AECN 201 Lecture Notes - Lecture 10: Cash Flow, Balance Sheet, Business Cycle
Document Summary
Partial budgeting: only evaluating changes to the whole-farm plan. Evaluating adding a new opportunity the operation. Each section needs to be calculated and evaluated individually. Only the things that are going to change should be included. All four sections may not be filled and do not need to be filled. Don"t confuse enterprise budget and partial budget. 219: economic and accounting profit facts won"t be the same, don"t just look at accounting profit always be thinking about economic profit. Spring break to cabo: don"t want to miss out on interest that could be earned, cash is just a tool of a business/economy not needed for an economy/business to run, knowing when you have cash available. Invest that money --> earn interest on that money: make money work for you. Secured: has collateral: mortgage (always secured, car loan, typically secured by why you need the loan, unsecured: doesn"t have collateral, credit card (high interest rate because it is unsecured)
