|
Floppy disc included with this
item has been shelved separately.
Consult LUIS or ask circulation
staff for assistance.
October 1988
FASTFIVE:
Five Year Feasibility and
Financial Statement Analysis Program
I COMPUTER SERIES]
Rom Alderman
Central Science
Library
JAN 30 1990
University of Florida
rmtive Extension Service I Institute of Food and Agricultural Sciences / University of Florida / John T. Woeate, Dean
Circular 814
101
F636c
814
guide
i, I
DISCLAIMER
The Board of Regents of 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 the 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, expressed or implied, including but not limited to any
warranty of merchantability or fitness for a particular purpose or 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.
FASTFIVE
Five Year Feasibility
and Financial Statement Analysis Program
Rom Alderman
Computer Related Services (FARMLab)
Food and Resource Economics Department
Institute of Food and Agricultural Sciences
University of Florida
Gainesville, Florida
UNi~r~ff, Of. FLORIDA LkID ARIES
TABLE OF CONTENTS
LIST OF FIGURES . . ..
ABSTRACT ........ .
FOREWORD ........ .
Description ... .. . ...
Specifications .........
Making Backup Copies .. .
Starting FastFive ......
Enterprise Cash Flows.... .
Balance Sheets .......
Cash Flow .........
Income Statements. . . .
Financial Ratios . . . ..
Summary . . . . . .
REFERENCES . . . .
APPENDIX (Sample Output). .
APPENDIX (Calculator/By-Hand Worksheets)
. . . . . . . . iv
. . . . . . . . v
. . . . . . . . vi
. . . . . . . . 1
. . . . . . . . 1
. . . . . . . . 1
. . . . . . . . 1
. . . . . . . . 2
. . . . . . . . 3
. . . . . . . . 5
. . . . . . . . 6
. .. . .. . .. . 7
. . . . . . . . 7
. . . . . . . . 9
. 17
LIST OF FIGURES
FIGURE 1.
FIGURE 2.
FIGURE 3.
FIGURE 4.
FIGURE 5.
FIGURE 6.
FIGURE 7..
Enterprise Cash Flow . . . . . .
Balance Sheet (Asset Section) . . .
Balance Sheet (Liability & Equity Section)
Cash Flow . . . . . . . .
Cash Flow (Con't) . . . . . .
Income Statement . . . . . .
Financial Ratios . . . . . . .
ABSTRACT
This manual explains how to use the FastFive microcomputer program. FastFive: 5 Year
Feasibility and Financial Statement Analysis Program provides the structure and method for
developing a five year analysis using a minimum dataset. It helps combine information from
crop, livestock, and other budgets into a financial outlook which includes cash flows, debt
payments, balance sheets, income statements and financial ratios with some diagnostics. This
program works well as a supplement to many financial and/or budgeting packages, including
FarmMgr. ALTCROP. BUDTIME. and FINPACK. FastFive quickly generates easy to use what-if
scenarios, especially with respect to longer term price, yield, interest rate, acreage and cost
variations.
@ 1988 University of Florida
Basic Spreadsheet Commands Needed:
/FR FASTFIVE file retrieve the file FASTFIVE.WK?
/FS filename file save various scenarios created, "filename" can be any descriptive name.
/PPAGQ print the entire analysis to your printer
FOREWORD
"To the extent that we can control the future we do not have to forecast it (just as we
do not forecast the weather in our homes because we control it). To the extent that we can
respond rapidly and effectively to changes that we neither control nor expect (as in driving
an automobile), we need not forecast them. The better we can adapt to what we do not
control, the less we need to control."1 The goal of FastFive is not only to improve the
manager's forecasting ability but to enable managers to Increase their control of the future
and their ability to respond rapidly and effectively to what they do not control.
Some long range goals and objectives should be discovered before building a forecast. It
is best to look as far into the future as possible, then step back and look at some specifics
on how to get there. Common long-term goals may be to provide stockholders, partners
and/or heirs with a certain level of income, growth, land, livelihood, and/or diversity of
business. Once these goals are established, FastFive can help managers find the specifics of
how to achieve these goals, provide some foundation for daily decisions, and adapt to
unpredictable changes. We need not have exact or even close forecasts to get a feel for how
to adapt.
Visualizing future financial positions becomes very time consuming without the aid of a
computer. It becomes even harder to visualize when changes in our climatic, economic, and/or
political environment occur. Planning is a continual process that prepares us to adapt. Ben
Franklin said, "Look before, or you will find yourself behind". If you do not know where you
are going, you can not adapt. If you do not know some specifics about where you're going,
you will not adapt quickly enough and probably incorrectly. FastFive makes it possible to
run multiple scenarios that will show the various impacts, dangers, and opportunities of these
changes in environment.
