Texas

A Guide to the Financial Analysis of Shrimp

Farming, 1999
(Spread Sheet for Micro Computers)

Wade L. Griffin, Professor

Department of Agricultural Economics
Texas A&M University
College Station, Texas 77843-2124
Tel. (409) 845-4291; Fax (409) 845-4261
and

Granvil D. Treece, Aquaculture Specialist

Sea Grant College Program
Texas A&M University
1716 Briarcrest, Suite 702
Bryan, Texas 77802
Tel. (409) 845-7527; Fax (409) 845-7525
Email: gtreece@unix.tamu.edu

TAMU-SG-99-502
June 1999

. . Publ;cal;on supported ;n part by Instilutional Granl NA86RGOO58 10 Texas Sea Granl College Pcogrum fcom
II the National Sea Grant Program, National Oceanic and Atmospheric Administration, U.S. Department of
'~,"=.!!J' Commerce. 1999 Texas Sea Grant College Program. All rights reserved.

$25.00
Texas Sea Grant College Program
I716 Briarcrest, Suite 603
Bryan, TX 77802

TAMU-SG-99-502
June 1999
NA86RG0058
A/F-l

Introduction
In starting a shrimp culture business, you should begin with a business plan. The business plan
should contain a statement about the business and a financial plan. The statement about the
business should contain the following:
1. A description of your proposed venture.
2. A description of the market where your product will be sold and your marketing strategy.
3. An analysis of significant competitors.
4. A detailed explanation of the production processes and limitations.
5. A description of the organizational structure, showing how your firm will operate and listing
all personnel.
6. A description of external financing.
7. A development schedule showing the timing of the venture's development and critical dates
(Hanson et al. 1991).
Once the basic business plan has been presented, it is necessary to demonstrate the economic
feasibility over the planning horizon of the venture. Banks or investors require this type of
analysis to determining the financial success of the venture. The purpose for this program is to
assist the user in conducting an economic feasibility analysis of a shrimp farm. To achieve this
objective a financial analysis is conducted for a hypothetical intensive shrimp farm on the Texas
coast. The hard copy of the analysis accompanying the diskette shows the results of our analysis.
The diskette should be used to further "customize" the user's own business plan and financial
analysis by making appropriate substitutes, mainly in Tables lthrough 3. Note: Make changes in
either Gray cells only for Excel spreadsheets or Blue cells only for Lotus spreadsheets.
This financial model for a shrimp farm is developed in a fully integrated spreadsheet; that is,
all seven tables presented are fully integrated. For example, if you want to change your stocking
density, the model will automatically make all the changes to your cash flow, balance sheet,
income statement, and rate of return.
The seven tables are:

TABLE 1. Unit Cost, Production, and Financial Assumptions

TABLE 2. Construction and Equipment

TABLE 3. Farm Production, Inputs Used and Management

TABLE 4. Capital Transactions and Various Financial Assumptions

TABLE 5. Pro Forma Cashflow Budget

TABLE 6. Pro Fonna Balance Sheet

TABLE 7. Pro Fonna Income Statement

Tables 1,2 and 3 allow the user to "customize" the analysis to the individual's country and

farm. The user enters data in Tables 1,2 and 3 only. Input is optional in Table 3 on lines 14, but
required on lines 51-56. If you are using an Excel spreadsheet, then enter data in the GRAY cells
only. If you are using a Lotus spreadsheet then enter data in the cells that have the BLUE numbers only. All other cells contain formulas. Do not enter data in these cells or change the formulas because each formula is coupled to another entry and it may cause problems. The worksheets
are protected so that it is difficult for the user to change the formulas, but the worksheet can be
unprotected for formula changes. The best approach is to make a copy of this program before the
user starts making entries and set a copy aside in case an error occurs and the user must start
again. One of the first mistakes that most users make is to place data in the white or lighter cells
where the formulas are, and the result affects the remainder of the program. To print with most
computers, highlight the table, set print area, look at page set up and print preview and adjust the
size to fit the table on one page and print. Some of the tables are too large for one page causing
the printed table to be too small to read if printed on one page; therefore some tables will need to
be printed on several pages. User can move from one table to the other by clicking on the table
number at the bottom of the worksheet.

