheet. All work done
in AQUADEC is accomplished by using Lotus 1-2-3's "range input" facility.
This facility allows only the high intensity (for monochrome monitors)
or contrasting green cells (for color monitors) to accept input. These
are the cells in which AQUADEC will allow you to enter new data or
change existing data. All other cells are occupied by titles designated
by AQUADEC or values that AQUADEC has computed from your raw data.
High intensity cells, as the name implies, appear brighter than low
or normal intensity cells. The difference in intensities for monochrome
monitors and color contrast (green) for color monitors is easily
distinguishable on the monitor display.

Strategies for Using AQUADEC

The user has much flexibility in using AQUADEC to address
aquacultural business and financial decision-making. However, the
authors do suggest a simple strategy for using the various options
found within AQUADEC. When someone is considering an initial investment
or significant investment in an on-going business, it is very helpful

to examine the performance of that investment over a multi-year period.
Such information will allow a comparison with other investment
alternatives over the same multi-year planning horizon. The FASTFIVE
option will allow users to perform an analysis on a proposed aquaculture
investment for comparison purposes. This may be a good "first-step"
in using AQUADEC. Once a favorable long-run alternative has been
identified by using FASTFIVE, the STATEMENTS option can be used to
examine the performance of the investment in a much more detailed fashion
on a monthly basis. The LOANS, RATES, and BREAKEVEN options can be
used to provide further information. The FASTFIVE option may not be
very useful in assessing the short-run issues. On the other hand,
STATEMENTS may be too cumbersome to examine multi-year decisions.
Therefore, it is suggested that the FASTFIVE option be used to make
a "first cut" at long term issues, followed by a more detailed analysis
with the STATEMENTS option.

NOTE: The original copy of AQUADEC as initially received from IFAS
by the user contains only example input data. "ERR" will appear in
some of the screens, which indicates that the computations cannot be
performed because no sample data has been provided (i.e. the input
data are all zeroes). Each "ERR" will be replaced by an accurate value
when the user supplies all of the required input data.

MAIN MENU OPTIONS

AQUADEC offers five Main Menu options. These are RATES, LOANS,
BREAK/EVEN, FASTFIVE and STATEMENTS. This section describes each
of these Main Menu options and their respective submenus in detail.

RATES

This tool lets you calculate constant amortized payments, present
values (PV), future values (FV), net present values (NPV), and internal
rates of return (IRR). Beierlein, Schneeberger, and Osburn (1986)
is an excellent reference to these time value concepts. The RATES
option menu has two main selections (AMORTIZED and NPV/IRR) that the
user may choose (see Figure 3). A third option, SAVE, allows you to
save the last data entered

FIGURE 3. RATES Menu Screen

Amortized NPV & IRR Save Return
Payment, Present Value, and Future Value amortization calculations.
A B C D E F 6
21
22
23
24
25
26
27 RATES OF RETURNS
28
29
30
31
32
33
34 Developed in cooperation with Florida Sea Grant by:
35 Computer Related Services (FARMLab), Food and Resource Economics Dept.
36 Cooperative Extension Service
37 Institute of Food and Agricultural Sciences
38 University of Florida
39
40

The first choice, AMORTIZED, lets you calculate amortized payments,
PV, and FV (see Figure 4). The amortized payment calculation requires
data on rate of return per period (interest), number of periods, and
amount. To calculate the present value of a future sum or the future
value of a present sum, you simply move the cursor to the appropriate
cell and supply the rate of return per period, number of periods, and
cash inflows or outflows. The value of interest will be computed as
soon as you enter a value in a cell and then move to a new cell or
press on the keyboard.

FIGURE 4. Sample AMORTIZED Option

A B

RATE OF RETURN/PERIOD

NUMBER OF PERIODS

AMOUNT

90,000

15,929

PAYMENTS (FLOWS)

5,650 3,494,964

1,000

1,000

By pressing a null return, you will return to the RATES menu where
you can select the second option NPV & IRR (see Figure 5). This option
can be useful in comparing the revenue generating ability of alternative
investments. To calculate NPV you must supply the desired rate of
return and the net inflows and outflows of each. To find the IRR of
an investment you supply the net inflow and outflow values and a "guess"
to resolve multi-valued answers. The algorithm Lotus 1-2-3 uses for
the IRR can sometimes result in multiple solutions. A "guess" is
required to reduce the range of possibilities. Again, refer to your
Lotus 1-2-3 manual for more explanations. The parentheses indicate
a net outflow (i.e. the "initial" outflow indicating an investment).

FIGURE 5. Sample NPV & IRR Option

(Net Present Value)

L M N
S IRR (Internal Rate of Return)

Rate of Return

5 NET PRESENT VALUE -

INITIAL FLOW
PERIOD ENDING
0

12.00%

1,460

(5,000)
1,000
950
800
970
1,11 0
1,200
1,080
800
1,150
1,200
1,000
1,000
1,000

IRR 13.56%
6UESS (to Resolve Multi-valued
answer)-> 10.00%

INITIAL (5,000)
Period 1 1,000
2 950
3 975
4 (1,000)
5 1,110
6 1,200
7 1,080
8 990
9 1,150
10 1,240
11 1,000
12 1,000
13 1,000

Amortized
Payment
PMTT

12.00%

F

Present
Value
PV

12.007.

6

Future
Value
FV

1.00%

360

-------------------- -- ------ --i- ---- --

Example:

Let's assume that you invest $5,000 a year for the next ten years.
If you can earn 10% interest how much will your investment be worth
at the end of ten years? To solve this problem select the RATES option
from the AQUADEC Main Menu. Select the AMORTIZED option from the RATES
submenu. Press the right arrow key twice to highlight the rate of
return row and the FV column (row 7, column G). Type <.10> or <10.0%>,
press the down arrow, type <10>, press the down arrow, type <5000>
and press . Note that the interest percentage can be entered
in decimal form or as an integer followed by the percent symbol. This
format is used.. throughout AQUADEC for entering percentages.. The value
displayed in the "amount" row on your screen should be 79,687 (see
Figure 6). For IBM-PC users if you want a quick printout of this screen
press . To return to the RATES menu enter one null
return. To return to the AQUADEC Main Menu, move the cursor to the
RETURN option and enter an additional null return.

FIGURE 6. Sample Future Value Calculation

A B C D E F 6
1
2
3 Amortized Present Future
4 Payment Value Value
5 PHT PV FV
6
7 RATE OF RETURN/PERIOD 12.00% 12.00% 10.00X
S
9 NUMBER OF PERIODS 10 10 10
10
11 AMOUNT 90,000 5,650 79,687
12
13 PAYMENTS (FLOWS) 15,929 1,000 5,000
14
15
16
17
18
19
20

LOANS

The second tool in the AQUADEC tool box is the LOANS option which
calculates amortized loans, 1-year unamortized loans, 10-year unamortized
loans for several items (as opposed to only one item in the AMORTIZED
option of RATES) and also allows you to save the data for further
analysis. This option has three main selections (AMORTIZED LOANS,
UNAMORTIZED 1 yr., UNAMORTIZED 10 yrs.)(see Figure 7).

FIGURE 7. LOANS Menu Screen

AMORTIZED LOANS UNAORTIZED (lyr) UNIORTIZED (lOyr) AVE RETURN
Analyze loans with equal payments
A B C D E F 6 H
41
42
43
44
45
46 LOAN ANALYSIS
47
48
49
50
51
52
53
54 Developed in cooperation with Florida Sea Grant by:
55 Computer Related Services (FARMLab), Food and Resource Economics Dept.
56 Cooperative Extension Service
57 Institute of Food and Agricultural Sciences
58 University of Florida
59
60

The AMORTIZED LOANS analysis calculates monthly payments for up
to ten intermediate items and up to three long term items (a quarterly
payment schedule will require the use of the unamortized option).
The user supplies the name of the item, the year and month of purchase,
the amount of the loan, the interest rate, and the useful life of the
loan. See Figure 8 for a sample screen.

FIGURE 8. Sample AMORTIZED LOANS Option

A a C D E F 6 H
I AMORTIZED INTERMEDIATE LOANS RATE LIFE MONTHLY
2 NAME YR MTH AMOUNT (%) *ths PAYMENT

4 1 FORD TRACTOR 80 4 $28,000 12. 80% 48 748
5 2 CHEVY PICKUP 82 8 *10,000 11.95% 48 263
6 3 FERT. SPREADER 83 3 *1,000 12.00X 48 26
7 4 equipment 79 2 *60,000 12.00X 48 1580
a 5 0
9 6 0
10 7 0
11 8 0
12 9 0
13 10 0
14 SUBTOTAL 2618
15 LONG-TERM LOANS
16 1 LVST LOAN 79 1 S30,000 12.00X 60 667
17 2 mortgage 78 1 *100,000 12.00% 360 1029
18 3 0
19 SUBTOTAL 1696
20 TOTAL 4314

The UNAMORTIZED 1-year loan analysis runs, for 12 months and
calculates the monthly interest due, accrued interest, outstanding
principal, ending loan balance for the month, and the amount of principal
that was paid during the 12-month period. The user supplies the name
of the loan, interest rate, number of months for payment, month the
loan was initiated for the current year, percent PCA stock required
if any, beginning outstanding principal, and any previous interest
due. See Figure 9 for a sample screen.

FIGURE 9. Sample UNAMORTIZED 1-year Loan Option

I J

Nae of Loanm COUNTY PCA
Interest Rt.: 10.00%
Actual PCA Rt: 11.11X
12 Mths Amortization-
NTH Ending Payments C

1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 5,000
10 0
11 0
12 0

If loan initiated
which month ?s
PCA Stock (%):
Prin. Remain.

1,769 Prev.
urr.Int. Acc.Int.

204 2,204
226 2,430
230 2,660
234 2,894
239 3,133
243 3,376
248 3,624
252 3,876
257 0
177 177
180 358
184 541

Int.Dues
Principal

20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
19,133
19,133
19,133
19,133

this year,
0
10%
20,000
2,000
ENDING BAL.

22,204
22,430
22,660
22,894
23,133
23,376
23,624
23,876
19,133
19,310
19,491
19,675

The UNAMORTIZED 10-year loan analysis calculates, on a yearly
basis, the current interest due, any delinquent interest, outstanding
principal, ending loan balance for each year, and the amount of principal
that was paid each year. The user supplies the name of the loan, amount
to be paid, interest rate, year the loan started, initial loan amount,
percent PCA stock required, if any, beginning principal remaining,
and the amount of any delinquent interest. See Figure 10 for a sample
screen.

FIGURE 10. Sample UNAMORTIZED 10-year Loan Option

I J

CURRENT YEARs 1988
Name of Loans Catfish Fare
Interest Rt.i 12.00%
Actual PCA Rt: 13.33%
Amortization Amount -
for 10.00 Years -
Year Ending Payments C

1988 42,296
1989 42,296
1990 42,296
1991 42,296
1992 42,296
1993 42,296
1994 42,296
1995 42,296
1996 42,296
1997 42,296
1998 0

L

$215,000
42,296
urr. Int.

31,533
29,955
28,145
26,069
23,689
20,960
17,831
14,243
10,129
5,411
1

Year Loan Started:
Initial Loan Amt.s
PCA Stock ? (X)i
Cash Receiveds
Principal Remain.s
Delinquent Int.s
Del.Int. Principal

0 204,237
0 191,896
O 177,745
0 161,518
0 142,911
0 121,576
0 97,111
O 69,058
0 36,890
0 5
1 5

0

1985
$500,000
10%
*450,000
$215,000
0S
ENDING BAL.

204,237
191,896
177,745
161,518
142,911
121,576
97,111
69,058
36,890
5
6

Example:

You are considering buying a $10,000 tractor for pond maintenance.
If you buy the tractor in January 1987 how much will the monthly payments
be on a four year loan at 14.80%?

From the Main Menu select the LOANS option. From the LOANS menu
select the AMORTIZED LOANS option. Move the cursor to row 4, column
B. Enter the item name and press the right arrow. Continuing
in the same manner, enter the year of purchase <87>, month of purchase
<01>, loan amount <10000> and interest rate <.1480>. Enter the life
of the loan in months <48>, and press the key. The monthly
payments should be $277 (see Figure 11). With this information you
can now determine if your monthly cash flow is sufficient to cover
loan payments on the tractor. For example, the payment estimates can
now be included in the user supplied information for the cash flow
option in STATEMENTS. The impact to the firm's cash flow can then
be observed.

FIGURE 11. Sample AMORTIZED LOAN Payment Calculation

A B C D
AMORTIZED INTERMEDIATE LOANS
* NAME YR MTH

1 FORD TRACTOR 87 1
.2 CHEVY PICKUP 82 8
3 FERT. SPREADER 83 3
4 equipment 79 2
5

10
SUBTOTAL
LONG-TERM LOANS
1 LVST LOAN
2 mortgage
3
SUBTOTAL
TOTAL

79 1
78 1

E

AMOUNT

$10,000
*10,000
*1,000
$6,000

F
RATE
(%)

14.80%
11.95%.
12.00%
12.00%

*30,000 12.00% 60
$100,000 12.00% 360

6 H
LIFE MONTHLY
mths PAYMENT

48 277
48 263
48 26
48 158
0
0
0
0
0
0
725

667
1029
0
1696
2421

BREAK/EVEN

The next AQUADEC tool, BREAK/EVEN, is useful in calculating net
returns for a given species and production system. The user can then
determine how sensitive net returns are to changes in price and produc-
tivity.