1 Ackoff, Russell L. "Creating the Corporate Future: Plan Or Be Planned For." Wharton
School of Business, John Wiley & Sons, 1981.
Description
FastFive (5 Year Feasibility and Financial Statement Analysis Program) provides the
structure and method for developing a five year analysis using a minimum dataset. It helps
combine information from crop, livestock and other budgets into a financial outlook which
includes cash flows, debt payments, balance sheets, income statements, and financial ratios
with some diagnostics. FastFive quickly creates easy to use what-if scenarios, especially with
respect to longer term price, yield, interest rate, acreage, and cost fluctuations.
Specifications
FastFive requires 256k of memory, and is compatible with MS-DOS computers using a
using 1-2-3 compatible software package (such as Lotus, Quattro, As-Easy-As, PlanPerfect, VP
Planner). No programming knowledge is required, but FastFive does require some spreadsheet
skills.
1-2-3 compatibility was chosen as the analysis environment not only for its well-known
user interface, but because it is widely used by farmers, lending institutions, and training is
available from many universities and community colleges. As the user becomes more familiar
with using these spreadsheets and FastFive, the two programs will provide a framework from
which individuals can modify or create decision tools designed to meet their own needs and
preferences.
Making Backuo Copies
Before using FastFive for the first time protect the original distribution disk by making
a backup copy of it. This backup copy will be your day-to-day working copy. Place the
original disk in a safe location. If your working disk should ever develop a fatal error you
will always have the original disk from which you can make a new working copy. To make a
backup copy, refer to DISKCOPY (floppy drives), subdirectories (hard drives) and the COPY
commands in the MS-DOS users manual.
Starting FastFive
To start a FastFive session from a dual floppy disk system follow these steps:
1. Put your FastFive working disk in drive B.
2. Start your spreadsheet program. Refer to their manuals for instructions on
loading.
3. If Drive B is not the default drive, use the command /FD (File Directory),
type B:\.
To start a FastFive session from a hard disk follow these steps:
1. Put your FastFive working disk in drive A.
2. Use the DOS commands MD and CD to make and change to a sub-directory
called FASTFIVE. Use COPY A:*.* to copy the FastFive files.
3. Start your spreadsheet program. Refer to their manuals for instructions on
loading.
4. Use the command /FD (File Directory) and provide the appropriate drive letter
and subdirectory name (Ex. C:\FASTFIVE).
Lastly: Use the /FR (File Retrieve) to load FastFive. Lotus IA users should /FR the
filename "FASTFIVE.wks", all other users should retrieve FASTFIVE.wkl. The
filename "BLANK" is a clean FastFive spreadsheet with zeros as data. After
retrieving "FASTFIVE", the first screen of FastFive should be displayed (Figure 1).
Enterprise Cash Flows1
The first screen displayed is a five year enterprise cash flow for crop #1, presented
annually. It calculates the net cash flow for a particular enterprise based upon Price, Yield,
Cash Cost/Acre, and number of Acres to be planted. By providing this minimum data set into
the first year's highlighted cells, a flat-strategy scenario will be calculated, by default. The
remaining years can be altered to reflect different scenarios by entering new values or by
editing the current formula to reflect changes. For example: Edit cell F7 from +E7 to,
+E7+.10, a ten cents per bushel increase, or to +E7*1.1 or +E7*.9, a 10 percent increase or
decrease in the value. This change could be copied to the remaining years to reflect a
consistent change over time. The worksheet calculates the results each time a new entry is
made. It is also possible to set recalculation to manual (/WGRM) and use the function key F9
(Calc) each time you wish to recalculate.
The page down (PgDn) key displays the screen located just below crop #1 to bring up
crop/enterprise #2 which may then be analyzed. The user may analyze up to 10 enterprises
by using the PgDn key to move down to each. PgUp will move the user back up to the
previous enterprise and the Home key will take the user to the first screen, crop #1. More
experienced spreadsheet users can expand the number the enterprises to a number limited only
by the computer memory. Most computers will handle over a hundred enterprises. Creating
more than ten enterprises is not difficult. Simply perform a worksheet insert row (/WIR) for
16 rows, copy the 16 rows from an existing crop screen to the newly created 16 rows, and
add the gross sales and total cost cells to the Total Enterprise Sales & Cash Expenses
formulas in the cash flow section. The NET FLOW (before Op.Loan) line at the top of each
screen provide users with a reference of how changes in a particular section affects the
overall cash flow status of the entire business.
Figure 1. Enterprise Cash Flow
A5: [W1] ** CashFlow * beg: READY
A B C D E F G 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): ($1,289) $4,461 $9,711 ($3,539) $11,211
3 1987 1988 1989 1990 1991
4 .. -..... ..... ...... ........ .........