Explanation of the Tables

Table 1. Unit Costs, Production, and Financial Assumptions
The information in Table 1 is used to construct the remaining tables. Most unit costs are selfexplanatory. Specific costs vary with each user and with time. For example, a shrimp processor
contemplating putting in a shrimp farm would not have to pay as much to have the shrimp from
the farm processed; therefore, that individual's cost for shrimp processing might be less than one
without a processing plant. The same would be true for feed from a feed mill or larvae from a
hatchery; generally the two most expensive operating costs. If the group was fully integrated for
example, then theoretically they would be paying a lower rate for postlarvae (El), feed (E7), ice
(EIO) and processing (Ell).
The repair rate for storm damage (E26) is the average annual rate to charge per dollar worth of
buildings and pond construction damaged by a storm. This is necessary since the hypothetical
farm is located on the coast and is therefore subject to tropical storms and hurricane damage. The
area may not have a storm but every 10 years, then one must determine what will be the cost to
repair the damages on a percentage basis spread out and averaged over 10 years. Utilities (E27)
are those other than pumping water into the ponds and aeration of ponds. Pumping and aeration
are treated separately. Fuel (E3I) is for vehicles including tractors.
The user gives the model the cost of the land, size of the farm and size of the ponds in Table 2.

Then the total surface hectares and total hectares in the farm are calculated by the model using
the data provided by the user in Table 1 (E34; Ratio of surface ha. to total ha.). This formula
allows for dikes, roads, buildings, and then calculates the pond surface area of the farm.
The stocking density per hectare is supplied by the user (E36). Stocking density per pond and
per farm are then calculated by the model and appear in Table 3. A survival rate of 74 percent
(E37) is estimated and a stocking density of 400,000 per ha (E36) will yield 296,000 shrimp per
ha at harvest (Table 3, FI5-015). Assuming a 0.01 g animal is stocked (E39), the overall growth
rate is 0.86 g per week (E40), and the shrimp are in the pond for 20 weeks (E38), you will harvest 17.21 g shrimp (E41), which is calculated by the model (DO NOT MAKE ENTRY IN THIS
CELL). This will be 5,094 kg of shrimp (heads-on) per hectare per crop (Table 3, Columns F16016) which is 63,168 kg (heads-off), for the entire farm per year (Table 3, FI9-019). Once the
model determines production then fertilizer, feed, aeration, pumping, and ice are functions of kg
of shrimp produced. Important data entries are made by the user in E4-E40. Again, do not make
an entry in E41 [Harvest Size (g)].
Fertilizer information is entered in E46-E56. The data in E58, E59 and E60 are calculated by the program (DO NOT MAKE ENTRY INTO THESE CELLS). The fertilizer
amounts fqllow those recommended in Villalon (1991).

The Food Conversion Ratio (FCR) found in E6l is the number of pounds of feed required to
produce one pound of head-on shrimp or the number of kg of feed to produce one kg of shrimp.
The average FCR is 1.6: 1, but can be worse (4: 1 or higher) if feed, feed management, and natural
productivity are not optimum. We have recently heard of FCR values as good as 0.6: 1 in Peru
using feeding trays to offer the shrimp feed, with average FCRs of 0.9:1, but they were obtained
with a 50 percent anchovy meal diet or very expensive diet (Nicovita Feed).
The aeration ratio (E62) provided by the user is defined as KWHlkg of shrimp. This ratio can
be determined form the number of HP per acre used. For intensive purposes (depending upon the
stocking densities and pumping or water exchange levels planned) artificial aeration usually
ranges from one HPlha up to 10 HPlha and what would be considered super-intensive artificial
aeration of 12+ HPlha. would not be uncommon. The typical paddlewheel (Taiwanese) produces
1.60 SAE (kg02lkwh); aspirator/injector =1.58 SAE; Vertical pumps = 1.28 SAE; Pump sprayer
= 1.28 SAE; and Bottom Diffusers 0.97 SAE (kg02lkwh). For our model we have determined
that the ratio of aeration (KWHlkg shrimp) is 2.6.
E63 is pumping ratio, and for our example farm used in this model we have determined that
the ratio of pumping (KWHlkg shrimp) is 3.2. E64 is ice ratio, and a standard rule is 2 parts ice
to 1 part shrimp; therefore, we have placed the number 2 in the gray cell.
Financial information is provided by the user in E67 -E77. Most of these entries are straightforward and can be placed here, depending upon your specific circumstances or projections. Borrowing as a percent of total investment capital needs (E69) is the percent of the money for capital

