Develop (in Excel) an enterprise budget for a proposed 2024 No-Till soybean enterprise based on the following assumptions: For this exercise I want you to develop your own spreadsheet (not use an already programmed template). You can, however, look at an already created template for guidance if you want. Yield, 40 bushels per acre; assumed price, $11.50 per bushel, soybeans to be sold in October of 2024. Costs: Herbicide application Seed Planting costs (custom) Fertilizer + application $45.00 O per acre total, half in April of 2024, and half in June of 2024 $43.00 per acre in March of 2024 $21.00 per acre in April of 2024 $45.00 per acre in March of 2024 Other Pesticides + application $15.00 per acre in July of 2024 Land Rent Operator labor and mgmt. Crop ins premium Harvest (custom) Interest Overhead $60.00 per acre in January of 2024 $25.00 per acre opportunity cost, not paid directly $18.00 per acre in August of 2024 $38.00 per acre in October of 2024 $17.00 per acre in December of 2024 $6.00 per acre in November of 2024
I am just confused about how to solve this problem because it was never addressed in class so any help would be really beneficial, thank you!
The question is based on the orginial information stated in the image.
Now, Assume that you start out on January 1 of 2024 with $35,000.00 cash in the bank, and a 0 operating loan balance and you plant 1000 acres of No-Till soybeans (all on cash rented land). Assume your enterprise budget projections are correct. Develop a monthly cash flow budget from January of 2024 through December of 2024 to track the timing of
- Develop your cash flow in the Excel template (OSU Cash Flow Blank Template).
- If you divide your total operating loan interest cost that the cash flow spreadsheet calculated for you (Hint, it is automatically assumed to be paid in October in the cash flow template) by 1000 acres, why do you get a number that is different than the $17.00 per acre estimated in the enterprise budget?
- What would be the beginning cash balance this farm would start the following season with if this projection turns out to be accurate?
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