5 CashFlow beg: 1987
6
7 Crop #1: Price: $1.65 $1.75 $1.85 $1.95 $2.05
8 Corn (bu) Yield: 75 75 75 75 75
9 NW Field
10 Receipts/Acre: $124 $131 $139 $146 $154
11 Cost/Acre: $151 $151 $151 $151 $151
12
13 Gross/Acre: ($27) ($20) ($12) ($5) $3
14
15 Acres: 100 100 100 100 100
16 Gross Receipts: $12,375 $13,125 $13,875 $14,625 $15,375
17 Total Cost: $15,100 $15,100 $15,100 $15,100 $15,100
18
19 Net CashFlow #1: ($2,725) ($1,975) ($1,225) ($475) $275
20
Balance Sheet2
Just below all the enterprise screens (10 (PgDn)'s from Home or F5 (GoTo Key) then BS)
are the balance sheets screens. This screen is the asset section, the next (PgDn) is the
Liability & Equity section. Once again, providing the base numbers in the highlighted cells
will produce a flat-strategy scenario. Be careful to include all assets (such as land and assets
associated with the land) and all liabilities including personal loans used in the business.
Generally 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 the funds. It is still possible to produce a "book value or cost" balance sheet
and compare with the differences of the market value approach. Care should be taken when
adding large purchases in the mid stream of the analysis. Typically these purchases need to
be added to the asset section, the liability section for financing acquired, and the cash flow
statement under Purchase and Other Inflows (Loans).
Figure 2. Balance Sheet (Asset Section)
A165: [W1] 'MARKET VALUE BALANCE SHEET READY
A B C D E F G 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): ($1,289) $4,461 $9,711 ($3,539) $11,211
3 1987 1988 1989 1990 1991
4 .... ... .. -.-.. ........ .... ........
165 MARKET VALUE BALANCE SHEET
166 (Beginning Balance)
167 Cash 1000 1000 1000 1000 1000
168 Accounts Receivable 1890 1890 1890 1890 1890
169 Other Current Assets 12000 12000 12000 12000 12000
170 Subtotal 14890 14890 14890 14890 14890
171 Machinery & Equipment 35457 35457 35457 35457 35457
172 Livestock (Breeding) 38500 38500 38500 38500 38500
173 Other Intermediate Assets 7500 7500 7500 7500 7500
174 Subtotal 81457 81457 81457 81457 81457
175 Land&Related L-term Assets 96000 96000 96000 96000 96000
176 Other Long-Term Assets 0 0 0 0 0
177 Subtotal 96000 96000 96000 96000 96000
178
179 TOTAL ASSETS 192347 192347 192347 192347 192347
180 ======= === = ======== ======== ========
Debt is analyzed on an aggregate basis for simplicity. You may group your liabilities
into Operating, Intermediate, and Long-Term and add them up. More advanced spreadsheet
users may wish to develop side schedules to sum itemized debt as well as other input
requirements such as assets, cost per acre, and other cash flow items. Itemizing may not be
necessary in all cases, such as feasibility analysis of a new business, but is recommended for
older or more complex operations.
Figure 3. Balance Sheet (Liability & Equity Section)
A181: [W1]
READY
A B C D
F A S T F I V E IFAS/FRE,
NET FLOW (before Op.Loan):
Accounts Payable
Operating Loans
Other Current Liabilities
Subtotal
Intermed.Loans-Yrs 7
Other Interm. Liabilities
Subtotal
LongTerm Loans-Yrs 30
Other L.T. Liabilities
Subtotal
Total Liabilities
Owner(s) Equity
E
Copyright
($1,289)
1987
1835
46000
1500
49335
20000
0
20000
27000
0
27000
96335
96012
TOTAL LIABILITIES & EQUITY 192347
====cus
F G H I
(c)1988 University of Florida
$4,461 $9,711 ($3,539) $11,211
1988 1989 1990 1991
1835 1835 1835 1835
52809 54686 51537 61261
1500 1500 1500 1500
56144 58021 54872 64596
18018 15797 13311 10526
0 0 0 0
18018 15797 13311 10526
26888 26763 26622 26465
0 0 0 0
26888 26763 26622 26465
101050 100581 94805 101587
91297 91766 97542 90760
192347 192347 192347 192347
MWRXZuu== sM= =ZW Z==UZ == ==ss====
196 ....--................ .......................... .......................
Cash Flow1
The whole-business cash flow section (2 (PgDn)'s from the Balance Sheet section or the
F5 (GoTo Key) then CF)) automatically combines the enterprise cash flows, the cash balance
and the loan balances with all other cash flow items to show annual cash needs and
surpluses. All labor should be allocated to the appropriate enterprises. Any labor not easily
split between enterprises should fall under Unallocated Cash Expenses. Off-farm income used
by the business should be recorded as Additional Paid-in Capital. Use the grouping in the
liability section to sum the loan payments required annually. Again, for the more
experienced, side schedules may be developed to provide and sum the detail of any values.
