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Part 4- Income Generating Projects

Table 4.2. Expenses Incurred of the Different Projects
Type of Project Expenses Incurred
1. Crops - Inputs like seeds, fertilizers, chemicals, hired labor,
Machinery/fuel & oil, irrigation fees, harvesting and
threshing fees
2. Broiler/Poultry - Stocks, feeds, veterinary supplies & services & labor
(For contract growing only labor services & additional vet.
Supplies)
3. Swine - Stocks, feeds, veterinary supplies and services, labor
4. Goat - Stocks concentrate feeds, buck service, veterinary
Supplies & services
5. Beef Cattle - Stocks, feeds, veterinary supplies & services labor
6. Tilapia - Fingerlings, chicken manure, inorganic fertilizer, Herbicide
fuel/oil, irrigation fee and transport.

6.4.1.3. Net Income/(Loss). A net income is realized if the total revenues generated during a certain
production period is greater than the total expenses incurred in the same period
in generating those revenues. However, if the total expenses are greater than
total revenues, a net loss is incurred.

6.4.2. Cash Flow Statement

Aside from determining the profitability of a project by preparing the income statement and
computing its net income during the period, the adequacy and timeliness of the project cash flows
to attain its objective should also be considered and determined through the cash flow statement.
Only then can we say that the project is financially feasible.
The cash flow statement highlights the amount of cash generated (cash flow) by the
projects operations as well as cash expenditures (cash outflow) incurred during a certain production
period.

6.4.2.1. Cash Inflows
The sales revenues generated by the project from the sale of its products in the form of
cash are considered the cash inflows during the production period. All cash sales are remitted to the
Cashier’s Office.

6.4.2.2. Cash Outflows
All the expenses incurred during the period wherein cash flowed out of the project are
considered the cash outflows. These consist of cash payments made for the purchase of the
different farm inputs like fertilizers, seeds, veterinary supplies, etc. and cash payments for the hired
labor.

6.4.2.3. Net Cash Inflows
It is the difference between cash inflows and cash outflows.

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IFSU Code