needs that will be borrowed. For example, the user may have enough money to pay for half of
the construction and equipment to put the farm in operation and plans to borrow the other half of
the capital that is needed. This cell does not include annual operating cost such as feed, labor,
etc. The inflation per year (E73), opportunity cost of capital (E74), and investor's risk factor
(E75) are used to calculate net present value (NPV) of the users investment found in Table 5 in
F57 and F59. The discount rate used in calculating NPV is calculated as E73+E74+E75. The
inflation rate should be the current inflation in the country where the aquaculture farm is being
built. The opportunity cost should be the rate of return the user would receive if the money were
invested in a secure investment such as bonds rather then the aquaculture farm. The risk factor is
the rate of return the user must have above the opportunity cost for investing in the aquaculture
farm rather then in the alternative secure investment. The intermediate factor in E78 is a factor
used by some banks (DO NOT MAKE ENTRY IN THIS CELL).
The average price received for the shrimp produced (in US$/kg) is entered in E81. In C86-C97
the user has the opportunity to predict the future price received for the shrimp. There is historically a cyclical movement of shrimp prices, usually going up for a few years, then down, etc. If
there is no cyclical factor or inflation wanted or foreseen then the user puts 1.0000 in C86-C97; a
drop in price would be a fraction below 1.0000 or an increase above the current would be 1.0000
+ whatever level above the current price received is expected. D86-D97 will show the adjusted
price of shrimp each year as a result of the numbers placed in C86-C97. E86-E97 shows the cost
of inflation in percent for the year and is directly affected by the inflation percent used in E73.
Dl00-D101 and E100-E101 allow the user to place specific tax information in the cells, as do
C105-E105, C106-E106 and C107-E107 (the dark cells).

TABLE 2. Construction and Equipment Needs

The capital investment list is a detailed listing of investment items on a year by year basis.
General categories are used such as land, pond construction, pond pumps, and major pond
equipment. Items within these general categories are listed separately. Individual items such as
tractors, gates, computers, feed silos, and nets are provided for purposes of informing your
banker or investors about depreciation (Economic Life), maintenance, extent of involvement, and
collateralization of assets. A miscellaneous cost is added to each general category because costs
are routinely underestimated, and this is called "contingency", and is usually 10 percent. Again,
do not make an entry into these cells because they are not in the shaded or designated areas to
make entries; however the percent can be changed if user knows how to change the formula.
Starting at the top of table 2, the first input is the cost of land. Place cost in US$/ha in E4 (1 ha =
2.47 ac). In G6-R6 the user places the number of ponds constructed each year and the average
surface hectares per pond in G7-R7. These two lines give you the option to build different numbers and different size ponds each year. E14 for example provides an entry for cost of earth
moving and the entry placed here in this model is US$ 0.90/cubic yard. A cubic meter is very

close to a cubic yard, so you could enter the same number here if you only know the cost per
cubic meter. A general rule of thumb is that it takes at least 2,500 cu. yards of dirt moving for
each acre of pond, but the smaller the pond the more dirt is moved because more dike area is
required in relation to pond bottom. Costs of products are supplied by user from lines 8-99,
ending with the entry for the cost of a pH meter, and with the number of meters planned over
time. The exception is the contingencies. These are calculated on a percentage of the total in each
column.
Usually, land, pond construction, pumps, and major pond equipment are the most significant
capital investment items. Table 2. (Continued) Value of Construction and Equipment Needs, does
not require input from user, but shows total construction costs, etc. Tables 2 (Continued) is the
same as Table 2, but the total costs have been calculated on the continuation. One can look back
at the first part of Table 2 and compare the numbers. Line 4 Land (ha.) in Table 2 corresponds to
Line 4 (Table 2 Continued)= $126,000. The total cost of construction and equipment can be seen
by year in line 102 of Table 2 (Continued). The example is set up with 36 hectares being purchased and constructed in year 2 (H4) at a cost of $3,500 per hectare (E4). This yields a total cost
for land of $126,000 (U4). Additional hectares could be purchased in later years by entering the
number of hectares to be purchased each year in line 4 (I-R). An alternative to buying land as
needed is to purchase all the land up front. To do this you would enter a price of $0 in cell E4 but
you would continue to enter the hectares when they are needed in cells H4-R4. The total price of
the land can be entered in T4 (which is the only cell in the Table 2 (Continued) where an entry is
allowed to custom fit the user's needs. This way the amounts of hectares are bought into production in the year they are needed and the total cost for the land is incurred in year 1 if needed to be
shown on the spread sheet that way.