FastFive may also be used to look at the effects of refinancing old operations or
financing new operations. The operating loan is automatically paid off and extended as cash
is needed. Therefore the line, NET CASH FLOW will contain new financing which may distort
the true cash performance for the year, so focus on the line, NET FLOW (before Op.Loan) to
identify cash flow problems or successes. The reference line mentioned earlier which is
displayed at the top of each section is this NET FLOW line.
Figures 4 & 5. Cash Flow
A197: EW1]
A B C
1 FAST F IVE
2 NET FLOW (before
D E
IFAS/FRE, Copyrigh
)p.Loan): ($1,289)
1987
Total Enterprise Sales:
Cash Expenses:
Net Flow (before below):
Intermediate Loans:
Interest Rate
Loan Payments Interest:
Principal:
Long-Term Loans:
Interest Rate
Loan Payments Interest:
Principal:
Purchases & oth outflows:
Unallocated Cash Expenses
Other Inflows (Loan,...):
$337,405
$317,730
$19,675
12.00%
2400
1982
12.00%
3240
112
1000
13000
0
READY
F G H I
t (c)1988 University of Florida
$4,461 $9,711 ($3,539) $11,211
1988 1989 1990 1991
$120,655 $125,905 $112,655 $127,405
$95,230 $95,230 $95,230 $95,230
$25,425 $30,675 $17,425 $32,175
12.00%
2162
2220
12.00%
3227
125
1000
13000
0
12.00%
1896
2487
12.00%
3212
140
1000
13000
0
12.00%
1597
2785
12.00%/
3195
157
1000
13000
0
12.00%
1263
3119
12.00%
3176
176
1000
13000
0
A213: [W1]
A B C D
1 F A S T F I V E IFAS/FRE,
2 NET FLOW (before Op.Loan):
3
4
213 Other Income (Gov't,...):
214 Addition Paid-in Capital:
215
216 Income Tax Payments:
217 Withdrawals of Capital:
218
219 NET FLOW (before Op.Loan):
220
221 Operating Loan:
222 Interest Rate
223 Additional Operating Loan:
224 Loan Payments Interest:
225 Principal:
226
227 NET CASH FLOW
228
E
Copyright
($1,289)
1987
770
0
0
0
-1289
F G H I
(c)1988 University of Florida
$4,461 $9,711 ($3,539) $11,
1988 1989 1990 1
770 770 770
0 0 0
0
0
4461
READY
211
991
770
0
0 0 0
0 0 0
.......9711 -3539 11211........
9711 -3539 11211
12.00% 12.00% 12.00% 12.00% 12.00%
6809 1876 0 9724 0
5520 6337 6562 6184 7351
0 0 3148 0 3859
........ ........ ........ ........ ........
0 0 0 0 0
ZZBZ==== z=====SB == ===== ======== ========
-
Income Statement3
The income statement screen, (PgDn}, subtracts total expenses from total revenue. Note
that depreciation is an expense item and not a cash item and capital flows (Withdrawals &
Contributions) and loan principal are cash items and not income statement items. IRS tax
depreciation methods may be used such as straight line or double declining balance-
Quattro/1-2-3 Rel 2 functions @SLN & @DDB). Net Income provides the user with an
approximation of business income before taxes.
Figure 6. Income Statement
A229: [W13 \-
READY
B C D
S T F I V E IFAS/FRE,
FLOW (before Op.Loan):
E F G H I
Copyright (c)1988 University of Florida
($1,289) $4,461 $9,711 ($3,539) $11,211
1987 1988 1989 1990 1991
INCOME STATEMENT
Enterprise Revenue
Other Income
Cash Expenses
Unallocated Cash Expenses
Interest Expense
Gross Margin
Depreciation
Net Income
337405 120655 125905 112655 127405
770 770 770 770 770
317730
1000
11160
8285
8146
139
95230
1000
11726
13469
8146
5324
95230
1000
11669
18776
8146
10630
95230
1000
10976
6219
8146
-1927
95230
1000
11790
20155
8146
12009
as====== nsmn===S zWZzSz Z zZuWWW Z===.s
Financial Ratios4
These financial ratios (one (PgDn) from the Income Statement) provide a basis for
comparison with other 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 (0.50=50%) of assets financed. The leverage ratio (Debt/Equity) shows the operation's
position (leverage) in obtaining additional financing. The current ratio (CA/CL) shows ability
of the operation to pay its short term debts. The working capital ratio is similar but
includes intermediate items. The gross ratio (0.94=94%) shows the amount of cash expenses
required to generate revenue. The expense structure ratio (0.04=4%) shows the portion of cash
outflow which is obligated to loan payments and the debt structure ratio (0.29=29%) shows the
portion of debt that is current (due within twelve months).