The user supplies four pieces of information, including the expected
selling price ($ per unit, where a unit may be pounds, kilos, cwt,
etc.), the expected cost (variable or total cost) of production per
acre, hectare, etc., the expected yield (expressed in the same units
as the selling price), and the number of acres, hectares, etc. (water
surface or total) to be in production. AQUADEC uses this information
to perform the sensitivity analysis. The user can produce break-even
levels of production and prices using this option.

Example:

Using the assumptions shown in Figure 12 of a $0.65 per pound
selling price for catfish, expected cost per acre of $1,864, yield
of 3000 pounds per acre, and ten acres in production, the net returns
per acre are $860 (i.e. ($0.65 3000) (1864 10)). Notice that
the returns are $-1,090 per acre if the price is held at $0.65 and
production falls to 2700 pounds per acre. Also, note that the break-even
production level for the $0.65 selling price is between 2850 and 3000
pounds per acre. In addition, the break-even price for the 3000 pounds
per acre production level is between $0.61 and $0.63 per pound.

FIGURE 12. Sample BREAK/EVEN Price and Quantity Calculation

A a C D E F
2 1 IELL PRICE (*/Cwt,JU, LBS,E 0.65 t EXPECTED Cost/Hec.,Acs 1,864
3 I YIELD (Cwt,BU,LS, Etc 3000 *C of Hactares,Acre, 10
4
5
6 RETURN SEN8 ITIVITY
7
8 SELLING PRICE
9
10 EXPECTED YIELD 0.61 0.63 0.65 0.67 0.69
11
12
13 2550 (3,085) (2,575) (2,065) (1,555) (1,045)
14 2700 (2,170) (1,630) (1,090) (550) (10)
15 2850 (1,255) (685) (115) 455 1,025
16 3000 (340) 260 860 1,460 2,060
17 3150 575 1,205 1,835 2,465 3,095
18 3300 1,490 2,150 2,810 3,470 4,130
19 3450 2,405 3,095 3,785 4,475 5,165
2

FASTFIVE

The FASTFIVE option efficiently examines a multitude of financial
scenarios over a five-year period. FASTFIVE can assess long-term
alternatives for factors such as prices, yield fluctuations, financing,
interest rates, etc. The use of this option can narrow the field on
the possible investment or management alternatives the user faces.
The user is also provided with a means to expand and customize an
analysis within a very simple and straightforward structure.

There are a variety of tools within FASTFIVE. These include
enterprise cashflows, balance sheets, whole-business cashflows, income
statements, and financial ratios. The data required to execute these
tools is minimal and described in the following sections.

The FASTFIVE option differs from other AQUADEC options in that
it is not menu driven. In other words, the tools available within
FASTFIVE are not accessed via a menu, but through a series of simple
keystrokes. These will also be described below.

To select FASTFIVE, the user must return to the Main Menu screen
(See Figure 2) and select the FASTFIVE option. After selecting FASTFIVE
from the Main Menu, the user will automatically be ready to work with
the first option the enterprise cashflows. Remember: to get out
of FASTFIVE the user must enter , , , then select AUT0123.
This will return you to the Main Menu of AQUADEC.

FASTFIVE operates on a sequential basis, as does STATEMENTS.
In other words, information generated by the enterprise budgets is
used in the balance sheets, income statements, etc. In addition, the
interest rates used to compute debt retirement, as found in the balance
sheet, are given in the whole-business cashflow. Therefore, the user
is advised to proceed through FASTFIVE by entering the required input
for the various options in the order by which they are discussed in
the following sections. Because of the interdependency of the various
financial statements regarding user-supplied data and information
FASTFIVE generates itself, the user is suggested to complete data entry
for all statements before the spreadsheet is recalculated and the results
interpreted. To save changes, enter , , , .

Enterprise Cashflows:

The first tool available within FASTFIVE is the enterprise
cashflows. The user is automatically placed in this tool by selecting
FASTFIVE from the AQUADEC Main Menu. The first screen displayed is
a five-year enterprise cashflow for "crop #1" (see Figure 13). The
user may analyze up to 10 different enterprises (i.e. one each for
catfish, tilapia, or other species). Simply press the page down Dn> key to view the next cashflow for "crop #2". The user will press
to move to each of the next screens. By pressing ,
the user can move back to the previous enterprise. By pressing ,
the user will be returned to the first screen "crop #1".

The purpose of the enterprise cashflow is to compute net returns
over cash expense. To compute an enterprise cashflow for each species,
the user must supply a description, beginning year, price per unit
output, yield per acre, cash (variable) cost per acre, and number of
acres in production. These items are indicated by the boxes in Figure
13 and are highlighted cells on the screen. The worksheet recalculates
the cashflow each time a new entry is made. It is also possible to
set recalculations to manual (/WGRM) and press the Calc function key
each time you wish to recalculate the cashflow. The information
generated within each enterprise cashflow is totaled over all ten
enterprise cashflows and passed on to subsequent options in FASTFIVE.
FIGURE 13. Sample Enterprise Cashflow

A 8 C D E F 6 H I
1 F A S T F I V E IFAS/FRE, Copyright (c)1988 University of Florida
2 NET FLOW (before Op.Loan): $20,557 $20,557 $20,557 $20,557 *20,557
3 1987 1988 1989 1990 1991
4
5 $ CashFlow begs 1987
6
7 Crop *Is Pricesl $0.65 0.65 $0.65 $0.65 $0.65
8 ICatfishl Yield 2500 2500 2500 2500 2500
9
10 Receipts/Acre: $1.625 $1,625 $1,625 $1,625 $1,625
11 Cost/Acres $ 8871 $887 $887 $887 $887
12
13 Gross/Acres $738 $738 $738 $738 $738
14
15 Acres I 50 50 50 50 50
16 Gross Receipts 81,20 81,250 81,250 $881 250 181 ,25081,2
17 Total Costs $44,350 $44,350 $44,350 444,350 $44,350
18
19 Net CashFlow *1s $36,900 $36,900 $36,900 $36,900 $36,900
20

Note that the user must specify the year in which the cashflow
begins. The five year period will be changed as the beginning year
is changed. The user must also specify a per unit price. The unit
price selected must be consistent with the units assumed for yield.
Note that price does not change over time. There is no built-in increase
in price each year. The user may alter this default trend by spacing
over to cell F7 and using the Lotus Edit function to change the formula.
For example F7 default formula is "+E7". This could be changed to
"+E7*1.2" for a 20 percent increase and then copied to the adjacent
cells to the right. However, the price for specific years beyond the
first year may be altered. Yield per acre, cost per acre, and acres
are assumed constant over time. However, the user has the flexibility
to change these assumptions via the Edit function if so desired.

For additional information on how to use and interpret a cashflow
statement in an agribusiness setting, the user is suggested to refer
to van Blockland [5].

Balance Sheet:

The next tool available within FASTFIVE is the market value balance
sheet. The balance sheet allows the user to estimate and project firm

assets and liabilities. To access the balance sheet, the user may
enter ten consecutive 's from the first enterprise budget (i.e.
Home) or press the F5 key (i.e. Go To key) then enter , and .

The balance sheet consists of two screens (see Figures 14 and
15). The first screen is the Asset section. Pressing another
will move the user to the second screen, or the Liability and Equity
section. To move back to the first screen, press .

To complete the Asset section (see Figure 14), the user must supply
beginning balance estimates for cash, accounts receivable, current
assets, machinery and equipment, breeding (brood) stock, intermediate
assets, land and other long-term assets. These values are assumed
constant over time, which yields a constant "total asset value".
However, the user may change this assumption by altering the formulas,
as described in the enterprise cashflow section and the "Advanced Lotus
Users" section. Caution should be taken to include all liabilities
(including personal loans used in the business). Generally, financial
analysts suggest that assets be assessed at market value so the analysis
can be compared to alternatives such as the disposition of some or
all the assets and/or the reinvestment of funds. It is still possible
for the user to produce a "book value" or cost balance sheet and compare
with the market value approach. Care should be taken when adding large
purchases in the midstream of the analysis. Typically these purchases
need to be added to the asset section, the liability section for
financing acquired, and the cashflow statement under Purchases and
Other Outflows (Loans).
FIGURE 14. Sample Asset Section of Balance Sheet.

A B C D E F 6 H I
1 F A S T F I V E IFAS/FRE, Copyright (c)1988 University of Florida
2 NET FLOW (before Op.Loan): $20,557 $20,557 *20,557 $20,557 $20,557
3 1987 1988 1989 1990 1991
4
165 MARKET VALUE BALANCE SHEET
166 (Beginning Balance)
167 Cash (Min. $1,000 Balance) 2387 11744 32302 52859 73416
168 Accounts Receivable 5001 500 500 500 500
169 Other Current Assets 9500 9500 9500 9500 9500
170 Subtotal 12387 21744 42302 62859 83416
171 Machinery & Equipment 111668 11668 11668 11668 11668
172 Livestock (Broodstock) 0 0 0 0 0
173 Other Intermediate Assets .0 0 0 0
174 Subtotal 11668 11668 11668 11668 11668
175 Land & other L-term Assets 50000 50000 50000 50000 50000
176 Other Long-Term Assets 3375 3375 3375 3375 3375
177 Subtotal 53375 53375 53375 53375 53375
178
179 TOTAL ASSETS 77430 86787 107345 127902 148459
180 usms ....... m s a =

To complete the Liability and Equity section (see Figure 15),
the user must supply beginning estimates for accounts payable, operating
loans, other current liabilities, intermediate loan and length of loan,
other intermediate liabilities, long-term loans, and length of payment
and other long-term liabilities. All are assumed constant over time,
except for the annual values for operating intermediate and long-term
loans. These liabilities are retired over time in relation to the

length of loan (supplied by the user in this section) and the interest
rate (supplied by the user in the "Whole-Business Cashflow" section).
FIGURE 15. Sample Liability and Equity Section of Balance Sheet

A B C D E F 6 H I
I F A T FIV IF /FMR, CI yright c)1988 University of Florida
2 NET FLO (before Op.Loan) 020,557 920,557 *, 20,57 620,557
3 1987 1988 1989 1990 1991
4
181 Accounts Payable 1 00 1500 1500 1500 1500
182 Operating Loans 10000 0 0 0 0
183 Other Current Liabilities 938 93 938 938 938
184 Subtotal 12438 2438 2438 2438 2438
185 Intered.Loarn-Yrs 7 115001 10360 9084 7654 6052
186 Other Interr. LiabilitiI esl 10 100 100 100 100
187 Subtotal 11600 10460 9184 7754 6152
188 LongTerm Loans-Yrs 30 4775 4755 4733 4708 4680
189 Other L.T. Liabilities I 0 0 0 0 0
190 Subtotal 4775 4755 4733 4708 4680
191 Total Liabilities 28813 17653 16355 14900 13271
192 Owner(s) Equity 48617 49134 90990 113002 135189
193
194 TOTAL LIABILITIES & EQUITY 77430 66787 107345 127902 148459
195 mml m
196 -...... ....... .......-....-----.-.-..-.....---.---------...-
196

FASTFIVE analyzes debt on an aggregate basis for simplicity.
The user may group liabilities into Operating, Intermediate and Long-
term, and then total them for each category prior to entry. More
advanced spreadsheet users may wish to develop side schedules (refer
to LOTUS manual) to sum itemized debt as well as other input requirements
such as assets, cost per acre, and other cashflow items. Itemizing
may not be necessary in all cases, such as feasibility analysis of
a new business, but it is recommended for older or very complex
operations. Length of intermediate loans must be at least one year.

For further information on how to construct and interpret a balance
sheet, the user is suggested to refer to van Blokland [6].

Whole-Business Cashflow:

The third tool available within FASTFIVE is the whole-business
cashflow. This tool differs from the enterprise cashflow option in
that all enterprise activity (e.g. all ten enterprise cashflows) are
summarized in one cashflow statement. The whole-business cashflow
consists of two screens (see Figures 16 and 17), the first of which
can be accessed by pressing after completing the second Market
Value Balance Sheet screen. An additional will move the user
to the second screen of the Whole-Business Cashflow.

To complete the first screen of the Whole-Business Cashflow (see
Figure 16), the user must provide interest rates for intermediate and
long-term loans, purchases and other outflows, unallocated cash expenses,
and any other inflows. Note that this information must be supplied
for all five years. The interest and principal payments on the loans
will then be computed by FASTFIVE. Also, the loan information will
be used in the previously described Market Value Balance Sheet.

FIGURE 16. Sample First Screen of Whole-Business Cashflow

A B C D
F A S T F I V E IFA/FRE,
NET FLOW (before Op.Loan)a

1
2
3
4
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212

E F S H I
Copyright (c)198 University of Florida
$20,557 $20,557 $20,557 $20,557 $20,557
1987 198 1989 1990 1991

$81,250 $81,250 $81,250 $81,250 $81,250
$44,350 444,350 $44,350 $44,350 $44,350
$36,900 $36,900 $36,900 $36,900 $36,900

S12.00% 12.00% 12.00% 12.00% 12. 00X
1380 1243 1090 918 726
1140 1277 1430 1601 1794

S12.00% 12.00% 12.00% 12.00% 12.00
573 371 568 565 562
20 22 25 28 31

1000 1000 1000 1000 1000
1000 1000 1000 1000 1000
0 0 0 0 0

Once the information for the first screen has been supplied, the
user must now press again to view the second screen (see Figure
17). The user must supply values for other income, paid-in capital
(i.e. additional contributions for expenses), income tax payments,
living expense withdrawals, and operating loan interest rate. Again,
these must be supplied for each of the five years.