TABLE 3. Farm Production, Inputs Used and Management

Most of Table 3 is produced from information in Tables 1 and 2. It shows how many shrimp
are produced, as well as inputs that are directly related to shrimp production, such as, stocking,
feed, etc. The user in this table makes no entries to the cells, except on line 14 (columns E-O)
and lines 51-56 (columns D-O). Line 14 is optional to the user to add an adjustment factor to
crop production, and can be either positive or negative. We chose not to make an entry and leave
the additional adjustment factor to crop production at 0.0 percent. Lines 51-56 allows the user to
determine different types of management that will be employed and in the year it will be employed. For example, the farm could start with a general manager in year 1 and hire a pond
manager in year 3. The user must enter number of managers by type each year. This allows the
user to hire special type management in early years and then get rid of them in later years when
they are not needed. The program should do all of the calculations otherwise, giving the numbers
broken down in various ways (number of shrimp harvested/crop; Kgs harvested/ha/crop, headon; Kgs/farm/yr.!crop, head-on; Kgs/farm/yr. (heads-on); Kgs/farm/yr. (heads off), and so forth.

TABLE 4. Capital Transactions and Various Financial Assumptions

The information in Table 4 is derived from previous tables (1-3) and shows the capital investment over time. It also shows the depreciation schedule, book value of capital equipment, sale of
used equipment and information related to shrimp prices and inflation. Straight-line depreciation
is used in this analysis and old equipment is sold for its book value. The cash flow (Table 5),
balance sheet (Table 6), and income statement (Table 7) use information contained in Table 4
directly or indirectly. Do not make any input into this table.

TABLE 5. Pro Forma Cashflow Budget

This financial statement, shown in Table 5, is intended to indicate the cash flows of the operation and its ability to meet cash obligations (operation receipts or incoming money and operation
costs or money going out to pay the bills). Each year of the planning horizon should be included
in the business plan. The cash budget should also indicate the amount and timing of cash flows to
and from investors and financial intermediaries. The program gives receipts and total cash
inflows. Operating Expenses are presented in detail by year and totaled as TOTAL CASH OUTFLOW (line 36). Some of the more important data are considered to be the Net Present Value
(NPV) and the Internal Rate of Return (IRR) or "bottom line" seen in lines 57-60. The NPV and
the IRR are projected 7 years ahead, then 12 years ahead. The IRR for the first 7 years is 46.8
percent (F58), which is a good return. The IRR over the 12-year period is 45 percent (F60).
Borrowing and loan payment information are given in the last part of this table. Further explanation of each is follows:

Profit and Financial Return

Net present value (NPV) and internal rate of return (lRR) measure a firm's profitability (Table
5, F57-F60). The NPV of an investment is the sum of the present values for each year's dividends to investors including ending equity, less the cost of the investment. The discount rate
which is used to calculate NPV, has three components: uncertainty (risk associated with investing
in a shrimp farm), alternative uses of capital (opportunity cost of capital), and inflation (Lee et al.
1988). Each individual has his own risk factor depending on his willingness to take a risk. The
individual risk factor or as listed on the table as "Investor's Risk Factor" is initially set at 20
percent (Table 1, E75), but the user can change it. If the NPV is equal to or greater than zero, the
firm is considered an economic success (i.e., profitable). If the NPV is less than zero, the firm is
not an economic success. In other words, the NPV of the project is a measure used to indicate
whether the project is earning some predetermined rate of return. The future cash flows of the
aquaculture business are converted into dollar values as if they had made some specific return
from the time the initial investment was made. These values are summed and the initial investment is deducted to derive the NPV of the project. If the project is positive, the user has earned at
least the rate of return you projected, if negative the user did not reach the projected rate of
return.