Figure 7. Financial Ratios
A245: [W1]
READY
A B C D
1 F A S T F I V E IFAS/FRE,
2 NET FLOW (before Op.Loan):
3
4
245
246 FINANCIAL RATIOS
247
248 Return on Equity (NI/Eqty)
249 Return on Assets(NI+Int/A)
250
251 Debt/Assets
252 Leverage (Debt/Equity)
253 Current Ratio (C.A./C.L.)
254 Working Capital (C&I A/L)
255
256 Gross Ratio(Cash Exp/Rev.)
257 Exp. Structure (LP/Exp+LP)
258 Debt Structure (C.L./T.L.)
259
260 == ======
E F G H I
Copyright (c)1988 University of Florida
($1,289) $4,461 $9,711 ($3,539) $11,211
1987 1988 1989 1990 1991
0.15% 5.83% 11.58% -1.98% 13.23%
5.87% 8.86% 11.59% 4.70% 12.37%
0.50 0.53 0.52
1.73 1.92 1.90
0.30 0.27 0.26
0.94 0.85 0.84
0.49 0.53
1.67 1.95
0.27 0.23
0.90 0.80
0.94 0.79 0.76 0.85 0.75
0.04 0.13 0.15 0.13 0.16
0.29 0.31 0.32 0.33 0.36
========a aa== = = = = = = =====
Summary
FastFive is an efficient way to gain insight into a multitude of scenarios, quickly. It
can test alternatives and variations in things such as crops, livestock, technology, prices, yield
fluctuations, financing, interest rates, firm size, etc., with immediate results reported on
screen and printed format. Further, the Quattro/1-2-3 data table (/DT) command option can
generate one and two-way tables for any given array of variations. FastFive also provides
users with the ability to expand and customize their analysis in a very simple and straight
forward structure.
REFERENCES
1. 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 32611.
2. 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 32611.
3. 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 32611.
4. van Blokland, P.J. Introducing Farm Business Analysis, Extension Circular No. 656.
Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences,
University of Florida, Gainesville, FL 32611.
APPENDIX (Sample Output)
F A S T F I V E IFAS/FRE,
NET FLOW (before Op.Loan):
Copyright 1988
($1,289) $3,711
1987 1988
-------- --------
University of Florida
$8,211 ($5,789) $8,211
1989 1990 1991
-------- -------- --------
* CashFlow beg:
Crop #1:
Corn (bu)
NW Field
Price:
Yield:
Receipts/Acre:
Cost/Acre:
Gross/Acre:
Acres:
Gross Receipts:
Total Cost:
Net CashFlow #1:
Crop #2: Price:
Soybeans (bu) Yield:
Receipts/Acre:
Cost/Acre:
Gross/Acre:
Acres:
Gross Receipts:
Total Cost:
Net CashFlow #2:
$1.65
75
$124
$151
($27)
100
$12,375
$15,100
($2,725)
$5.10
25
$127
$140
($13)
100
$12,750
$14,000
($1,250)
$1.65
75
$124
$151
($27)
100
$12,375
$15,100
($2,725)
$5.10
25
$127
$140
($13)
100
$12,750
$14,000
($1,250)
$1.65
75
$124
$151
($27)
100
$12,375
$15,100
($2,725)
$6.90
25
$173
$140
$33
100
$17,250
$14,000
$1.65
75
$124
$151
($27)
100
$12,375
$15,100
($2,725)
$6.90
5
$35
$142
($108)
100
$3,450
$14,200
$3,250 ($10,750)
Crop #3:
Peanuts (ibs)
(Quota)
Price:
Yield:
Receipts/Acre:
Cost/Acre:
Gross/Acre:
Acres:
Gross Receipts:
Total Cost:
Net CashFlow #3:
Crop #4: Price:
Add.Peanuts (ibs) Yield:
(Additionals)
Receipts/Acre:
Cost/Acre:
50
$37,500
$25,950
$11,550
$0.18
2800
$504
$315
50
$37,500
$25,950
$11,550
$0.18
2800
$504
$315
50
$37,500
$25,950
$11,550
$0.18
2800
$504
$315
50
$37,500
$25,950
50
$37,500
$25,950
$11,550 $11,550
$0.18
2800
$504