FIGURE 17. Sample Second Screen of Whole-Business Cashflow

A B C D E F
FA 8 T FIVE IFAS/FRE, Copyright (c)1988
NET FLOW (before Op.Loan): $20,557 $20,557
1987 1988

Other Income (Uov't,...) 770 770
Addition Paid-in Capitals 0 0

Income Tax Paymentas 0 0
Mithdrawals (Livina....- ) 12000 12000

NET FLOW (before Op.Loan)s 20557

Operating Loans
Interest Rate
Additional Operating Loans
Loan Payments Interest
Principals

NET CHANGE IN CASH BALANCE

12.00%o

1200
10000

9357

20557

12.00X
0
0
0

20557
............

6 H I
University of Florida
$20,557 $20,557 $20,557
1989 1990 1991

770
0

0
12000

20557

770
0

0
12000

20557

12.00% 12.00%
0 0
0 0
0 0

20557 20557
. ..

Total Enterprise Sal8es
Cash Expensess
Net Flow (before below)s

Intermediate Loanas
Interest Rate
Loan Payments Interests
Principals
Lang-Term Loansl
Interest Rate
Loan Payments Interests
Principal

Purchases & oth outflows
Unallocated Cash Expenses
Other Inflows (Loan,...)s

1
2
3
4
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228

770
0

0
12000

20557

12.00%1
0
0
0

20557
n m..........

The values given on the two Whole-Business Cashflow screens will
be used to compute an annual cash flow, which is found at the bottom
of the second screen. This value will provide an estimate of the end-
of-year net cash available for each year in the five-year planning
horizon.

In summary, the whole-business cashflow automatically combines
the enterprise cashflows, the cash balance and the loan balances with
all other cashflow items to show cash needs and surpluses. Use the
same groupings in the liability section to add up the total payments
required annually. Again, for the more experienced user, side schedules
may be developed to provide and sum the detail of any values. FASTFIVE
may also be used to assess the effects of refinancing new operations/
enterprises. Note that the operating loan is automatically paid off
by FASTFIVE and extended as cash is needed.

For additional information on interpreting cashflows, the user
is suggested to refer to van Blokland [5].

Income Statement:

The next tool available within FASTFIVE is an income statement
(see Figure 18). The user does not need to supply any information
for the income statement, because previously supplied or computed
information is used to complete the analysis. The user accesses the
income statement by pressing another after completing the second
screen of the whole-business cashflow.

FIGURE 18. Sample Income Statement

A 3 C D E F 6 H I
1 F A 8T F I V E IFAS/FRE, Copyright (c)198W University of Florida
2 NET FLOW (before Op.Loan) *20,557 *20,557 *20,557 *20,557 *20,557
3 1987 1988 1989 1990 1991
A _II

229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244

INCOME STATEMENT

Enterprise Revenue 81250 81250 81250 81250 81250
Other Income 770 770 770 770 770
Cash Expenses 44350 44350 44350 44350 44350
Unallocated Cash Expenses 1000 1000 1000 1000 1000
Interest Expense 3153 1814 1658 1483 1288
Gross Margin 33517 34856 35012 35187 35382
Depreciation 1167 1167 1167 1167 1167
Net Income before taxes 32350 33689 33845 34020 34215
ONNN..M ... 41...... . .

The income statement simply subtracts total expenses from total
revenue. Note that depreciation is an expense item and not a cash
item. Also, capital flow (i.e. withdrawals and contributions) and
loan principal are cash items and not income statement items. Net
income provides the user with an approximation of business income before
taxes.

For further information on how to use an income statement, the
user is suggested to refer to van Blokland [7].

Financial Ratios:

The final tool available in FASTFIVE is a summary of financial
ratios (see Figure 19). These ratios are computed with information
previously supplied by the user or computed by FASTFIVE.

Financial ratios provide a basis for comparison with alternative
scenarios. Return on Equity (ROE) indicates how well equity is
performing in this operation. If a planned change in the enterprise
mix increases ROE, then this alternative's feasibility should be
investigated further, especially for concerns such as additional
expenditures and risk associated with the new enterprise or technology
practice. ROE is also often compared to capital market rates (i.e.
CDs, bond yields, etc.).

The Return on Assets (ROA) ratio provides the same kind of
comparison except it shows what performance will be if the operation
was not carrying debt. Debt/Assets shows the fraction (e.g. 0.50=50%)
of assets financed. The leverage ratio (Debt/Equity) shows the
operation's position (leverage) in obtaining additional financing.
The current ratio (Current Assets/Current Liabilities) shows the ability
of the operation to pay its short-term debts. The gross ratio shows
the amount of cash expenses required to generate revenue. The expense
structure ratio shows the portion of cash outflow which is obligated
to loan payments and the debt structure ratio shows the portion of
debt that is current (due within twelve months).

For additional information on how to use and interpret various
financial ratios, the user is suggested to refer to van Blokland [8].

FIGURE 19. Sample Financial Ratios Analysis

A 8 C D E F 6 H I
1 F A T F I V E IFAS/FRE, Copyright (c)1998 University of Florida
2 NET FLOW (before Op.Loan): $20,557 $20,557 *20,557 $20,557 $20,557
3 1987 1988 1989 1990 1991
4

245
246 FINANCIAL RATIOS
247
248 Return on Equity (NI/Eqty) 66.54%
249 Return on Assets(NI+Int/A) 45.85%
250
251 Debt/Assets 0.37
252 Leverage (Debt/Equity) 1.09
253 Current Ratio (C.A./C.L.) 1.00
254
255
256 Gross Ratio(Cash Exp/Rev.) 0.55
257 Exp. Structure (LP/Exp+LP) 0.24
258 Debt Structure (C.L./T.L.) 0.22
259
260 i i i i i

48.73% 37.20% 30.11% 25.31%
40.91% 33.07% 27.76% 23.91%

0.20
0.44
8.92

0.55
0.06
0.05

0.15
0.31
17.35

0.55
0.06
0.05

0.12
0.22
25.78

0.55
0.06
0.06

0.09
0.16
34.22

0.55
0.06
0.07

-I I--IM

STATEMENTS

The STATEMENTS option of AQUADEC is the largest and most complex
of the decision tools and requires the user to have a more thorough
understanding of Lotus. Because of its complexity the STATEMENTS option
uses multi-tiered menus. Refer back to Figure 1. Several financial
analysis tools are available under the STATEMENTS option including
budgets, depreciation schedules, loan analyses, beginning cost basis
balance sheet, cashflow, ending cost basis balance sheet, income
statement, market value balance sheet, owner equity statement, and
financial ratios, which work together to produce a comprehensive
financial picture of the aquaculture business within a given year.
Additional AQUADEC diskettes can be created so that separate planning
scenarios of STATEMENTS can be created and saved (each representing
a separate year) or so that the user can monitor current year actual
activity. In addition, several functions are available including
graphing routines, choice of recalculation mode, hard copy print
routines, and a save/exit option. Each major tool will be discussed,
but first let's look at how AQUADEC helps you initiate the STATEMENTS
option.

Year and Name:

When you select the STATEMENTS option from the Main Menu you should
immediately enter the year and name for the analysis you are about
to perform. To do so, from the STATEMENTS menu, select the OTHER option,
from the OTHER menu select the SAVE/EXIT/YEAR option. From the
SAVE/EXIT/YEAR menu, select the YEAR/NAME option. Move the cursor
down, type in the appropriate information, and press a "null return"
(see Figure 20). The year that you selected will be used as the object
year for the entire financial analysis.

FIGURE 20. Sample Year and Name Entry Screen

BUDGETS RECOVERY LOANS START BAL. CASHFLOW ENDING BAL. INCOME OTHER
Go to the Budgets menu
E F 6 H I J
61
62
63
64
65
66 AQUACULTURE
67 BUDGETING AND FINANCIAL STATEMENT ANALYSIS
68
69
70 IN YEAR: 19
71 L -.--J
72 FOR: CATFISH, INC.
73
74
75
76 Developed in cooperation with Florida Sea Grant by:
77 Computer Related Services (FARMLab), Food & Resource Economics Dept
78 Cooperative Extension Service
79 Institute of Food and Agricultural Sciences
80 University of Florida

When the STATEMENTS menu reappears at the top of the monitor (see
Figure 21), you are ready to select any of the sub-options.

FIGURE 21. STATEMENTS Menu Screen
BUDGETS RECOVERY LOANS START BAL. CASHFLOW ENDING BAL. INCOME OTHER
Go to the Budgets menu
E F G H I J
61
62
63
64
65
66 AQUACULTURE
67 BUDGETING AND FINANCIAL STATEMENT ANALYSIS
68
69
70 IN YEAR: 197
71
72 FOR: CATFISH. INC.
73
74
75
76 Developed in cooperation with Florida Sea Grant by:
77 Computer Related Services (FARMLab), Food and Resource Economics Dept.
78 Cooperative Extension Service
79 Institute of Food and Agricultural Sciences
80 University of Florida

The sub-options found in the STATEMENTS menu often pass user
supplied and program generated information among themselves. For
example, information provided by the user in the BUDGETS and RECOVERY
sup-options will be passed on for use in CASHFLOW and other sub-options.
Thus, the user is advised to proceed through the STATEMENTS sub-option
in the order suggested by the STATEMENTS menu (i.e. BUDGETS, RECOVERY,
LOANS, etc.).

BUDGETS:

The BUDGETS option lets the user develop enterprise budgets for
a given aquacultural operation. The user has the ability to develop
budgets for five different species or enterprises if necessary. Budgets
produced by this option will generate an estimate of returns over
variable expense, while providing the user an opportunity to schedule
returns and expenses on a monthly basis. The revenues and expenses
from these five possible budgets are summed and automatically carried
over into later statements, such as cashflow and income. Each fish
crop budget does not have separate cashflows, balance sheets, etc.
For this, the user would need to execute AQUADEC for each fish crop
exclusively.

Figure 22 shows a sample of a "fish crop" budget. Note that the
budget contains production revenue (i.e. line 43) and operating expense
estimates (i.e. lines 46-58). These in turn yield an estimate of net
returns (i.e. line 60) for the specific crop.

FIGURE 22. Sample Fish Crop Budget Option

T U V W X Y Z AA AB
41 FISH CROP #1 Total Ponds Un. /Pond /Unit JAN FEB MAR
42 --- --- --
43 Catfish (5-ac. pds.)| 81,250 10 lb 8125 0.65
44
45 OPERATING EXPENSESs Ponds Un5./Pond S/Unit
46 Labor hired $6,120 10 hrs 12 4.00
47 Repairs machinery $3,911 10 */1 391 1.00
48 Repairs Impr/Bldg $1,000 10 S/s 100 1.00
49 Rent/leases $0 10 I/* 0 1.00
50 Fingerlings/P.Larvae $1,000 10 lbs 100 2.00
51 Fertilizer & lime $1,000 10 lbs 100 0.50
52 Chemicals $3,500 10 gal 350 1.00
53 Custom machine hire $500 10 hrs 50 10.00
54 Feed/Supplies $16,500 10 ton 1650 0.15 1000 1000
55 Storage & Freeze 0s 10 $/$ 0 1.00
56 Gas, fuel, oil $235 10 gal 24 0.98 2 2 2
57 Mktg & trans. exp. $0 10 $/$ 0 1.00
58 Other $10,600 10 $/5 1060 0.08 13250
59 TOTAL EXPENSE $44,366 $4,437
60 NET RETURNS-CROP #1 $36,884 $3,688

The total revenue, total expense, and net returns, as well as the
corresponding monthly values, are used elsewhere in other financial
statements.

To complete an enterprise fish crop budget, the user must first
decide on the units of production and expense, and whether these items
will be entered on a total facility basis or on a per pond, tank, etc.
basis. The boxes in Figure 22 indicate where the user must enter data.
These boxes will not appear on the monitor screen during actual
operation, but have been added for illustrative purposes. The heading
boxes allow a good deal of flexibility in terms of budget units. For
example, the user enters the species type, the number of ponds, the
units that the price applies to, the per unit price, and the monthly
production estimate per pond. To move over to the monthly columns
press a null return. The production and price must be in the same
units. If a price is used, the price is assumed constant from January
to December. However, the price may need to vary. If so, the user
may simply enter a price of $1 and then enter a revenue value in each
month which may change as price changes. This is one example of the
flexibility of use allowed by AQUADEC. The same logic is used for
expenses in the lower part of the budget.

The expense data is associated with the production information
that you entered earlier. The expense categories used in this budget
are similar to the IRS Schedule F used for agricultural income tax
purposes. The user may enter any unit name that is appropriate.
However, AQUADEC will truncate the name to ten characters so it is
advisable to use abbreviations. For example, you may want to enter
the units for labor hired as dollars per hour per pond. This could
be abbreviated to $/hr/pnd. Enter the number of hours per pond under
the monthly columns and enter dollars per hour under the "$/Unit" column.
Using this method, line 54 of Figure 22 would indicate that in February
and March, 1000 pounds of feed were used for one pond and the price
was $0.15 per pound.

You will notice that as you make new entries and changes to this
worksheet the values are not automatically recalculated. This has
been done for the sake of speed. Each recalculation takes about 20
seconds. If you are entering several values the time delay would become
intolerable. After you have made all the changes to your worksheet
press a null return to return to the STATEMENTS menu. Select the last
option, OTHER, and then select the Calc option. Press to choose
the Manual calculation and all your worksheets within STATEMENTS will
be recalculated. Sensitivity analysis can be done by choosing the
Automatic option, which will recalculate the analysis each time a new
entry is made. Advanced users who find this particular menu method
cumbersome, should refer to the section labeled "Miscellaneous Notes".