The IRR is the discount rate, which will make the NPV equal to zero. It is the rate of return to
the equity capital at which the investor would be indifferent to investing in the shrimp farm as
opposed to the next best alternative use for his equity capital. The user must compare the IRR
generated by the model with his required rate of return. The investor's required rate of return =
uncertainty + opportunity cost + inflation. If the IRR is greater than the user required rate of
return the investment is an acceptable investment. Explained a different way, the rate of return or
profit expected on the project = IRR. If an investor has the money for the investment and does
not need to borrow it, the investor may prefer to keep the initial investment as small as possible
and borrow a portion for the investment. A small investment would generate a higher IRR (provided the IRR is greater then the interest rate of the loan) and shorter payback period (which is
the amount of time it takes to repay the initial investment from cash earned by the business).

TABLE 6. Pro Forma Balance Sheet

The purpose of the balance sheet in Table 6 is to show the financial position of the venture at
end of the year for each year in the planning horizon. The assets, liabilities, and net worth of the
venture appear on one sheet. Do not make entries in this table; the model should calculate all of
the information.

TABLE 7. Pro Forma Income Statement

Break-even analysis
Break-even analysis (Table 7) provides a good indication of the minimum levels the venture
must achieve to meet its obligations (pay its bills). There are two types of break-even analysis:
break-even production and break-even price. Break-even production is the level of production
that achieves zero profit when price and other factors are held constant. Break-even price is the
price that must be received to achieve zero profit when production and other factors are held
constant.

Sensitivity Analysis
An important ingredient in any financial analysis is to examine alternative scenarios. What if
survival is less than expected? What if the price of shrimp is less than expected? What if feed
cost more than expected? In building the initial financial plan, you should use in your best
estimate on all data. Because future events do not always turn out as expected, however, it is
advisable to look at some scenarios where the user has less than average or expected results. As
an example we used a survival rate of 74 percent in Table 1, E37. What if the survival rate turned
out to be only 40 percent? If you enter this survival rate instead of 74 percent the user will see
that it makes a big difference with the IRR; instead of 47 percent and 45 percent returns the
results are -4 percent and -1 percent IRR, which would not be a good return. If the user is unsure
of the actual survival rate (or any other critical value) that is likely to be achieved, then the user
should proceed with great caution.

As a general rule of thumb in shrimp farming, one should put everything they can possibly
think of on paper that will cost money (as we have tried to do in this model) and then double it.
Then they should count on losing at least one full crop during the life of the shrimp farm (maybe
more). By doing these two things the IRR will come closer to being realistic. The 47 percent IRR
after 7 years and 45 percent IRR after 12 years are as accurate as one can make them without
being able to see every event in the future. No one can predict a crop loss from storm damage or
disease accurately. They are as accurate as possible because they have not factored in the unknown (the hurricane or 100 year storm that demolishes the farm or the virus that kills the crop).
It takes most shrimp culture enthusiasts some time to realize that shrimp aquaculture is just
another type of farming, and shrimp culture operations face many of the same problems that
other farmers face (weather, diseases, birds and other predators, etc). Shrimp farming is farming,
and is considered a high-risk venture. For additional literature on shrimp farming contact Texas
A&M University Sea Grant, and for additional information on hatchery spread sheets or financial
analyses for a hatchery, consult Treece and Fox (1993), which can be ordered from the Texas Sea
Grant web site at http://texas-sea-granttamu.edu/.

References
Hanson, 1. S., W. L. Griffin, D. A. Klinefelter, and D. U. Fisher. 1991. Developing an Aquaculture Business Proposal. Faculty Paper Series. Department of Agricultural Economics, Texas
A&M University, College Station, Texas 77843-2124.
Lee, W.P., M.D. Boehlje, A.G. Nelson, and W. G. Murray. 1988. Agricultural finance. Iowa
State University Press, Ames, Iowa.
Treece, G.D. and 1.M. Fox. 1993. Design, Operation and Training Manual for an Intensive

Culture Shrimp Hatchery, with emphasis on Penaeus monodon and Penaeus vannamei.
Texas A&M University Sea Grant College Program Publication TAMU-SG-93-505. 187
pages.
Villalon, l.R. 1991. Practical Manual For the Semi-intensive Culture of Marine Shrimp.
Texas A&M University Sea Grant College Program, Publication TAMU-SG-91-501. 104
pages.