$315
$0.18
2800
$504
$315
1987
$1.65
75
$124
$151
($27)
100
$12,375
$15,100
($2,725)
$6.90
25
$173
$140
$33
100
$17,250
$14,000
$3,250
$0.25
3000
$750
$519
$231
$0.25
3000
$750
$519
$231
$0.25
3000
$750
$519
$231
$0.25
3000
$750
$519
$231
$0.25
3000
$750
$519
$231
F A S T F I V E IFAS/FRE,
NET FLOW (before Op.Loan):
Gross/Acre:
Copyright @ 1988
($1,289) $3,711
1987 1988
$189
$189
University of Florida
$8,211 ($5,789) $8,211
1989 1990 1991
$189
$189
$189
Acres:
Gross Receipts:
Total Cost:
Net CashFlow #4:
60
$30,240
$18,900
$11,340
60
$30,240
$18,900
$11,340
60
$30,240
$18,900
$11,340
60
$30,240
$18,900
60
$30,240
$18,900
$11,340 $11,340
Crop #5:
Enter
Crop Name
Price:
Yield:
Receipts/Acre:
Cost/Acre:
Gross/Acre:
Acres:
Gross Receipts:
Total Cost:
Net CashFlow #5:
Crop #6:
Enter
Crop Name
Price:
Yield:
Receipts/Acre:
Cost/Acre:
Gross/Acre:
Acres:
Gross Receipts:
Total Cost:
Net CashFlow #6:
Enterprise #7: Price:
Cow/Calf (head) Yield:
- North Pasture
Receipts/Unit:
Cost/Unit:
Gross/Unit:
Units:
Gross Receipts:
Total Cost:
Net CashFlow #7:
80
$27,040
$21,280
80
$27,040
$21,280
80
$27,040
$21,280
80
$27,040
$21,280
80
$27,040
$21,280
$5,760 $5,760 $5,760 $5,760 $5,760
$0.00
0
$0
0
$0.00
0
$0
0
$0.00
0
$0.00
0
$0
0
$0.00
0
$0.00
0
$0
0
$0
0
$0
$0
$0
$0.52
650
$338
$266
$72
$0.00
0
$0
0
$0
0
$0
$0
$0
$0.52
650
$338
$266
$72
$0.00
0
$0
0
$0
0
$0
$0
$0
$0.52
650
$338
$266
$72
$0.00
0
$0.52
650
$338
$266
$72
$0.00
0
$0.52
650
$338
$266
$72
F A S T F I V E IFAS/FRE, Copyright 1988
NET FLOW (before Op.Loan): ($1,289) $3,711
1987 1988
Enterprise #8: Price:
Dairy Yield:
Yield & Price/LB.
Receipts/Unit:
Cost/Unit:
Units = # head milking
Gross/Unit:
Units:
Gross Receipts:
Total Cost:
Net CashFlow #8:
$0.15
14500
$2,175
$2,225
($50)
$0.00
0
$0
$0
$0
University of Florida
$8,211 ($5,789) $8,211
1989 1990 1991
$0.00
0
$0
$0
$0
$0.00
0
$0.00
0
100
$217,500
$222,500
($5,000)
Enterprise #9:
Enterprise
Name
Price:
Yield:
Receipts/Unit:
Cost/Unit:
Gross/Unit:
Units:
Gross Receipts:
Total Cost:
Net CashFlow #9:
Enterprise #10:
Enterprise
Name
Price:
Yield:
Receipts/Unit:
Cost/Unit:
Gross/Unit: $0 $0 $0 $0 $0
Units: 0 0 0 0 0
Gross Receipts: $0 $0 $0 $0 $0
Total Cost: $0 $0 $0 $0 $0
Net CashFlow #10: $0 $0 $0 $0 $0
MARKET VALUE BALANCE SHEET
(Beginning Balance)
Cash (Min. $1,000 Balance) 1000 1000 1000 1000 1000
Accounts Receivable 1890 1890 1890 1890 1890
Other Current Assets 12000 12000 12000 12000 12000
Subtotal 14890 14890 14890 14890 14890
Machinery & Equipment 35457 35457 35457 35457 35457
Livestock (breeding) 38500 38500 38500 38500 38500
$0.00
0
$0
$0
$0
0
$0
$0
$0
$0.00
0
$0
$0
$0.00
0
$0
$0
$0
0
$0
$0
$0
$0.00
0
$0
$0
$0.00
0
$0.00
0
$0.00
0
$0
$0
$0
0
$0
$0
$0
$0.00
0
$0
$0
$0.00
0
$0.00
0
F A S T F I V E IFAS/FRE,
NET FLOW (before Op.Loan):
Other Intermediate Assets
Subtotal
Land&Related L-term Assets
Other Long-Term Assets
Subtotal
TOTAL ASSETS
Accounts Payable
Operating Loans
Other Current Liabilities
Subtotal
Intermed.Loans-Yrs 7
Other Interm. Liabilities
Subtotal
LongTerm Loans-Yrs 30
Other L.T. Liabilities
Subtotal
Total Liabilities
Owner(s) Equity
Copyright 1988
($1,289) $3,711
1987 1988
7500
