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Farm budgeting exercise

Assignment Requirements

 

plz write is as a report style.
and there is a doc named fill form, plz fill it after you finish final paper.
Write a two-page report that should not exceed 800 words. You may use bullet points and include summary tables or figures as you deem appropriate.
it is a Urgent assignment, if you have any problem, plz let me know,thx

Assessment 2: Farm budgeting exercise

Objectives

When you have completed this assignment you will demonstrated that you are able to construct a complete budget for a farm business that clearly links and reconciles

  • a profit budget based on Gross Margins
  • opening and projected closing balance sheets
  • a cash flow budget.

Due: 23rd May 2014

Worth: [20%]

Tasks

  1. Construct a budget for the business described using the information below and the spreadsheet template available in Blackboard in the Assessments/Assessment 2 folder.
  2. Prepare a brief report on the expected performance of the business as outlined below.
  3. Ensure that you understand fully what you have done; the final examination will require you to replicate the logic of this assessment task.
  4. Write a two-page report that should not exceed 800 words. You may use bullet points and include summary tables or figures as you deem appropriate. It should include clearly identified sections that address the following points:

Report

  • Discuss the projected profitability, operating return on equity and operating return on total assets in terms of industry standards.
  • Discuss the cash flow and the drivers of it and the changes in equity and its implications for the risks facing the business.
  • Analyse the contributions the enterprises are making to the business in absolute terms and relative to their land and capital requirements.
  • Conduct a sensitivity analysis that examines the sensitivity of the results to changes in key performance assumptions (e.g. what effect does a 30% decline in projected yields have on profit, change in equity, percentage equity and cashflow; or what is the effect of a 20% decline or increase in grain or wool prices have; or what is the effect of ignoring the capital gain on land?).
  • Can you suggest a change that may result in a higher profit?
    Wheat Oaten hay Pasture

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