TABLE 1. Unit Cost, Produetlon, and Flnanelal Assumptions

Unit Costs
Postiarvaa ($/1000)
Fartilizar. Uraa ($/kg)
Fartillzar. Tripla Phosphata
Faad ($/kg) (bulk rata)

($/kg)

Pumping Utilities ($IKWH)

Aaraflon Utilities ($/KWH)
Ica ($/kg)
Processing ($/kg)
Packing & Grading ($/kg)
Full Time labor ($Iperson)
Numbar Ponds par Full Time labors
Typa 1 Management Salaries ($Iperson)
Typa 2 Managament Salaries ($Iparson)
Typa 3 Managamant Salaries ($Iperson)
Typa 4 Managemant Salarias ($Iperson)
Type 5 Management Salaries ($Iperson)
Typa 6 Management Salarlas ($Iperson)
Accountant Fees ($Iyaar)
legal Fees ($/year)
Insurance Pramlum ($/year)
Repair Rale ($1$ of Buildings)
Rapalr Rata ($1$ of Mach. Equip. Ponds)
Rapalrs Rata Storm Damaga
Utllnles: Rale per Square Fool of all Buildings ($/year)
Supplies: Rale par Square Fool of all Buildings ($/yaar)
Property Tax Rata (per $)
Price Per Gallon of Fual (gasoline)
Average Gallons Fual UsadIVahlcleNear

Ratio of surfaca ha 10 total ha

Production Assum tlons
Stocking Denslly (1000tha)
Survival Rata
Weaks Shrimp in Pond/crop
Siza Stocked (g)
Growth Rate/waek (g)
Harvesl Siza (g)
Number of crops per year
Convarsion: headon to haadoff
FERTIUZER
Inllial Application (kgtha)
Urea
Triple Phosphate
While Pond is filling (kg/ha)
Urea
Triple Phosphate
Final filling of the pond (kg/ha)
Urea
Triple Phosphate
Maintenance lavel (kg/ha)
Urea
Triple Phosphate
TOTAL
Urea
Triple Phosphata
Kgs Fert.tha (From Above)
Food Conversion Ratio
Aeration Ratio (KWH/kg shrimp)
Pumping Ratio (KWHlkg shrimp)
Ice Ratio (kgs ice/kg shrim
Flnanelal Assumptions

t82.00

Financial Assumptions

Interest Rates
Short Term
Intermediate Term
Borrowing as % of Total Investment Capital Needs
Average Number Months for Operating Loan
Length of Intermediate Loan (Years)
Minimum Cash Reserve at End of Year
Inflation per Year
Opportunity Cost of Capital
Investor's Risk Factor
Property Tax Rate
Insurance Premium
Intermediate Factor

Year
1
2
3
4
5
6
7
8
9
10
11
12
Tax Information
Self

Tax
Social Security
Medicare

Income Tax

Cyclical
Factor to
adjust Shrimp
Prices

3.8897

Adjusted
Price
of Shrimp
Received
9.29
8.39
10.79
9.29
8.39
10.79
9.29
8.39
10.79
9.29
8.39
10.79

Costs
Inflation
(relative to
the
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

TABLE 2. Construction and Equipment Needs

EGO.
LIFE

Number of ponds constructed

Average Surtace Hectares/Pond
Concrete Inflow
Concrete Outflow
Concrete Box
Water Gale Valve
Pipe
Eletrical
Earth Moving
Drainage Culvert
Survey (to Permit)
11,269

SUBTOTAL
POND PUMPS

Pump/Motor/3,050 gpm
Pipes(per ft.)
Pump Station
Contingency

6 ,336

SUBTOTAL
MAJOR POND EQUIPMENT
Paddle Wheels
Harvest Machine
Tractor/42HP/4Wheel Dr.
Truckl1 Ton
Feed BoaVMotor/Blower
Feed Wagon/Augar
Fuel Tank
Truck/Half-Ton
Light Vehicle/Honda
Contingency

Quantity
Year 2

LAND (ha)
POND CONSTRUCTION

Engineering Design
Contingency

Quantity
Yaar 1

6,220

Ouantity
Year 3

36

Quantity
Year 4

Quantity
Year 5

Quantity
Year 6

Quantity
Year 7

Quantity
Year 6

Quantity
Year 9

Quantity
Year 10

Quantity
Yaar 11

Quantity
Year 12

IMPLEMENTS
0..0

Orag
Silo
BoaVMotor

Mower
Contingency

B43

SUBTOTAL
PONe EQUIPMENT

WaaeSaater
Lawn mower
Cast Nats

Wad",..
SHc:hiOiscs
Fin,r and Boards

Contilgancy

BS

SUBTOTAL
SHOP EQUIPMENT
Vica
Air Compressor
Bantry Charger
Jack 12 Ion

Whe.lbarrow

Hand Toots
Genaral Supplies
Generator (Small)
Hand Orill 318
Drill 112
Clmd.rSaw

ladder
ConUngancy
SUBTOTAL
OffiCE
O.M&Ch.it

317

Blackboard

Booklhelves
Filing Cabinet
IBM Computer System
Typewriter
Tal.phona
SUd. Projector
XerollC Machine