81457
96000
0
96000
192347
1835
40000
1500
43335
20000
0
20000
27000
0
27000
90335
102012
7500
81457
96000
0
96000
University of Florida
$8,211 ($5,789) $8,211
1989 1990 1991
7500
81457
96000
0
96000
7500
81457
96000
0
96000
192347 192347 192347
1835
46089
1500
49424
18018
0
18018
26888
0
26888
94330
98017
1835
47909
1500
51244
15797
0
15797
26763
0
26763
93804
98543
1835
45448
1500
48783
13311
0
13311
26622
0
26622
88716
103631
7500
81457
96000
0
96000
192347
1835
56690
1500
60025
10526
0
10526
26465
0
26465
97016
95331
TOTAL LIABILITIES & EQUITY 192347
192347 192347 192347 192347
== =
Total Enterprise Sales:
Cash Expenses:
Net Flow (before below):
Intermediate Loans:
Interest Rate
Loan Payments Interest:
Principal:
Long-Term Loans:
Interest Rate
Loan Payments Interest:
Principal:
Purchases & oth outflows:
Unallocated Cash Expenses
Other Inflows (Loan,...):
Other Income (Gov't,...):
Addition Paid-in Capital:
Income Tax Payments:
Withdrawals of Capital:
NET FLOW (before Op.Loan):
Operating Loan:
Interest Rate
Additional Operating Loan:
Loan Payments Interest:
Principal:
NET CHANGE IN CASH BALANCE
$337,405 $119,905
$317,730 $95,230
$19,675 $24,675
12.00%
2400
1982
12.00%
3240
112
1000
1000
0
770
0
0
12000
-1289
12.00%
6089
4800
0
12.00%
2162
2220
12.00%
3227
125
1000
1000
0
770
0
0
12000
$124,405
$95,230
$29,175
12.00%
1896
2487
12.00%
3212
140
1000
1000
0
770
0
0
12000
$110,605
$95,430
$15,175
12.00%
1597
2785
12.00%
3195
157
1000
1000
0
770
0
0
12000
$124,405
$95,230
$29,175
12.00%
1263
3119
12.00%
3176
176
1000
1000
0
770
0
0
12000
3711 8211 -5789 8211
12.00%
1820
5531
0
12.00%
0
5749
2462
12.00%
11243
5454
0
12.00%
0
6803
1408
0 0
0
F A S T F I V E IFAS/FRE, Copyright 1988 University of Florida
NET FLOW (before Op.Loan): ($1,289) $3,711 $8,211 ($5,789) $8,211
1987 1988 1989 1990 1991
INCOME STATEMENT
Enterprise Revenue
Other Income
Cash Expenses
Unallocated Cash Expenses
Interest Expense
Gross Margin
Depreciation
Net Income
337405
770
317730
1000
10440
9005
8146
119905
770
95230
1000
10919
13526
8146
124405 110605
770 770
95230
1000
10856
18089
8146
95430
1000
10246
4699
8146
124405
770
95230
1000
11242
17703
8146
859 5380 9943 -3446 9558
FINANCIAL RATIOS
Return on Equity (NI/Eqty)
Return on Assets(NI+Int/A)
Debt/Assets
Leverage (Debt/Equity)
Current Ratio (C.A./C.L.)
Working Capital (C&I A/L)
Gross Ratio(Cash Exp/Rev.)
Exp. Structure (LP/Exp+LP)
Debt Structure (C.L./T.L.)
0.84%
5.87%
0.47
1.51
0.34
1.04
0.94
0.04
0.27
5.49% 10.09%
8.47% 10.81%
0.49
1.65
0.30
0.95
0.80
0.12
0.30
0.49
1.63
0.29
0.94
0.77
0.14
0.31
-3.33% 10.03%
3.53% 10.81%
0.46
1.46
0.31
1.00
0.87
0.12
0.31
0.50
1.76
0.25
0.85
0.77
0.14
0.35
DIAGNOSTICS & RECOMMENDATIONS
Liquidity (Current Ratio)
Debt Structure (CL/TL)
Solvency (D/A)
Profitability
Serious Serious Serious
O.K.
O.K.
Concern Concern
Problem
Problem
O.K.
Concern
Problem
Max D/A for ROE=0 if ROA
Min D/A for ROE-i if ROA>i N/A N/A N/A N/A N/A
Verify the enterprises have enough margin to cover fix cost (depr,...
Crop #1:
Crop #2:
Crop #3:
Crop #4:
Crop #5:
Corn (bu)
Soybeans (bu)
Peanuts (ibs)
Add.Peanuts (ibs
Enter
Serious
O.K.
Concern
Problem
Serious
O.K.
