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    Cattle Fattening Financials

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    prince kupa
    The document outlines the costs, revenues, and cash flows for a cattle farming business over three years. It shows that the initial investment is $20,167 and the business reaches profitability in the first year, with a payback period of less than one year. Over the three years, the business is profitable with net profits of $11,559 each year and cash balances increasing from $29,119 in year 1 to $52,517 in year 3.

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    Cattle Fattening Financials

    Uploaded by

    prince kupa
    756 views5 pages
    The document outlines the costs, revenues, and cash flows for a cattle farming business over three years. It shows that the initial investment is $20,167 and the business reaches profitability in the first year, with a payback period of less than one year. Over the three years, the business is profitable with net profits of $11,559 each year and cash balances increasing from $29,119 in year 1 to $52,517 in year 3.

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    Cattle Fattening Financials.xlsx

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    The document outlines the costs, revenues, and cash flows for a cattle farming business over three years. It shows that the initial investment is $20,167 and the business reaches profitability in the first year, with a payback period of less than one year. Over the three years, the business is profitable with net profits of $11,559 each year and cash balances increasing from $29,119 in year 1 to $52,517 in year 3.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    756 views5 pages

    Cattle Fattening Financials

    Uploaded by

    prince kupa
    The document outlines the costs, revenues, and cash flows for a cattle farming business over three years. It shows that the initial investment is $20,167 and the business reaches profitability in the first year, with a payback period of less than one year. Over the three years, the business is profitable with net profits of $11,559 each year and cash balances increasing from $29,119 in year 1 to $52,517 in year 3.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Item Quantity Unit Cost Total

    Land Acquisition 1 $5,000.00 $5,000.00


    Feedlot Construction 1 $1,200.00 $1,200.00
    Feeders 20 $10.00 $200.00
    Drinkers 20 $10.00 $200.00
    Company Registration 1 $500.00 $500.00
    Transport from source + licenses 20 $55.00 $1,100.00
    Transport + licences to market 20 $15.00 $300.00
    Cattle(250 Kg @ $1/Kg live weight) 20 $250.00 $5,000.00
    Repairs and Maintenance/year 1 $100.00 $100.00
    Contingency Cash 1 $175.00 $175.00
    Feed Kgs (1 cycle advance) 21600 $0.27 $5,832.00
    Veterinary Supplies (1 cycle advance) 20 $10.00 $200.00
    Salaries (1 cycle advance) 1 $360.00 $360.00
    Total $20,167.00
    Income Statement Year 1 Year 2 Year 3
    Revenue
    Cattle Sales $67,760.00 $67,760.00 $67,760.00
    Cost of goods sold $49,728.00 $49,728.00 $49,728.00
    Gross Profit $18,032.00 $18,032.00 $18,032.00
    Operating Expenses
    Salaries $1,440.00 $1,440.00 $1,440.00
    Depreciation $140.00 $140.00 $140.00
    Water (Borehole) $240.00 $240.00 $240.00
    Advertising $0.00 $0.00 $0.00
    Repairs and maintenance $100.00 $100.00 $100.00
    Contingency $700.00 $700.00 $700.00
    Total Operating Expenses $2,620.00 $2,620.00 $2,620.00
    Net Profit Before Tax $15,412.00 $15,412.00 $15,412.00
    Tax (25%) $3,853.00 $3,853.00 $3,853.00
    Net Profit After Tax $11,559.00 $11,559.00 $11,559.00

    Variable Costs per Cycle Quantity Unit Cost Total


    Transport + licenses from source 20 $55.00 $1,100.00
    Cattle(250 Kg @ $1/Kg live weight) 20 $250.00 $5,000.00
    Feed Kgs 21600 $0.27 $5,832.00
    Veterinary Supplies 20 $10.00 $200.00
    Transport + licenses to market 20 $15.00 $300.00
    Total $12,432.00
    Break-even Analysis Value Payback Period Value
    Selling Price/Unit $847.00 Initial Investment $20,167.00
    Variable Cost/Unit $621.60 Net Cash flow Year 1 $29,119.00
    Fixed Costs/year $2,620.00 Payback Period 0.69
    Break-even point 12
    Pro Forma Cash Flow
    Year 1 Year 2 Year 3
    Opening Balance $0.00 $29,119.00 $40,818.00

    Cash Sales $67,760.00 $67,760.00 $67,760.00


    Subtotal Cash from Operations $67,760.00 $67,760.00 $67,760.00

    Additional Cash Received


    Start-up Capital $20,167.00 $0.00 $0.00
    Subtotal Cash Received $20,167.00 $0.00 $0.00

    Cash Expenditures
    Cattle,feed,vet,transport $49,728.00 $49,728.00 $49,728.00
    Operating Expenses $2,480.00 $2,480.00 $2,480.00
    Subtotal Spent on Operations $52,208.00 $52,208.00 $52,208.00

    Additional Cash Spent


    Taxes $0.00 $3,853.00 $3,853.00
    Loan Repayment $0.00 $0.00 $0.00
    Bank Overdraft Repayment $0.00 $0.00 $0.00
    Purchase Fixed Assets $6,600.00 $0.00 $0.00
    Subtotal Additional Cash Spent $6,600.00 $3,853.00 $3,853.00

    Net Cash Flow $29,119.00 $11,699.00 $11,699.00


    Cash Balance $29,119.00 $40,818.00 $52,517.00
    Year 1 Year 2 Year 3
    Long Term Assets
    Land $5,000.00 $5,000.00 $5,000.00
    Housings $1,200.00 $1,200.00 $1,200.00
    Equipment $400.00 $400.00 $400.00
    Accumulated Depreciation -$140.00 -$280.00 -$420.00
    Total Long Term Assets $6,460.00 $6,320.00 $6,180.00
    Current Assets
    Cash $29,119.00 $40,818.00 $52,517.00
    Accounts Receivable $0.00 $0.00 $0.00
    Inventory $0.00 $0.00 $0.00
    Other Current Assets $0.00 $0.00 $0.00
    Total Current Assets $29,119.00 $40,818.00 $52,517.00
    TOTAL ASSETS $35,579.00 $47,138.00 $58,697.00

    EQUITY AND LIABILITIES


    Equity
    Share Capital $20,167.00 $20,167.00 $20,167.00
    Retained Earnings $11,559.00 $23,118.00 $34,677.00
    Total Equity $31,726.00 $43,285.00 $54,844.00
    Liabilities
    Current tax payable $3,853.00 $3,853.00 $3,853.00
    Accounts Payable $0.00 $0.00 $0.00
    Other Liabilities $0.00 $0.00 $0.00
    Total Liabilities $3,853.00 $3,853.00 $3,853.00
    TOTAL EQUITY AND LIABILITIES $35,579.00 $47,138.00 $58,697.00

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