A microcomputer program for projecting annual cash flows, debt repayment ability and proforma financial statements
LaDue, E.L.; Cook, D.B.
AE Research, Department of Agricultural Economics, Cornell University (86-24): 93
1986
Document Number: 434219
Financial management of the farm business frequently requires projecting cash flows, which are used by both farmers and lenders to assess the viability of potential operating plans, to determine repayment ability and assess financing alternatives. Using historical data from the farm business, the publication describes a computer program designed specifically to: project operating cash flows for the coming year; sustainable debt repayment ability and cash flows of an average future year; and cash flows and prepare a proforma (projected future) income statement and balance sheet for the coming year. The first section specifies the model's technical characteristics; the second describes the instructions for input, explains the input data to be entered and provides a completed input form to illustrate proper entry; Section 3 provides instructions on running the computer program, with information on how to load the program on the computer and on the commands used in running the model; and section 4 describes the output generated by the model and the logic used to calculate specific items.