A sample enterprise budget using the Fish Crop #1 option is shown
in Figure 23. Fish Crop #2 through Fish Crop #5 options operate iden-
tically. The user enters unit descriptions in the cells for row 41
and columns V and X. In this example, the units are "Ponds" for column
V and "$/Pond" for column X. The user then enters a description of
the species being produced (i.e. catfish in column T) and values in
the "Ponds" and "$/Unit" columns. Column Y, "$/Unit", refers to the
price received per the unit specified in column W, row 43. In this
example, ten ponds (column V) are utilized and the price is $.65 (column
Y) per pound (column W) of catfish (column T) produced. The units
defined in column W are "lbs." and refers to the units of measurement
for the values entered in the monthly columns. To move to the monthly
columns, press a null return. Column X, "$/Pond" is calculated by the
computer by summing up the monthly totals and multiplying by the price.
Given the assumptions in this example, the value in column X represents
the total revenues per pond. This value is then multiplied by the
total number of ponds to arrive at the value computed in column U.

FIGURE 23. Sample Fish Crop Budget Analysis

T U V W X Y AS AC AD
41 FISH CROP *1 Total Ponds Un.S/Pond $/Unit MAR APR MAY
42
43 Catfish (5-ac. pds.) $81,250 10 lbs 8125 0.65
44
45 OPERATING EXPENSES: Ponds Un.$/Pond S/Unit QUANTITY
46 Labor hired *6,120 10 hrs 612 4.00 18 18
47 Repairs machinery $3,911 10 $S/ 391 1.00 30
48 Repairs Impr/Bldg $1,000 10 */S 100 1.00
49 Rent/leases $0 10 0/s 0 1.00
50 Fingerlings/P.Larvae $1,000 10 lbs 100 2.00 50
51 Fertilizer & lime $1,000 10 lbs 100 0.50 200
52 Chemicals $3,500 10 gal 350 1.00
53 Custom machine hire $500 10 hrs 50 10.00
54 Feed/Supplies $16,500 10 ton 1650 0.15 1000 1000 1000
55 Storage & Freeze $0 10 $/$ 0 1.00
56 Gas, fuel, oil $235 10 gal 24 0.98 2 2 2
57 Mktg & trans. exp. $0 10 $/$ 0 1.00
58 Other $10,600 10 S*/ 1060 0.08 13250
59 TOTAL EXPENSE $44,366 *4,437
60 NET RETURNS-CROP 01 $36,884 $3,688

The logic for the operating expense section of the budget is the
same as for the revenue section. For example, Line 51 of Figure 23
reads: in April 200 pounds of fertilizer were purchased per pond.
Each pound of fertilizer cost $0.50, therefore the cost per pond was
$100 (note that the computer rounds expense estimates to the nearest
dollar). There were ten ponds, so the total facility expense for ferti-
lizer in April was $1000. Total fish crop expense and net returns
are shown in lines 59 and 60, respectively. Column U reflects values
based on the total number of ponds used, while column X reflects values
on a per pond basis. Remember that column X is only valid if every
monthly quantity value is entered in units per pond.

RECOVERY:

The RECOVERY option lets you calculate depreciation for machinery,
equipment, broodstock, buildings, and farm improvements based on the
Modified Accelerated Cost Recovery System (MACRS). There are two methods
for computing depreciation under the MACRS.

For this decision tool these methods have been assigned a number.
Method "1" is the straight-line method and "2" is the accelerated option.
The life categories for the accelerated method are 3,5,7,10,15 and
20 years. AQUADEC will force your property life to the closest younger
life category.

For example, if you enter a life of 8 years it will calculate
ACR (depreciation) for 7 year property. For a more detailed explanation
of the MACRS refer to the current "Farmers Tax Guide" published by
the Internal Revenue Service (Publication 225).

Three options are available for the RECOVERY tool. These are
shown as menu choices on your monitor when you select the RECOVERY
option from the STATEMENTS menu (see Figure 24). The
Machinery/Equipment, Broodstock, and Buildings/Improvements options
require similar information.

The user will enter the name of the item to be depreciated, the
month and year in which the asset was purchased, the useful life or
life category, the original purchase price, the market value at the
end of the budget year, and the MACRS method number "1" or "2".

If several species (i.e. more than one fish crop budget) are used
for a given AQUADEC execution, the various RECOVERY sub-options
collectively apply to all species.

FIGURE 24. RECOVERY Menu Screen

MACHINERY/EQUIPMENT BROOD STOCK SUILDINGS/IMPMOVEMENTS (Levees) Return

E F H I J
61
62
63
64
65
66 A 0 UACULTURE
47 BUDGETING AND FINANCIAL STATEMENT ANALYSIS
68
69
70 IN YEARs 1987
71
72 FOR: CATFISH, INC.
73
74
75
76 Developed in cooperation with Florida Sea Grant by:
77 Computer Related Services (FARMLab), Food & Resource Economics Dept
78 Cooperative Extension Service
79 Institute of Food and Agricultural Sciences
80 Utniverity of Florida

Figure 25 shows a sample screen from the Machinery/Equipment
worksheet. Notice that the computer will calculate the ACR, or
depreciation, to be claimed for the budget year and the accumulated
ACR. Note that the budget year is the year you selected when first
entering the STATEMENTS option.

Up to 30 items can be entered on this worksheet. To allow more
items to be entered you may group assets purchased in the same year
that have the same useful life together as one entry. Press a null
return to view the remaining 15 items on the worksheet.

FIGURE 25. Sample Machinery/Equipment Option

AO AP AD AR AS AT AU
COST RECOVERY

AV AW

MACHINERY/EQUIPMENT Purch. Purch. MKT ACR ACR ACCUM
Num NAME Yr Mth Life Price Value Meth 87 ACR

1 Feed Bin 82 6 10 2500 1000 1 357 1965
2 Mower 83 3 5 1725 1200 1 345 1553
3 Truck (1/2 ton) 81 8 10 7500 500 1 1072 6966
4 Dis. Oxy. Kit 84 3 5 40 30 1 8 28
5 Tractor (40 H.P.) 82 4 15 9800 8000 1 980 5390
6 Boat (12 ft) 82 5 15 375 200 1 38 206
7 Aerator 83 5 5 1300 1000 1 260 1170
8 Electric Motor 83 7 5 150 50 1 30 135
9 Battery 84 8 3 75 0 1 13 75
10 Battery Charger 82 6 5 35 0 1 4 35
11 Feed Wagon 82 10 15 4700 3500 1 470 2585
12 0 0
13 0 0
14 0 0
15 0 0

Figure 26 shows a sample screen from the Buildings/Improvements
worksheet. You can see that the same type of information is required
here as for the Machinery/Equipment worksheet. Up to 15 items can
be entered for buildings and land improvements. Allowable land
improvements could be capitalized and entered into the
Buildings/Improvement category. Though not shown, the Brood Stock option
follows the same logic for any breeding stock which might be capitalized.

FIGURE 26. Sample Buildings/Improvements Option

AM AN AO AP AO AR AS AT AU AV AW
61 COST RECOVERY
62 BLDGs/IMPRV.(-levee) Purch. Purch. MKT ACR ACR ACCUM
63 Num NAME Yr Mth Life Price Value Moth 87 ACR
64 -
65 46 Pond Levees 80 1 20 5000 3000 1 250 1875
66 47 0 0
67 48 0 0
68 49 0 0
69 50 0 0
70 51 0 0
71 52 0 0
72 53 0 0
73 54 0 0
74 55 0 0
75 56 0 0
76 57 0 0
77 58 0 0
78 59 0 0
79 60 __ 0 0
80 TOTAL BUILDINGS/IMPROVEMENTS 5000 3000 250 1875

Remember that these worksheets will not automatically recalculate
each time a value is entered. Use the Calc facility under the OTHER
option of the STATEMENTS menu to recalculate the worksheets. The Recov-
ery/Depreciation tools are designed to aid in decision making and are
not suitable for income tax purposes.

LOANS:

The LOANS option calculates loan schedules for amortized and unamor-
tized loans. The information generated with the LOANS option is used
for the starting and ending balance sheets. Because the amortized
loan schedule is the easiest to understand we will discuss that schedule
first.

The amortized schedule calculates equal monthly payments for a
loan when the following information is provided: the name of the item
that the loan is for, the month and year the item was purchased, the
purchase price, the annual interest rate of the loan, and the life
of the loan in months. The monthly payment and the beginning principal
due for the budget year will be calculated and displayed (see Figure
27). The ending principal for the current budget year and for the
next year are also calculated. To view these two additional columns
see Appendix A. Up to ten intermediate loans and three long-term loans
can be evaluated. The user should note that only those loans currently
active during the object year of the analysis should be included.

FIGURE 27. Sample Amortized Intermediate Loan Option

AX AY AZ BA
1 AMORTIZED INTERMEDIATE LOANS

BB BC BD BE

RATE

LIFE

* NAME YR MTH AMOUNT (%) nths

1 Feed Bin 82 6 $25,000 16.00% 24
2 Mower 83 3 $1,725 16.00% 24
3 Truck (1/2 ton)B1 8 $7,500 14.50% 36
4 Dis. Oxy Kit 84 3 $40 16.00% 24
5 Tractor 82 4 *9,800 14.50% 36
6 Boat (12 ft) 82 5 $375 14.50% 36
7 Aerator 83 5 $1,300 14.50% 36
8 Electric Motor 83 7 $150 16.00% 24
9 Battery/Chrgr 84 8 $110 16.00% 24
10 Feed Wagon 82 10 $4,700 14.50% 36
SU3TOTAL
LONG-TERM LOANS
1 POND CONST. 80 1 $5,000 12.00% 360

SUBTOTAL
TOTAL

BF 85 BH
MONTHLY BEG.PRIN ENDING
PAYMENT 1987 1987

1224 0 0
84 0 0
258 0 0
2 0 0
337 0 0
13 0 0
45 0 0
7 0 0
5 0 0
162 0 0
2138 0 0

51
0
0
51
2190

4813
0
0
4813
4813

4775
0
0
4775
4775

The unamortized loan schedule is a bit more complicated than the
amortized loan schedule. You are allowed to analyze three loans, two
intermediate and one long-term. See Figure 28 for a sample of an
unamortized loan intermediate analysis.

FIGURE 28. Sample Unamortized Intermediate Loan Analysis Option

BJ BK BL BM BN 0B BP
1 Intermediate loan 1
2 Loan number: 1 If loan initiated this yar.
3 Name of Loans County PCA which month ?i 0
4 Interest Rt.s 12.00% PCA Stock (%) 10%
5 Actual PCA Rts 13.337. Prin. Remain.: 10,000
6 12 Mths Amortization= 17 Prev. Int.Due: L 10 500
7 MTH Ending Payments Curr. nt. AcInt. Principal ENDING BAL.
9 - -- -- - - -- --
9 1 0 128 1,628 10,000 11,628
10 2 0 147 1,775 10,000 11,775
11 3 0 151 1,926 10,000 11,926
12 4 0 154 2,080 10,000 12,080
13 5 0 157 2,237 10,000 12,237
14 6 0 161 2,398 10,000 12,398
15 7 0 164 2,562 10,000 12,562
16 8 0 168 2,730 10,000 12,730
17 9 5,000 172 0 7,902 7,902
18 10 0 s8 88 7,902 7,990
19 11 0 90 178 7,902 8,079
20 12 0 92 269 7,902 8,171

For each type of loan you will need to enter the name of the loan,
the annual interest rate, the month the loan was initiated if it was
in the current budget year, the percent of stock required, the principal
outstanding at the beginning of the current budget year, and the accrued
interest due at the beginning of the current budget year. If the loan
was initiated prior to the current budget year enter a zero for the
initiated month. Any payment made during the budget year should be
entered next to the month in which it was paid. You may also determine
the size of payments using a specific number of months in cell BJ6
(see Figure 28).

START BAL:

The START BAL option calculates the beginning cost basis balance
sheet. The user will find the market value balance sheet described
later in this manual. AQUADEC fills in the majority of the balance
sheet using values calculated in other schedules within STATEMENTS.
The user is responsible for supplying values in high intensity or color
contrasting cells.

The balance sheet is divided into two screens. The first screen,
illustrated by Figure 29, records current assets and current liabil-
ities. The boxes drawn in Figure 29 represent the values that the
user must supply.