Concern
Problem
-2725
-1250
11550
11340
0
-2725
-1250
11550
11340
0
-2725
3250
11550
11340
0
-2725
-10750
11550
11340
0
-2725
3250
11550
11340
0
F A S T F I V E IFAS/FRE, Copyright 1988
NET FLOW (before Op.Loan): ($1,289) $3,711
1987 1988
-------- --------
University of Florida
$8,211 ($5,789) $8,211
1989 1990 1991
-------- -------- --------
Crop #6:
Ent. #7:
Ent. #8:
Ent. #9:
Ent #10:
Enter
Cow/Calf (head)
Dairy
Enterprise
Enterprise
Your return on equity is OK
Your return on assets is OK
i.e. Mgt. OK, debt to high
Debt risky,w/price decrease
0
5760
-5000
0
0
No
No
N/A
No
0
5760
0
0
0
No
Yes
Yes
No
0
5760
0
0
0
Yes
Yes
Yes
No
0
5760
0
0
0
No
No
N/A
No
0
5760
0
0
0
Yes
Yes
Yes
Yes
APPENDIX (Calculator/By-Hand Worksheets)
1 F A S T F I V E IFAS/FRE, Copyright 1988 University of Florida
2 A B C D E
3 Year 1
4 .................................... ....
5 Spreadsheet Your
6 Example Formulas Values
7 Crop #1: Price: $1.65 $1.65 $1.65 $1
8 Corn (bu) Yield: 75 75 75 x_
9 Receipts/Acre: $124 +E8*E7 1.65x75 =__
10 Cost/Acre: $151 $151 $151 _
11 Gross/Acre: ($27) +E9-E10 124-151 = (
Year 2 Year 3
Your Your
Values Values
1.75 $1.85
75 x 75 x
;131 = $139 =
$151 $151 -
$20)= ($12)=
H
Year 4
Your
Values
I
Year 5
Your
Values
Acres:
Gross Receipts:
Total Cost:
100 100
$12,375 +E9*E13
$15,100 +E13*E10
100
124x100
151x100
x 100 x 100 x x x_ x
$13,125 $13,875
- $15,100 $15,100 -
($2,725)+E14-E15 -27x100 = ($1,975)=____ ($1,225)= =
x__ x___
.v._.
17 Net CashFlow #1:
1 F A S T F I V E IFAS/FRE, Copyright 1988 University of Florida
2 A B C D E F G H
3 Year 1 Year 2 Year 3 Year 4
4 --------- ----.----- -.-------- ---------
5 Your Your Your Your
6 Values Values Values Values
7 Crop #1: Price:
8 Corn (bu) Yield: x x x x
9 Receipts/Acre: -
10 Cost/Acre: -
11 Gross/Acre: -
Acres:
Gross Receipts:
Total Cost:
x___ x___ x___ x___ x___
Net CashFlow #1: -
I
Year 5
Your
Values
x
F A S T F I V E IFAS/FRE, Copyright 1988 University of Florida
A B C D E F G H I
MARKET VALUE BALANCE SHEET Your Values
(Beginning Balance) Year 1 Year 2 Year 3 Year 4 Year 5
Cash
Accounts Receivable
Other Current Assets
Subtotal
1000
1890 + + + + +
12000 + + + + +
14890 = = = = =
35457
38500 + + + + +
7500 + + + + +
81457 = = = = =
96000
0 + + + + +
96000 = = = = =
192347 = = = = =
1835
46000 + + + + +
1500 + + + + +
49335= = = = =
20000
0 + + + + +
20000= = = = =
27000
0 + + + + +
27000 = = = = =
96335 = = = = =
96012
192347 = = = = =
20
Machinery & Equipment
Livestock
Other Intermediate Assets
Subtotal
Land & other L-term Assets
Other Long-Term Assets
Subtotal
TOTAL ASSETS
Accounts Payable
Operating Loans
Other Current Liabilities
Subtotal
Intermed. Loans-Yrs 7
Other Interm. Liabilities
Subtotal
LongTerm Loans-Yrs 30
Other L.T. Liabilities
Subtotal
Total Liabilities
Owner (s) Equity
TOTAL LIABILITIES & EQUITY
This publication was produced at a cost of $218.72, or 2.32 cents per copy, to provide software documentation
and worksheets for a computerized financial analysis program. 12-156-88
COOPERATIVE EXTENSION SERVICE, UNIVERSITY OF FLORIDA. INSTITUTE OF FOOD AND AGRICULTURAL SCIENCES. K.R Tefertiller,
director, In cooperation with the United Statee 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 Informalion and other services only to individuals and institu-
tions that function without regard to race, color, sex, age, handicap or national origin. Single copies of Extension publications (excluding 4-H ,
and Youth publications) are available free to Florida residents from County Extension Offices. Information on bulk rates or copies for out-of-state
purchasers 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.
|
