Cash Flow Statements

Question 1

Cash Flow Statement

Answer 1

all cash coming in and out, both on and off farm

Question 2

Cash Inflow/Outflow Categories

Answer 2

Operating (cash farm income and expenses)
Investing (capital assets)
Financing (loans)
Nonfarm
Cash on hand

Question 3

When are Cash Flow statements conducted?

Answer 3

monthly, quarterly, and annual basis

Question 4

For net cash flows to equal 0, what must occur?

Answer 4

Cash inflows must equal cash outflows

Question 5

What does a cash flow statement tell you?

Answer 5

If you have enough money in the bank to pay the bills but not for farm profitability