FIGURE 29. Sample START BAL Option (First Screen)

BALANCE SHEET- DECEMBER 31,

ASSETS

1986

LIABILITIES

CURRENT ASSETS 1 DEBIT I CURRENT LIABILITIES I CREDIT

CASH (checking...) 2,387 I ACCOUNTS PAY. I 1,00
SAVINGS ACCT/TIME CERT 5,000 OPERATING LOAN 1 10,000
OTHER CASH ASSET(cashflow): 2,000 ACCRUED INT. (Oper.Ln)I O
NOTES & ACCTS RECEIVABLE I 500 INTMED. LOANS (Due 12mo) 0
PURCHASED STOCK (expensed)I 0I LONG-TERM LNS (Due 12oM): 38
PRODUCED STOCK INVENTORY 0 REAL ESTATE TAX LIAB. I 900
SUPPLIES/FEED INVENTORY I 2,000 I RENT & LEASE PAYMENTS 11
OTHER CURRENT ASSETS 1 0 OTHER I 0
TOTAL CURRENT ASSETS 11,887 TOTAL CURRENT LIAB. 12,438
TOTAL CURRENT ASSETS 1 11,897 I TOTAL CURRENT LIAB. 1 12,438

The second screen of the
mediate and fixed assets and
(see Figure 30). To get to the
while viewing the first screen.

beginning balance sheet records inter-
intermediate and long-term liabilities
second screen simply press a null return

FIGURE 30. Sample START BAL Option (Second Screen)

A B C D
21-
22 INTERIM. & FIXED ASSETS I DEBIT IINTERM. & LONG TERM LIAB.I CREDIT
23 I I ---
24 MACHINERY EQUIP (CR Sch.) 1 11 668 I NOTES PAYABLE I 1tol
25 BROOD STOCK (CR Sch.) I I INTERMEDIATE LOANS I 11 500
26 RETIREMENT ACCTS. I 0 OTHER INTERMEDIATE LIAB. I
27 OTHER INTERM. ASSETS I 0 1----------- -------- -
28 ---- ----------- ------- TOTAL INTERMEDIATE LIAB.I 11,600
29 TOTAL INTERMEDIATE ASSETS 11,668 I -
30 ----------------- I LONG TERM LOANS 4775
31 NOTES RECEIVABLE 0 OTHER LONG TERM LIAB. | 6
32 LAND (cost:non-depr.) ----
33 BUILD./IMPROVE. (CR Sch.) 1 3375 TOTAL LONG TERM LIAB. 4,775
34 OTHER FIXED ASSETS 1I 0 -------------- ----
35 --- -- -------------- ---- I------ TOTAL LIABILITIES I 28,813
36 TOTAL FIXED ASSETS 1 3,375 I NET WORTH (1,883)
37----------------- I ------I I -
38 TOTAL ASSETS I 26,930 I NET WORTH + LIABILITIES : 26,930
39
40-----------------------

The beginning balance sheet is a much abbreviated version of the
actual balance sheet that would be done for a lending institution in
the compilation of a complete investment prospectus. The idea here
was to keep the sheet as small as possible while retaining the essence
of the balance sheet. For a complete discussion on balance sheets
and income statements for the farm refer to Frey and Klinefelter,
"Coordinated Financial Statements For Agriculture." [3]

CASHFLOW:

The CASHFLOW option generates a month-by-month detailed cashflow
for the budget year. This option is divided into three screens and,
as with the beginning balance sheet, only the high intensity or color
contrasting cells accept the data. Use the right and left arrows to
scroll the month columns from Jan to Dec.

The first screen, as shown by Figure 31, requests the minimum
beginning cash balance. The remainder of the sheet contains information
on operating receipts and other cash inflows and calculates the total
cash available. Again, the boxes have been drawn to illustrate which
pieces of information the user must enter. These boxes will not appear
on the actual monitor display.

FIGURE 31. Sample CASHFLOW Option (First Screen)

E F 6 H I J.
CASH FLOW STATEMENT Ninimum Beg. Cash Balance 5000
TOTAL JAN FEB MAR APR

Beginning Cash Balance
OPERATING RECEIPTSz
Fish Crops
Reserved
Custom work
Govt. payments
Other Cash Asset(cashflow)
OTHER INFLOWSi
Brood Stock Sales
Mach,Bld,Land Sale(sub.BV)
New Loans
Owner Contributions
Interest Income
Inflows from savings

TOTAL CASH INFLOW
OPERATING EXPENSESs

2,387 2387 5000 5000 5000

81,250
0
50
0
0

0
0
0
0
0
0
O
so
O
o

O
O
O
O
0
O

o 0 0 0
0 0 0 0
0 0 0 0

0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
10 ___0 ___0 0___

83,687 2387 5000 5000 5000
TOTAL JAN FEB MAR APR

The second screen, shown by Figure 32, contains information per-
taining to operating expenses and calculates the total cash required
to meet operating expenses.

FIGURE 32. Sample CASHFLOW Option (Second Screen)

E
OPERATING EXPENSES
Labor hired
Repairs machinery
Repairs Impr/Bldgs/Levee
Rent/leases
Fingerlings/P.Larvae
Fertilizer & lime
Chemicals
Custom machine hire
Feed/Supplies
Storage & Freeze
Gas, fuel, oil
Marketing & trans. expense
Other
Reserved
Taxes (RE & Property)
Insurance
Utilities
Other (unallocated)
TOTAL CASH OPERATING EXP.

F
TOTAL
6,120
3,911
1,000
0
1,000
1,000
3,500
500
16,500
0
235
0
10,600
0
900
0
965
0
46,231

6 H I J
JAN FEB MAR APR
0 0 0 720
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 1000
0 0 0 1000
0 0 0 0
0 0 0 0
0 1500 1500 1500
0 0 0 0
20 20 20 20
0 0 0 0
0 0 10600 0
0 0 0 0
0 0 0 0
0 0 0 0
80 75 80 60
0 0 0 0
100 1,595 12,200 4,300

The third screen, shown by Figure 33, calculates information for
purchases and other outflows and calculates the total cash require-
ments. In addition, loan activity is recorded, including new borrowing
and principal and interest payments on operating loans.

FIGURE 33. Sample CASHFLOW Option (Third Screen)

E
PURCHASES & OTHER OUTFLOWS
Purchased Stock expensee)
Machinery & equipment
Brood Stock (capitalized)
Buildings & improvements
Land purchases
Other Cash Asset(cashflow)
Owner withdrawals
Outflows to savings
Outflows to retirement acc
Inter & Long Term Loan Pay
TOTAL CASH OUTFLOW
Ending cash bal. w/o loan
OPERATING LOAN:
Operating loans needed
Interest pay. (oper. loan)
Principal pay.(oper. loan)
Ending cash balance
ACCRUED INTEREST (Beg Mth.)
OPERATING LOAN BALANCE (End

F
TOTAL
0
0
0
0
0
0
0
0
0
16,498
62,729

61,060
5,696
71,060
5262

Mth.)

6 H I J
JAN FEB MAR APR

I 0
0
0
0
0
0
0
0
2190
2,289
98
Interest
4902
0
0
5000
0
14902

0
0
0
0
0
0
0
0
0
2190
3,784
1216
%X
3784
0
0
5000
192
18686

0
0
0
0
0
0
0
0
0
2103
14,303
-9303
15.45V.
14303
0
0
5000
432
32989

0
0
0
0
0
0
0
0
0
1766
6,065
-1065

6065
0
0
5000
857
39055

ENDING BAL:

The ENDING BAL option is identical to the START BAL option except,
of course, that it is for the end of the budget year. Because of this
the user will enter even less information than for the beginning balance
sheet. Figures 34 and 35 show the first and second screens of the
ending balance sheet. As before, the boxes illustrate the values that
the user supplies.

FIGURE 34. Sample ENDING BAL Option (First Screen)

BALANCE SHEET -DECEMBER 31,

1987

ASSETS LIABILITIES

CURRENT ASSETS DEBIT I CURRENT LIABILITIES I CREDIT

CASH (checking...) 5,262 1 ACCOUNTS PAY. 1,500
SAVINGS ACCT/TIME CERT 5,000 I OPERATING LOAN 12mns. 1 0
OTHER CASH ASSET(cashflow)1 2,000 I ACCRUED INT. (Oper.Ln) 0
NOTES & ACCTS RECEIVABLE 1 500 I INTMED. LOANS (Due 12mo)l 0
PURCHASED STOCK expensee) 0 LONG-TERM LNS (Due 12mo)l 47
PRODUCED STOCK INVENTORY 0 REAL ESTATE TAX LIAB. I 900
SUPPLIES/FEED INVENTORY 1,500 RENT & LEASE PAYMENTS 1 0
OTHER CURRENT ASSETS 0 OTHER CURRENT LIABILITY. 0
TOTAL CURRENT ASSETS 14,262 TOTAL CURRENT LIAB. 2,447
TOTAL CURRENT ASSETS 14,262 1 TOTAL CURRENT LIAB. 1 2,447
---------------------------~,~--~ ,

FIGURE 35. Sample ENDING BAL Option (Second Screen)

A B C D
61
62 INTERN. & FIXED ASSETS I DEBIT IINTERM. & LONG TERM LIAB.1 CREDIT
63 : : I----
64 MACHINERY EQUIP (CR Sch.) 1 8,093 1 NOTES PAYABLE 1 200]
65 BREEDING STOCK (CR Sch.) 0 1 INTERMEDIATE LOANS I 8171
66 RETIREMENT ACCTS. I 0 I OTHER INTERMEDIATE LIAB. 1 '0
67 OTHER INTERM. ASSETS I ----------------------
68 --- --------- ------ TOTAL INTERMEDIATE LIAB.1 8,371
69 TOTAL INTERMEDIATE ASSETS: 8,093 ---- 1
70 -------------------------- LONG TERM LOANS 4728
71 NOTES RECEIVABLE I 1,0 olI OTHER LONG TERM LIAB. I 0
72 LAND (cost:non-depr.) 1 0 ----------- I
73 BUILD./IMPROVE. (CR Sch.) 1 3,125 TOTAL LONG TERM LIAB. 4,728
74 OTHER FIXED ASSETS I -------- ------- ----
75 ----------------------------I TOTAL LIABILITIES 15,546
76 TOTAL FIXED ASSETS 1 4,125 1 NET WORTH 10,933
77 TOA--- I.. .2648 E IBLTE -24
78 TOTAL ASSETS I 6,480 NET WORTH + LIABILITIES I 26,480
79
80

INCOME:

The INCOME option constructs an income statement, which links
the beginning and ending balance sheets together. The income statement
requires two screens as shown by Figures 36 and 37 below.

FIGURE 36. Sample INCOME Option (First Screen)

E
INCOME STATEMENT- FOR YEAR

REVENUES

FISH CROPS
cash sales
inventory change

F
1987

6 H I J

Accrual Cash

81,250
0

CAPITAL SALES
Brood Stock
Mach,Bld,Land Sale (net of BV)

CUSTOM WORK: CASH
GOVT. PAYMENTS
INTEREST (Sav,Retire) INCOME
OTHER
ADJUSTMENTS IN RECEIVABLES

81,250

81,250

0 0

50
0
0
I 010
1,000

50
0
0
0
N/A

FIGURE 37. Sample INCOME Option (Second Screen)

GROSS
1--
less
less
VALUE
less
less
GROSS

E F
REVENUE
purchased stock expensee)
feed expense
OF PRODUCTION
CASH OPER EXPS (cashflow sch.)
INTEREST EXPENSE
MARGIN

OTHER EXPENSES
ASSET ADJ. (sup.,prepaids,& other)
PAYABLES ADJ. (taxes,rent,payroll)
COST RECOVERYs
Machinery & equip.
Brood Stock
Buildings/Improvements/Levees

NET It

6 H I J
82,300 81,300
0 0
(0) (0)
82,300 81,300
(46,231)(46,231)
(18,827)(20,057)
17,242 15,011

(500) N/A
(100) N/A

3,576
0
250

(3,826)

12816

COME

(3,826)

11186
""" ""

Because most of the information for the income statement comes
from other schedules the user is confronted with only one empty cell,
the category "OTHER". Whatever value the user is tempted to enter
at this location, should be examined carefully. Most likely it belongs
in a previous schedule, thus maintaining the income statement link
between the balance sheets.

101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120

OTHER:

The OTHER option on the STATEMENT menu includes several sub-options
and functions. These options and functions are displayed by the menu,
as illustrated by Figure 38, and include the market value balance sheet
(Market), the statement of owner's equity (Equity), financial ratio
analysis (Financial), a menu to print or display graphs (Graphs), a
mode of recalculation selector (Calc), a menu to print hard copies
of schedules and analyses (Print), and an option to save all the STATE-
MENTS worksheets with the numbers you have most recently entered (Save/-
Exit/Year).

FIGURE 38. OTHER Menu Screen

MARKET EQUITY FINANCIAL GRAPH CALC PRINT SAVE/EXIT/YEAR Return
Look at the market value balance sheets
E F 6 H I J
61
62
63
64
65
66 AQUACULTURE
67 BUDGETING AND FINANCIAL STATEMENT ANALYSIS
68
69
70 IN YEAR: 1987
71
72 FOR: CATFISH, INC.
73
74
75
76 Developed in cooperation with Florida Sea Grant by:
77 Computer Related Services (FARMLab), Food & Resource Economics Dept
78 Cooperative Extension Service
79 Institute of Food and Agricultural Sciences
80 University of Florida

Market The first selection on the OTHER menu is Market. Market
calculates beginning and ending market value balance sheets. There
are major differences between the market value balance sheet and the
cost basis balance sheet. The user enters the value in the market
value balance sheet that land and other capital assets are expected
to bring on the open market. The user should be aware that a contingent
tax liability may exist on marketable assets like machinery, breeding
stock, land, and buildings when they are sold. The user is responsible
for assessing this tax liability. The market value balance sheets are
shown by Figure 39.

FIGURE 39.

Sample MARKET Option

A B C D
MARKET VALUE BALANCE SHEETS
(includes market values of machinery, breeding stock, land, buildings)
SIf liquidated, gains above book-value will create tax liability.

BEGINNING BALANCE SHEET
Current Assets
Intermediate Assets
Land (market value)
Blds/Impr/Levee
TOTAL Assets

ENDING BALANCE SHEET
Current Assets
Intermediate Assets
Land (market value)
Blds/Impr/Levee
TOTAL Assets

11887 Current Liabilities
15480 Intermediate Liabilities
1 00001 Long Term Liabilities
3000 TOTAL Liabilities
80367 NET WORTH (MKT value)

NET WORTH (TAX value)

14262 Current Liabilities
15480 Intermediate Liabilities
50000 Long Term Liabilities
4000 TOTAL Liabilities
83742 NET WORTH (MKT value)

NET WORTH (TAX value)

Equity The second selection on the OTHER menu is Equity. Equity
computes both the tax (book) value net worth and the market value net
worth (see Figure 40). All values for the statement of owner equity
come from the balance sheets and income statement, the user does not
need to enter any values.

