Cash Flow Reports
Ranch Vision provides monthly/current-year and annual cash-flow projections to show the cash expected to enter and leave the ranch business. These reports help evaluate whether cash will be available when operating expenses, debt payments, purchases, and other obligations come due.
Current Year Cash Flow
The Current Year Cash Flow report shows the cash projected to enter and leave the ranch business during the year following the inventory date.
Cash inflows can include Livestock Sales, Wool/Mohair Sales, Accounts Receivable, and Cash from Other Enterprises. Cash outflows can include Livestock Purchases, Cash Direct Costs, Accounts Payable, Cash Overheads/Debt Payments, and Capital Purchases. The report then shows Total Cash Inflow, Total Cash Outflow, and Net Cash Flow.
Net Cash Flow = Total Cash Inflow - Total Cash Outflow.
Cash Flow measures how well the ranch is projected to generate and manage cash needed to pay debts, fund operating expenses, and meet other cash requirements. A ranch can be profitable and still experience serious financial pressure if cash is unavailable when obligations come due.
How to use it: Use this report to anticipate potential cash shortages before they occur. If a shortage is projected, Ranch Vision can be used to test whether changes to the timing of livestock purchases or sales, capital purchases, or other elements of the management plan improve the projected cash position.
Annual Cash Flow
The Annual Cash Flow report shows projected cash entering and leaving the ranch business for each of the next five years following the inventory date.
Cash inflows can include livestock sales, wool and mohair sales, accounts receivable, and cash gross product from other ranch enterprises. Cash outflows can include livestock purchases, cash direct costs, cash overhead costs, principal paid on debt, accounts payable, and anticipated capital purchases.
How to use it: Use Annual Cash Flow to identify years with projected cash surpluses or shortages, understand how changes in the ranch plan affect cash requirements over time, and support cash-flow budgeting. These projections can also provide important information for lenders or investors.