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Great Lakes Dairy Sheep Symposium - the Department of Animal ...

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SAMPLE OPERATING CASH FLOW ANALYSIS<br />

Year one Year two Year three Year four Year five<br />

Lb. Milk used 61,600 100,000 180,600 240,800 301,000<br />

Lb. Cheese made 12,320 20,000 36,120 48,160 60,200<br />

Yield (Lb. milk/lb.<br />

cheese)<br />

SALES:<br />

5 5 5 5 5<br />

Cheese: (20% retail<br />

@ $20/lb. + 80%<br />

wholesale @ $12/lb.)<br />

167,552 272,000 491,232 654,976 818,720<br />

EXPENSES:<br />

Licenses, Permits and<br />

Fees<br />

1,200 1200 1,200 1,200 1,200<br />

Cheese Ingredients:<br />

($2.50/cwt for rennet<br />

, salt & cultures)<br />

1,540 2,500 4,515 6,020 7,525<br />

Milk ($100/cwt) 61,600 100,000 180,600 240,800 301,000<br />

Energy: (oil, electric,<br />

& wood)<br />

2,500 4,000 6,000 7,980 10,613<br />

Insurance (liability) 2,500 2500 2,500 2,500 2,500<br />

Loan ($60,000@5%x7<br />

years)<br />

5,300 10600 10,600 10,600 10,600<br />

Outside Labor<br />

($12/hr.)<br />

12,480 16,598 22,076 29,361 40,000<br />

Marketing (20% 0f<br />

Sales): (sales,<br />

packaging, shipping<br />

distribution, &<br />

service)<br />

33,510 54,400 98,246 130,995 163,744<br />

Cheese Room<br />

Supplies: (incl.<br />

cleaning supplies)<br />

500 600 800 1,000 1,200<br />

Office Supplies 300 400 600 900 1,200<br />

TOTAL EXPENSES $121,430 $192,798 $327,137 $431,356 $539,582<br />

Total Cost/lb. $9.86 $9.64 $9.06 $8.96 $8.96<br />

RETURN TO Owner's<br />

Labor<br />

$46,122 $79,202 $164,095 $223,620 $279,138<br />

PROFIT MARGIN<br />

before distribution<br />

38% 39% 43% 44% 44%<br />

Cheese Production<br />

Cost/lb. before<br />

distribution<br />

7.14 6.92 6.34 6.24 6.24<br />

22

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