FIGURE 40. Sample EQUITY Option

A B
STATEMENT OF

C
ONNER E U I TY

BEG NET WORTH (TAX Value)

ADD:

OWNER CONTRIBUTIONS
NET INCOME

LESS:
OWNER WITHDRAWALS

EQUALS

END. NET WORTH (TAX Value)

(1,883): BEG NET WORTH(TAX Value)

t ADDI

$0
$12,816 I

$0I

$10,933

$10,933 I

OWNER CONTRIBUTIONS
NET INCOME
MARKET VALUE ADJUSTMENTS
MACHINERY & EQUIPMENT
BREEDING STOCK
LAND
BLDGS/IMPR/LEVEES
LESS:
OWNER WITHDRAWALS

EQUALS

END NET WORTH(Mkt Value)

12438
11600
4775
28813
51554

-1883

2447
8371
4728
15546
68196

10933

($1,883)

$0
$12,816

$7,388
$0
$50,000
($125)

$0

$68,196

$68,196

__ ___ _~~~ ______

_________~___I_ ______~_~_~I _____I__ _I_

Financial The third choice on the OTHER menu is Financial which
calculates liquidity, solvency, profitability, and financial efficiency
ratios. All financial ratios are based on market values. Figure 41
shows an example of the financial ratio analysis. The N/A means "not
available". Because all the values needed to calculate the ratios
come from the balance sheets and income statements, the user does not
need to enter any values.

FIGURE 41. Sample FINANCIAL Analysis Option

FINANCIAL RATIOS

CURRENT RATIO
CURRENT DEBT

LEVERAGE RATIO
NET CAPITAL RATIO
EQUITY-VALUE RATIC

RETURN ON EQUITY
RETURN ON INVSTMT

GROSS RATIO
TURNOVER RATIO
DEBT SERVICING
EXPENSE STRUCTURE

AO AP AQ AR AS AT AU AV AN

sing market values)
LIQUIDITY

* Current Assets/Current Liab
- Current Liab./Total Liab.

SOLVENCY
- Total Liab./Net Worth
- Total Assets/Total Liab.
) Net North/Total Assets

PROFITABILITY
= NET INCOME / NET WORTH
* Income Interest/Total Assets

FINANCIAL EFFICIENCY
* Operating Exp/Value Production
- Value Production/Total Assets
- Loan Payments/Value Production
- Loan Pay./Loan Pay. + Oper Exp

BEG.
= 0.96
* 0.43

- 0.56
* 2.79
* 0.64

ENDING
5.83
0.16

0.23
5.39
0.81

Graph The next choice on the OTHER menu is Graph. This option
draws graphs on the monitor. A graphics monitor and printer are required
for this option. If you have a nongraphics monitor and select this
option, the computer will simply beep and return you to the menu.
The user can select any of the graphs from the Graph submenu (see Figure
42).

FIGURE 42. GRAPH Menu Screen

CASHFLOW BALANCE
Show this Graph
E

INCOME CURRENT LEVERAGE PROFIT EFFICIENCY

Return

G H I J

AQUACULTURE
BUDGETING AND FINANCIAL STATEMENT ANALYSIS

IN YEAR: 1987

FOR: CATFISH, INC.

Developed in cooperation with Florida Sea Grant by:
Computer Related Services (FARMLab), Food & Resource Economics Dept
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida

- 0.22 N/A
- -0.11 N/A

DURING
- N/A 0.57
= N/A 1.01
= N/A 1.15
- N/A 0.67

(ul

Cashflow -

Balance -
Income -
Current -
Leverage -
Profit -

Efficiency

The graphs available are briefly described below:

graphs cash available, cash required and cash surplus
(deficit) on monthly basis.
graphs market value balance sheet data.
graphs accrual and cash income statement information.
graphs beginning and ending current ratios.
graphs beginning and ending leverage ratios.
graphs two profitability ratios, return on equity
and return on investment.
- graphs several financial efficiency ratios includ-
ing the gross ratio, turnover ratio, debt servic-
ing ratio and the expense structure ratio.

To print the graphs using a graphics printer and the PrintGraph facility
of Lotus, see the section labeled "Miscellaneous Notes".

Calc The fifth option on the OTHER menu is Calc.
the user select the mode of recalculation, either manual or
The manual setting is the default setting for the entire
worksheet.

Calc lets
automatic.
STATEMENTS

When the recalculation mode is set to "Manual" the worksheets
do not recalculate after a new entry has been made. To recalculate
the entire STATEMENTS worksheet takes approximately 20 seconds. When
several entries are to be made this waiting period can become a nuisance,
thus the recalculation mode has been set to "Manual". After you have
entered all your data into STATEMENTS, exit the current work section
and select the Calc option. The Calc menu selection briefly explains
the function of the "Manual" choice (see Figure 43). When you select
the "Manual" option, the entire STATEMENTS worksheet is recalculated.
You can now return to any STATEMENTS worksheet to view the results.
FIGURE 43. Calc Menu Screen

Manual Automatic Return
Calculate the worksheet NOW and turn off the AUTOMATIC recalculation.
E F 6 H I J

AQUACULTURE
BUDGETING AND FINANCIAL STATEMENT ANALYSIS

IN YEAR: 1987
FORs CATFISH, INC.

Developed in cooperation with Florida Sea Grant by:
Computer Related Services (FARMLab), Food & Resource Economics Dept
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida

If you decide that you want to immediately view the results of
any changes made in STATEMENTS, select the "Automatic" option. Now
each time an entry is made the entire STATEMENTS worksheet will automati-
cally be recalculated.

Print When you have entered all the relevant information for
STATEMENTS, you will want to print a hard copy of the results. This
can be accomplished by choosing the Print option from the OTHER menu.
As Figure 44 shows, you can print all the reports available or selec-
tively choose a single report. Samples of all the reports available
are provided in Appendix A.

FIGURE 44. Print Menu Screen

ALL CHOOSE Return
Print all the statements
E F 6 H I J
61
62
63
64
65
66 AQUACULTURE
67 BUDGETING AND FINANCIAL STATEMENT ANALYSIS
68
69
70 IN YEAR: 1987
71
72 FORt CATFISH, INC.
73
74
75
76 Developed in cooperation with Florida Sea Grant by:
77 Computer Related Services (FARMLab), Food & Resource Economics Dept
78 Cooperative Extension Service
79 Institute of Food and Agricultural Sciences
80 University of Florida

To selectively print reports, choose the "Choose" option. A menu
of reports will be displayed (see Figure 45). You can now select a
single report to be printed. You can print the cash flow analysis
(Cashflow), the commodity budgets (Budgets), the cost recovery schedules
(Recovery), the loan schedules (Loan), the beginning and ending cost
basis balance sheets (Sheets), the income statement (Income), or the
market value balance sheet, equity statement and financial ratios
(Market).

FIGURE 45. Choose Menu Screen

CASHFLOW BUDGETS RECOVERY(DEPR) LOANS SHEETS INCOME MARKET Return
Print the cashflow statement
E F 6 H I J
61
62
63
64
65
66 A UACULTURE
67 BUDGETING AND FINANCIAL STATEMENT ANALYSIS
68
69
70 IN YEARt 1987
71
72 FOR: CATFISH, INC.
73
74
75
76 Developed in cooperation with Florida Sea Grant by:
77 Computer Related Services (FARMLab), Food & Resource Economics Dept
78 Cooperative Extension Service
79 Institute of Food and Agricultural Sciences
80 University of Florida

Save/Exit/Year To exit the STATEMENTS decision tool select the
Save/Exit/Year option from the OTHER submenu. You have 5 options as
shown in Figure 46. These options are described below.

Cancel return to the OTHER submenu,.no action taken.

Save Only save the most recently entered data and return
to the OTHER submenu.

Save & Exit save the most recently entered data and return
to the Main Menu.

Exit Only -

Year/Name -

do not save any changes and return to the Main
Menu (be cautious with this option).

change the year
for which the
and return to the

and name (personal, firm, etc.)
STATEMENTS information applies
STATEMENTS menu.

FIGURE 46. Save/Exit/Year Menu Screen

CANCEL SAVE ONLY SAVE & EXIT EXIT ONLY YEAR/NAME
Return to the previous menu
E F 6 H

I J

AQUACULTURE
BUDGETING AND FINANCIAL STATEMENT ANALYSIS

IN YEAR: 1987

FOR: CATFISH, INC.

Developed in cooperation with Florida Sea Grant by:
Computer Related Services (FARMLab), Food & Resource Economics Dept
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida

MISCELLANEOUS NOTES

Printing Graphs

Each of the graphs discussed in the STATEMENTS tool can be printed
using the Print/Graph program included with the Lotus program package,
provided the user has a graphics printer. To print graphs using the
most recently entered data you must first view the graphs using the
Graph option. This must be done even if you do not have a graphics
monitor, in which case the computer will just beep and the disk drive
activity light will come on for a few seconds. To actually print the
graphs, exit the AQUADEC program and select the Print/Graph option
from the main Lotus menu. When prompted remove the Lotus disk from
drive A and replace it with the Print/Graph disk.

From the Print/Graph menu choose the IMAGE-SELECT option. Follow
the instructions on the screen to mark the graphs that you would like
to print. Press the key when you are finished making your
selections. From the menu line select the GO option. The graphs will
now print. Samples of all the graphs available are provided in Appendix
B. To return to AQUADEC remove the Print/Graph disk from drive A and
replace it with the Lotus disk. Select the 1-2-3 option.

Advanced Lotus Users

A primary intent of the tools found in AQUADEC is to provide a
starting framework from which users may customize to better meet specific
needs and preferences. The person attempting to customize and/or
directly control the program should have advanced knowledge of Lotus,
especially concerning macros, menus, and range names.

As was mentioned earlier in the STATEMENTS section, it can be
cumbersome to choose manual calculation, since under the "Range Input"
the calc key only works while in edit. For advanced users, it
may be faster to break out of the macros ( ), at the time
you wish to calc and press . At this point you are in full control,
which will allow you to move anywhere including the protected cells,
so you need to be careful. Holding down the key and pressing
"M" will give control back to the macros and bring up the Main Menu.

Using the same is the starting point for customizing
the program. The macros serve as a kind of step by step documentation
along with the formulas used in the options and range names. Each
tool has the Lotus autoexecute macro "/0", which immediately gives
control to the program upon loading. Other useful facilities are the
single-step mode and the print formulas option (LOTUS has an option
under Print to get a listing of the formulas if needed). Whenever
modifications are made, be sure the named ranges still encompass the
desired area. The single-step mode will help pinpoint any problems
of this type.

Before attempting to make changes to your AQUADEC program, be
sure that you have at least one backup copy.

SUMMARY

AQUADEC provides a variety of tools for analyzing financial
decisions in aquaculture. Aquaculturists can use these tools as support
for their decisions and to provide documentation for their creditors.
Conversely, creditors can use AQUADEC to analyze loan applications,
especially through the use of the STATEMENTS tool. Although the tools
enhance the amount of information, analysis, and calculations that
can be done, the user should rely on personal experience, research,
and expertise when making the final investment or management decision.
Remember, AQUADEC is a decision support tool. The final decision rests
with you.

TECHNICAL SUPPORT

Should you need assistance in using AQUADEC, please contact the
IFAS Software Support Office. Phone (904) 392-7853 orwrite: IFAS
Software Support, Bldg. 120, Room 203, Gainesville, Florida 32611.

ORDERING INFORMATION

IFAS experts have developed this program and many others for
Florida's agricultural industries. If you would like to order a program
or request a free catalog, phone (904) 392-7853 or write: IFAS
Software Support, Bldg. 120, Room 203, Gainesville, Florida 32611.

REFERENCES

[1] Alderman, Rom and Susan Phillips. "FARMMGR: Farm Managers Decision
Support, Budgeting and Financial Statement Analysis." Florida
Cooperative Extension Service Circular 648. University of
Florida, Gainesville. January 1985.

[2] Beierlein, J.G., K.C. Schneeberger, and D.D. Osburn. Principles
of Agribusiness Management. Prentice-Hall, Englewood Cliffs,
N.J. 1986.

[3] Frey, Thomas L. and Klinefelter, Danny A. Coordinated Financial
Statements for Agriculture. 2nd Edition. Skokie, IL:
Agribusiness Publications. 1980.

[4] Internal Revenue Service. Farmers' Tax Guide. Publication 225.
Department of the Treasury. Rev. Oct. 1986.

[5] van Blokland, P.J. "Introducing the Cash Flow.", Extension Circular
No. 656. Florida Cooperative Extension Service, Institute
of Food and Agricultural Sciences, University of Florida,
Gainesville, FL. 1986.

[6] van Blokland, P.J. "Introducing the Balance Sheet." Extension
Circular No. 651. Florida Cooperative Extension Service,
Institute of Food and Agricultural Sciences. University
of Florida, Gainesville, FL. 1986.

[7] van Blokland, P.J. "Introducing the Income Statement." Extension
Circular No. 645. Florida Cooperative Extension Service,
Institute of Food and Agricultural Sciences. University
of Florida, Gainesville, FL. 1986

[8] van Blokland, P.J. "Introduction to Farm Business Analysis."
Extension Circular No. 655. Florida Cooperative Extension
Service, Institute of Food and Agricultural Sciences.
University of Florida, Gainesville, FL. 1986.

*LOTUS 1-2-3 is a trademark of Lotus Development Corporation, Inc.

