This document discusses topics related to evaluating the financial health and operations of a business including trends in the industry, managing accounts receivable, cash, inventory, financing options, startup assets needed, production costs, risk management, accounting practices, taxes, an exit strategy, and operational details for a poultry or dairy farm such as feed costs, housing, and equipment. It aims to analyze the financial performance and consistency of the business over time and in comparison to competitors.
This document discusses topics related to evaluating the financial health and operations of a business including trends in the industry, managing accounts receivable, cash, inventory, financing options, startup assets needed, production costs, risk management, accounting practices, taxes, an exit strategy, and operational details for a poultry or dairy farm such as feed costs, housing, and equipment. It aims to analyze the financial performance and consistency of the business over time and in comparison to competitors.
This document discusses topics related to evaluating the financial health and operations of a business including trends in the industry, managing accounts receivable, cash, inventory, financing options, startup assets needed, production costs, risk management, accounting practices, taxes, an exit strategy, and operational details for a poultry or dairy farm such as feed costs, housing, and equipment. It aims to analyze the financial performance and consistency of the business over time and in comparison to competitors.
Accounts Receivable Estimate the length of time between a sale
and collection of the related receivable. Industry statistics may provide a good indication of the typical duration you might expect gross margin percentage Asset Management how to manage cash, receivables, and inventory Financing sources: debt or equity financing? Why? Startup assets needed? Is the value of farm production above or below similar sized farms for the area? Is it consistent from year to year? Are the costs of production similar to the previous years, other farms in the area, and budget guidelines for the enterprise? Have depreciation costs been recognized and are they reasonable, given the condition of the machinery and equipment? Has the production, marketing and financial risk been well managed? Method of accounting and recordkeeping Method of paying taxes and meeting Exit Strategy? Account receivable and payable management? Mortality rate? Milk price trend? Feed Cost trend? Veterinary and Medical costs trend? Source of feed? Shelf life? Poultry Housing? Poultry Equipment?