APPENDIX A

CASH FLOW STATEMENT Minimua Beg. Cash Balance 5000
TOTAL JAN FEB MAR APR NAY JUN JUL AUG SEP OCT NOV DEC

inning Cash Balance 2,387 2387 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 6403

OPERATING RECEIPTS:
Fish Crops
Reserved
Custom work
6ovt. payments
Other Cash Asset(cashflow)
OTHER INFLOWS:
Brood Stock Sales
Hach,Bld,Land Sale(sub.BV)
New Loans
Owner Contributions
Interest Income
Inflows from savings

81,250 0 0 0 0 0 0 0 0 0 0 81250 0
0 0 0 0 0 0 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0 0 0 0 50 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 .0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH INFLOW 83,687 2387 5000 5000 5000 5000 5000 5000 5000 5000 5000 86300 6403
OPERATING EXPENSES: TOTAL JAN FEB HAR APR HAY JUN JUL AUG SEP OCT NOV BEC
Labor hired 6,120 0 0 0 720 720 720 860 860 720 720 800 0
Repairs machinery 3,911 0 0 0 0 300 621 200 700 500 820 770 0
Repairs lapr/Bldgs/Levee 1,000 0 0 0 0 0 0 0 0 0 0 0 1000
Rent/leases 0 0 0 0 0 0 0 0 0 0 0 0 0
Fingerlings/P.Larvae 1,000 0 0 0 1000 0 0 0 0 0 0 0 0
Fertilizer & line 1,000 0 0 0 1000 0 0 0 0 0 0 0 0
Chemicals 3,500 0 0 0 0 0 0 0 0 3500 0 0 0
Custoe machine hire 500 0 0 0 0 0 0 0 0 0 0 500 0
Feed/Supplies 16.500 0 1500 1500 1500 1500 1500 3000 3000 1500 1500 0 0
Storage & Freeze 0 0 0 0 0 0 0 0 0 0 0 0 0
Gas, fuel, oil 235 20 20 20 20 20 20 20 20 20 20 20 20
Marketing & trans. expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Other 10,600 0 0 10600 0 0 0 0 0 0 0 0 0
Reserved 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxes (RE I Property) 900 0 0 0 0 0 0 0 0 0 0 900 0
Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0
Utilities 965 80 75 80 60 70 60 80 90 100 100 100 70
Other (unallocated) 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH OPERATING EXP. 46,231 100 1,595 12,200 4,300 2,610 2,921 4,160 4,670 6,340 3,160 3,090 1,090
PURCHASES & OTHER OUTFLOWS TOTAL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Purchased Stock expensedd) 0 0 0 0 0 0 0 0 0 0 0 0 0
Machinery & equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Brood Stock (capitalized) 0 0 0 0 0 0 0 0 0 0 0 0 0
Buildings t improvements 0 0 0 0 0 0 0 0 0 0 0 0 0
Land purchases 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Cash Asset(cashflow) 0 0 0 0 0 0 0 0 0 0 0 0 0
Owner withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0
Outflows to savings 0 0 0 0 0 0 0 0 0 0 0 0 0
Outflows to retirement acc 0 0 0 0 0 0 0 0 0 0 0 0 0
Inter & Long Term Loan Pay 16,498 2190 2190 2103 1766 1700 484 477 213 5213 51 51 51
TOTAL CASH OUTFLOW 62,729 2,289 3,784 14,303 6,065 4,318 3,405 4,636 4,883 11,553 3,211 3,141 1,141
Ending cash bal. /to loan 98 1216 -9303 -1065 682 1595 364 117 -6553 1789 83159 5262
OPERATIN6 LOAN: Interest 1: 15.451
Operating loans needed 61,060 4902 3784 14303 6065 4318 3405 4636 4883 11553 3211 0 0
Interest pay. (oper. loan) 5,696 0 0 0 0 0 0 0 0 0 0 5696 0
Principal pay.(oper, loan) 71,060 0 0 0 0 0 0 0 0 0 0 71060 0
Ending cash balance 5262 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 6403 5262
ACCRUED INTEREST (Beg Hth.) 0 192 432 857 1360 1918 2521 3183 3907 4781 5696 0
OPERATIN6 LOAN BALANCE (End Nth.) 14902 18686 32989 39055 43372 46777 51413 56296 67849 71060 0 0

Beg

FEB MAR APR NAY JUN JUL AU6 SEP

Catfish (5-ac. pds.) S81,250 10 lbs 8125 0.65

OPERATING EXPENSES:
Labor hired
Repairs machinery
Repairs lapr/Bldg
Rent/leases
Fingerlings/P.Larvae
Fertilizer t lime
Chemicals
Custom machine hire
Feed/Supplies
Storage & Freeze
Gas, fuel, oil
Nktg & trans. exp.
Other
TOTAL EXPENSE
NET RETURNS-CROP il

i$,120
$3,911
$1,000
$0
$1,000
$1,000
$3,500
$500
$16,500
$0
$235

$10,600
$44,366
$36,884

Ponds Un.S/Pond S/Unit

10 hrs
10 S/S
10 S/I
10 /
10 lbs
10 lbs
10 gal
10 hrs
10 ton
10 $1/
10 gal
10 $1/
10 V/5

612 4.00
391 1.00
100 1.00
0 1.00
100 2.00
100 0.50
350 1.00
50 10.00
1650 0.15
0 1.00
24 0.98
0 1.00
1060 0.08
$4,437
$3,688

QUANTITY
18 18 18 21.5 21.5 18 18
30 62.1 20 70 50 82

50
200
350

1000 1000 1000 1000 1000 2000 2000 1000 1000

2 2 2 2 2 2 2 2 2 2

13250

FISH CROP 12

Catfish (Late Crop)

CROP OPER. EXPENSES:
Labor hired
Repairs machinery
Repairs lepr/Bldg
Rent/leases
Fingerlings/P.Larvae
Fertilizer & lime
Chemicals
Custom machine hire
Feed/Supplies
Storage & Freeze
6as, fuel, oil
Nktg & trans. exp.
Other
TOTAL CROP EXPENSE
NET RETURNS-CROP 12

Total SqFt Un. $/SF $/Unit JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC !

$0 100 BU 0 5.90 0.0

SqFt Un.
100 $/hr
100 V/s
100 $I/
100 t1/b

100 S/lb
100 /Ilb

100 $/I
100 $I/
100 8/9
100 $/gl
100 t/S
100 1I/

S/SF $/Unit
0 2.00
0 1.00
0 1.00
0 1.00
0 1.15
0 1.20
0 1.00
0 1.00
0 1.00
0 1.00
0 1.12
0 1.00
0 1.00
80
$0

QUANTITY

0.0 0.0 0.0
0.0 0.0 0,0 0.0 0.0
0.0

0.0
0.0 0.0 0.0
0.0 0.0
0.0
0.0 0.0 0.0 0.0 0.0
0.0
0.0 0.0 0.0 0.0 0.0
0.0
0.0

OCT NOV DEC

12500

5

2 2

FISH CROP Il

Total Ponds Un.$/Pond S/Unit JAN

Total SqFt Un. S/SF $/Unit JAN FEB NAR APR MAY JUN JUL AU6 SEP OCT NOV DEC
(0 100 BU 0 0.00 / 0.0
$0 too DU 0 0.00/ 0.0

CROP OPER. EXPENSES:
Labor hired
Repairs machinery
Repairs Impr/Bldg
Rent/leases
Fingerlings/P.Larvae
Fertilizer I lime
Chemicals
Custom machine hire
Feed/Supplies
Storage & Freeze
Gas, fuel, oil
MA tRMP'EXPIesE
1etETURNS-CROP 13

SqFt Un. S/SF $/Unit
100 S/hr 0 0.00
100 t /$ 0 0.00
100 S/S 0 0.00
100 S(/ 0 0.00
100 $/lb 0 0.00
100 t/lb 0 0.00
100 $/g9 0 0.00
100 S/5 0 0.00
100 (/$ 0 0.00
100 1/5 0 0.00
100 S/gl 0 0.00
100$ ss j 0.00
100 /$ 0.00

QUANTITY

0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0

0.0
0.0 0.0 0.0
0.0 0.0
0.0
0.0 0.0 0.0 0.0 0.0
0.0
0.0 0.0 0.0 0.0 0.0
0.0
0.0

Total SqFt Un. S/SF S/Unit JAN FEB HAR APR MAY JUN JUL AU6 SEP OCT NOV DEC

sO 100 S/SU 0 0.00 0.0

CROP OPER. EXPENSES:
Labor hired
Repairs machinery
Repairs lapr/Bldg
Rent/leases
Fingerlings/P.Larvae
Fertilizer & lime
Chemicals
Custom machine hire
Feed/Supplies
Storage t Freeze
Gas, fuel, oil
Mktg I trans. exp.
Other
TOTAL CROP EXPENSE
NET RETURNS-CROP #4

SqFt Un. S/SF S/Unit
50 100 $/$ 0 0.00
$0 100 $/$ 0 0.00
s0 100 /5$ 0 0.00
$0 100 1/3 0 0.00
(0 100 $/lb 0 0.00
$0 100 $/lb 0 0.00
$0 100 9/gl 0 0.00
$0 100 $/S 0 0.00
s0 100 /$1 0 0.00
(0 100 W/$ 0 0.00
$0 100 $/gl 0 0.00
$0 100 $/s 0 0.00
$0 100 S/S 0 0.00
$0 $0
s0 $0

QUANTITY
0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0

0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0

FISH CROP 3

the main enu

FISH CROP t4

Total SqFt Un. $/SF S/Unit JAN FEB AR APR NAY JUN JUL AUG SEP OCT NOV KC
0 100 -lU 0 0.00
to too DU 0 0.00

CROP OPER. EXPENSES:
Labor hired
Repairs machinery
Repairs Impr/Bldg
Rent/leases
Fingerlings/P.Larvae
Fertilizer I lime
Chemicals
Custom machine hire
Feed/Supplies
Storage I Freeze
Gas, fuel, oil
Nktg t trans. exp.
Other
TOTAL CROP EXPENSE
NET RETURNS-CROP #5

SqFt Un. S/SF S/Unit
100 S/hr 0 0.00
100 S/S 0 0.00
100 W/S 0 0.00
100 W$/ 0 0.00
100 S/lb 0 0.00
100 S/lb 0 0.00
100 S/gl 0 0.00
100 M/5 -0 0.00
100 $i/ 0 0.00
100 1/ 0 0.00
100 /9i 0 0 0.00
100 M/5 0 0.00
100 o$1 0 0.00
SO
$0

FISH CROP #5

QUANTITY

FINANCIAL RATIOS (using market values)
LIQUIDITY
CURRENT RATIO = Current Assets/Current Liab
CURRENT DEBT = Current Liab./Total Liab.

LEVERAGE RATIO
NET CAPITAL RATIO =
EQUITY-VALUE RATIO=

RETURN ON EQUITY =
RETURN ON INVSTMT =

GROSS RATIO
TURNOVER RATIO
DEBT SERVICING
EXPENSE STRUCTURE =

SOLVENCY
Total Liab./Net Worth
Total Assets/Total Liab.
Net Worth/Total Assets

PROFITABILITY
NET INCOME / NET WORTH
Income + Interest/Total Assets

FINANCIAL EFFICIENCY
Operating Exp/Value Production
Value Production/Total Assets
Loan Payments/Value Production
Loan Pay./Loan Pay. + Oper Exp

0.56
2.79
0.64

0.23'
5.39
0.81

= 0.22 N/A
= -0.11 N/A

DURING
= N/A 0.57
= N/A 1.01
= N/A 1.15
= N/A 0.67

BEG.
= 0.96
= 0.43

ENDING
5.83
0.16

MARKET VALUE BALANCE SHEETS
(includes market values of
If liquidated, gains

BEGINNING BALANCE SHEET
Current Assets
Intermediate Assets
Land (market value)
Blds/Impr/Levee
TOTAL Assets

ENDING BALANCE SHEET
Current Assets
Intermediate Assets
Land (market value)
Blds/Impr/Levee
TOTAL Assets

machinery, breeding stock, land, buildings)
above book-value will create tax liability.

11887
15480
50000
3000
80367

14262
15480
50000
4000
83742

Current Liabilities
Intermediate Liabilities
Long Term Liabilities
TOTAL Liabilities
NET WORTH (MKT value)

NET WORTH (TAX value)

Current Liabilities
Intermediate Liabilities
Long Term Liabilities
TOTAL Liabilities
NET WORTH (MKT value)

NET WORTH (TAX value)

12438
11600
4775
28813
51554

-1883

2447
8371
4728
15546
68196

10933

STATEMENT OF OWNER EQUITY
--------------------------------------------------------------
BEG NET WORTH (TAX Value) ($1,883)> BEG NET WORTH(TAX Value) ($1,883)

ADD: I ADD:

OWNER CONTRIBUTIONS
NET INCOME

LESS:
OWNER WITHDRAWALS

EQUALS

$O I OWNER CONTRIBUTIONS
$12,816 NET INCOME
MARKET VALUE ADJUSTMENTS
MACHINERY & EQUIPMENT
BREEDING STOCK
LAND
BLDGS/IMPR/LEVEES
LESS:
$0 OWNER WITHDRAWALS

$10,933 :

EQUALS

END. NET WORTH (TAX Value) $10,933 I END NET WORTH(Mkt Value) $68,196
-----------------------------------------------------------------------

$0
$12,816

$7,388
$0
$50,000
($125)

$0

$68,196

BALANCE SHEET -DECEMBER 31,

ASSETS LIABILITIES

CURRENT ASSETS DEBIT I CURRENT LIABILITIES I CREDIT

CASH (checking...) 1 5,262 ACCOUNTS PAY. 1 1,500
SAVINGS ACCT/TIME CERT 5,000 1 OPERATING LOAN 12mns. 0
OTHER CASH ASSET(cashflow)l 2,000 1 ACCRUED INT. (Oper.Ln) 0
NOTES & ACCTS RECEIVABLE I 500 1 INTMED. LOANS (Due 12mo) 0
PURCHASED STOCK expensedd) 0 LONG-TERM LNS (Due 12mo)1 47
PRODUCED STOCK INVENTORY 0 REAL ESTATE TAX LIAB. 900
SUPPLIES/FEED INVENTORY 1,500 : RENT & LEASE PAYMENTS 0
OTHER CURRENT ASSETS 0 1 OTHER CURRENT LIABILITS.1 0
----------------------------------I-------------- ------
TOTAL CURRENT ASSETS 1 14,262 1 TOTAL CURRENT LIAB. 1 2,447

INTERIM. & FIXED ASSETS I DEBIT INTERIM. & LONG TERM LIAB.I CREDIT

MACHINERY EQUIP (CR Sch.) 1 8,093 NOTES PAYABLE 200
BREEDING STOCK (CR Sch.) I 0 INTERMEDIATE LOANS 8,171
RETIREMENT ACCTS. 0 OTHER INTERMEDIATE LIAB.1 0
OTHER INTERM. ASSETS ------------------------ ---------
-------------- -- TOTAL INTERMEDIATE LIAB. 8,371
TOTAL INTERMEDIATE ASSETS! 8,093 ------------------------ -------
-------------- -- LONG TERM LOANS 4,728
NOTES RECEIVABLE 1,000 1 OTHER LONG TERM LIAB. 0
LAND (cost:non-depr.) 0 ------------------------ --------
BUILD./IMPROVE. (CR Sch.) 3,125 TOTAL LONG TERM LIAB. 4,728
OTHER FIXED ASSETS 0 1------------------------- --------
--------------- -- TOTAL LIABILITIES 1 15,546
TOTAL FIXED ASSETS 4,125 I NET WORTH 1 10,933

TOTAL ASSETS -----------------26480 ---------NET WORTH + LIABILITIES 26,480
TOTAL ASSETS 1 26,480 1 NET WORTH + LIABILITIES 1 26,480

1987

INCOME STATEMENT- FOR YEAR

REVENUES

FISH CROPS
cash sales
inventory change

CAPITAL SALES
Brood Stock
Mach,Bld,Land Sale (net of BV)

CUSTOM WORK: CASH
GOVT. PAYMENTS
INTEREST (Sav,Retire) INCOME
OTHER
ADJUSTMENTS IN RECEIVABLES

Accrual Cash

81,250
0

81,250

81,250

50 50
0 0
0 0
0 0
1,000 N/A

REVENUE
purchased stock expensedd)
feed expense
OF PRODUCTION
CASH OPER EXPS (cashflow sch.)
INTEREST EXPENSE
MARGIN

OTHER EXPENSES
ASSET ADJ. (sup.,prepaids,& other)
PAYABLES ADJ. (taxes,rent,payroll)
COST RECOVERY:
Machinery & equip.
Brood Stock
Buildings/Improvements/Levees

(500) N/A
(100) N/A

3,576
0
250

NET INCOME

(3,826) (3,826)

12816 11186
======= ===DI==

GROSS
less
less
VALUE
less
less
GROSS

82,300
0
(0)
82,300
(46,231)
(18,827)
17,242

81,300
0
(0)
81,300
(46,231)
(20,057)
15,011

1987

BALANCE SHEET- DECEMBER 31,

ASSETS LIABILITIES

CURRENT ASSETS I DEBIT I CURRENT LIABILITIES CREDIT

CASH (checking...) 2,387 ACCOUNTS PAY. 1,500
SAVINGS ACCT/TIME CERT 5,000 OPERATING LOAN 10,000
OTHER CASH ASSET(cashflow)l 2,000 ACCRUED INT. (Oper.Ln) 0
NOTES & ACCTS RECEIVABLE 500 INTMED. LOANS (Due 12mo) 0
PURCHASED STOCK expensedd): 0 LONG-TERM LNS (Due 12mo)l 38
PRODUCED STOCK INVENTORY 0 1 REAL ESTATE TAX LIAB. 900
SUPPLIES/FEED INVENTORY 2,000 : RENT & LEASE PAYMENTS 0
OTHER CURRENT ASSETS 0 OTHER 0
-----------------------------------I -
TOTAL CURRENT ASSETS 11,887 TOTAL CURRENT LIAB. 1 12,438

INTERIM. & FIXED ASSETS I DEBIT INTERIM. & LONG TERM LIAB.: CREDIT
-------------------------- --------- !I-------------- -----
MACHINERY EQUIP (CR Sch.) 11,668 NOTES PAYABLE i 100
BROOD STOCK (CR Sch.) 0 : INTERMEDIATE LOANS 11,500
RETIREMENT ACCTS. 0 1 OTHER INTERMEDIATE LIAB.1 0
OTHER INTERM. ASSETS 0 ----------------------------------
--- ------------------- --------- TOTAL INTERMEDIATE LIAB.I 11,600
TOTAL INTERMEDIATE ASSETSI 11,668 1------------------------ --------
--------------------- LONG TERM LOANS 1 4,775
NOTES RECEIVABLE 0 OTHER LONG TERM LIAB. 0
LAND (cost:non-depr.) 0 ---------------------------------
BUILD./IMPROVE. (CR Sch.) 1 3,375 TOTAL LONG TERM LIAB. 4,775
OTHER FIXED ASSETS 0 ---------------------------------
------------------TOTAL LIABILITIES 28,813
TOTAL FIXED ASSETS i 3,375 1 NET WORTH (1,883)
TOTAL ASSETS -26,930 NET WORTH + LIABILITIES 26,930

1986

Intermediate loan # 2
Loan number:
Name of Loan:
Interest Rt.:
Actual PCA Rt:
Mths Amortizal
MTH Ending Paymer

1

o. 00%

tion=
nts

Curr.Int.

Long Term Loan
Loan number: 1
Name of Loan:
Interest Rt.:
Actual PCA Rt: 0.00%
Mths Amortization=
MTH Ending Payments Curr.Int.

1 0 0
2 0 0
3 0 0

If loan initiated
which month ?:
PCA Stock (%):
Prin. Remain.:
Prev. Int.Due:
Acc.Int. Principal

If loan initiated
which month ?:
PCA Stock (%):
Prin. Remain.:
Prev. Int.Due:
Acc.Int. Principal

this year,

ENDING BAL.

this year,

ENDING BAL.

AMORTIZED INTERMEDIATE LOANS

# NAME YR

1 Feed Bin 82
2 Mower 83
3 Truck (1/2 ton)81
4 Dis. Oxy Kit 84
5 Tractor 82
6 Boat (12 ft) 82
7 Aerator 83
8 Electric Motor 83
9 Battery/Chrgr 84
10 Feed Wagon 82
SUBTOTAL
LONG-TERM LOANS
1 POND CONST. 80
2
3
SUBTOTAL
TOTAL

MTH AMOUNT

6 $25,000
3 $1,725
8 $7,500
3 $40
4 $9,800
5 $375
5 $1,300
7 $150
8 $110
10 $4,700

1

1
1
I
I
I
I
I
I
I
1
1
1
1
1
1
1
1

RATE LIFE
(%) mths

6.00% 24
6.00% 24
4.50% 36
6.00% 24
4.50% 36
4.50% 36
4.50% 36
6.00% 24
6.00% 24
4.50% 36

$5,000 12.00%

MONTHLY
PAYMENT

1224
84
258
2
337
13
45
7
5
162
2138

360

BEG.PRIN ENDING
1987 1987

0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
O O

51 4813 4775
0 0 0

0
51
2190

0
4813
4813

0
4775
4775

Intermediate loan # 1
Loan number: 1
Name of Loan: County PCA
Interest Rt.: 12.00%

Actual PCA Rt: 13.33%
12 Mths Amortization=
MTH Ending Payments

0
5,000
0
0
0
C)
Co

1789
Curr.Int.

128
147
151
154
157
161
164
168
172
88
90
92

If loan initiated
which month ?:
PCA Stock (%):

Prin.
Prev.
Acc. Int.

1,628
1,775
1,926
2,080
2,237
2,398
2,562
2,730
0
88
178
269

Remain.:
Int. Due:
Principal

10,000
10,000
10,000C
10,000
10,000
10,000
10,000
10,000
7,902
7,902
7,902
7,902

this year,
0
10%
10,000
1,500
ENDING BAL.

11,628
11,775
11,926
12,080
12,237
12,398
12,562
12,730
7,902
7,990
8,079
8,171

BREEDING STOCK
Num NAME

31 BROOD STOCK (Early)
32
33
34
35
36
37
38
39

COST
Purch.
Yr Mth

R E C 0 V
Purch.
Life Price

44
45
TOTAL BREEDING STOCK

ER Y
MKT ACR
Value Meth

0 0

ACR ACCUM
87 ACR

0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
O O

O O
0 O
O O
0 0
0 0
O 0
O O
0 0
0 O
O 0
0 0
0 0

COST
BLDGs/IMPRV.(levees) Purch.
Num NAME Yr Mth

46 Pond Levees 80
47
48
49
50
51
52
53
54
55
56
57
58
59
60
TOTAL BUILDINGS/IMPROVEMENTS

RE C OV
Purch.
Life Price

20 5000

ERY
MKT ACR
Value Meth

3000 1

5000 3000

AC

25

:R ACCUM
17 ACR

0c 1875
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
50 1875

25

COST RECOVERY

Num

MACHINERY/EQUIPMENT Purch.
NAME Yr Mth

1 Feed Bin
2 Mower
3 Truck (1/2 ton)
4 Dis. Oxy. Kit
5 Tractor (40 H.P.)
6 Boat (12 ft)
7 Aerator
8 Electric Motor
9 Battery
10 Battery Charger
11 Feed Wagon
12
13
14
'15
...CONTINUED
MACHINERY/EQUIPMENT
Num NAME

Purch. MKT ACR
Life Price Value Meth

2500
1725
7500
40
9800
375
1300
150
75
35
4700

1000
1200
500
30
8000
200
1000
50
0
0
3500

COST REC VERY
Purch. Purch. MKT ACR
Yr Mth Life Price Value Meth

ACR ACCUM
87 ACR

357 1965
345 1553
1072 6966
8 28
980 5390
38 206
260 1170
30 135
13 75
4 35
470 2585
0 0
0 0
0 0
0 0

ACR
87

ACCUM
ACR

20
21
22
23
24
25
26
27
28
29
30
TOTAL MACHINERY COST RECOVERY

28200 15480

0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
3576 20108

APPENDIX B

BALANCE SHEET
MARKET VALUE
90 -

60 -

10

60

40

30 -

20 -

10

BEGINNING ENDING

NET WRTH + TOTAL AS U
NET WORTH + = LIABIUTIES

CASH FLOW

90

80

70

50
60

I 40
0 50
f6 30

20

7 Aaurplua(defcit)

7

i l

v I I T

JA FES MA APIA U U U E C O E
- 1

JAN FEB MAR APR kMY JUN JUL AUG SEP OCT NOV DEC

I

7 Availn.

= outflow

CURRENT RATIO

5

4.

0

2

BEG. EN NG
CURRENT ASSETS / CURRENT U48ILTIES

FINANCIAL EFFICIENCY
mmo05

r

/~~

r

/

1.1 -
1-
0.9 -
0.8-
0.6

0.5-

0.3-
0.2 -
0.1
0

TURNOVER

DEBT SERVE

r

/

EXP STRUCK

RATIO NAME

- J ~ y.. &~ d d.& dr&...... -

I

GROSS

F

INCOME STATEMENT

Accrual Csh
LEVELLS OF IN. ME
S GROSS NET TAXABLE

FARM PROD

LEVERAGE RATIO

0.6

0.5

0.4-

O
0.3

0.2

0.
BEG. ENING
MTL LKRA. / NET WORTH
= LEVERAGE

PROFITABILITY RATIOS

0.22

0.2 -
0.18 -
0.16-
0.14
0.12
0.1
0.06
0.06
0.04
0.02
0
-0.02 -
-0.04-
-0.06
-0.08
-0.1
-0. 12
RET ON EQUITY RET ON INVST
INCOME/NET WORTH I INCOME+INT./ASSETS

UNIVERSITY OF FLO RIDA
2i62 II lliiil01II
3 1262 04419455 2

Due
EC 0ti o
MAR 16 192
.... 18 g e9

.,.y

Returned
EC o0 199
FEB 2 0 199
OCT 16 IM2

Returned
[J[C o o 19
FEB 2 o 199
OCT 1 o w

Date Due

.7 1 --

Due

Due

Returned

COOPERATIVE EXTENSION SERVICE, UNIVERSITY OF FLORIDA, INSTITUTE OF FOOD AND AGRICULTURAL SCIENCES, G.L.
Zachariah, director, in cooperation with the United States Department of Agriculture, publishes this information to further the purpose of the
May 8 and June 30, 1914 Acts of Congress; and is authorized to provide research, educational information and other services only to
individuals and institutions that function without regard to race, color, sex, age, handicap or national origin. Information on copies for purchase
is available from C.M. Hinton, Publications Distribution Center, IFAS Building 664, University of Florida, Gainesville, Florida 32611. Before
publicizing this publication, editors should contact this address to determine availability.