C.lc:ulator
Prinle,
Contingency

516

SUBTOTAL
BUILDINGS
Ollie. l.q. 11.)
Shop la . It)
F a Shod Is. II)
Con~.ncy

2,4g0

SUBTOTAL
MISCELLANEOUS EQUIPMENT
02 Mata,.
R.fr.clamstar

Tnpl. Beam Balance

Microscope.
Hemacylomatar
MiscaPanaous
AIr CondlUonaf
Relrlgerator

PH Mata,
Contingency
SUBTOTAL

572

TABLE 2. IConUnuedJ VDlue

Vaw
Vaart

c:tiliI

V.....

0' Con.truc:Uon and Esulpmenl Nuda

YUle
Vaar3

V..,2!

Vail.
V ., 4

12.,000

Value
Via'S

Vau.
VrB

Value

Value

Valu.

V ., 7

Vear I!I

Vaa,9

Value
V ., 10

V.,e

Value
Vear 12

Vaal 11

5,000

o
20,000
11,000
3,000
",0011
5",077
3,BOD
7,000
5,000
11,2B9
12395'(

33,000
20,355
10,000
8,338
al1l91

15,000
1B,OOO
11,000
13,100

15,300

, 300

2,000
D
2,400
.,220
SI ,(20
3,000
1,200

'(,225
043
I 288

250
300
100
3D
2DD

aD
.00
50
'00
00
1,000
SOD
0
120
350
150
50
317
3 ~I7
250
300
300
2,DOD
SOD
SOD
0
SOD
75
750
51.
5 al3
11,700
9,200
",ODD
2.490
27 390
1,100
SOD
00
.00
70
2'.
2.000
300
SOD
572
6,288
8,300

441.157

0
0

TABLE 3, Farm Production. In ub: Uaed and Mana

Farm Production

Year 1

nl
Year 2

Vear3

Surface Hectares Added this year

Total Surface Hectares in production
Ponds Added this year

Total stocking for Farm/Crop

Number Harvested/halcrop

Kg. Harvo,tadlha/crop (head-on)

Kgs/Farm/year/crop (head-on)
Kgs/Farm/year (head-on)
KQ,/Farm/vear (head-off)

400
800
8,000
8,000

400
800
8,000
8,000

0
0
0
0
0

296,000
5,094
101,883
101,883
63,168

0
0
0
0

YearS

Year 9

Year 11

Year 10

Year 12

20
0
10

0
20
0
10
2

0
20
0
10

0
20
0
10

0
20
0
10

0
20
0
10

0
20
0
10

400
800
8,000
8,000

400
800
8,000
8,000

400
800
8,000
8,000

400
800
8,000
8,000

400
800
8,000
8,000

400
800
8,000
8,000

400
800
8,000
8,000

400
800
8,000
8,000

296,000
5,094
101,883
101,883
63,168

296,000
5,094
101,883
101,883
63,168

296,000
5,094
101,883
101,883
63,168

296,000
5,094
101,883
101,883
63,168

296,000
5,094
101,883
101,883
63,166

296,000
5,094
101,883
101,883
63,166

296,000
5,094
101,883
101,883
63,168

296,000
5,094
101,883
101,883
63,168

296,000
5,094
101,883
101,883
63,168

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

182
364
3,640
3,640

0
0
0
0

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

19
37
372
372

0
0
0

8,151
16,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
18,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
16,301
163,013
163,013

8,151
18,301
163,013
163,013

0
0
0

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

13,245
26,490
264,896
264,896

0
0
0
0

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

16,301
32,603
326,026
326,026

0
0
0
0

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

10,188
20,377
203,766
203,766

0
0
0
0

Average Stocking/Pond/Crop
Total stocking (or Farm
Harvesting
Adjustment Factor to Crop Production

20
0
10

Vear7

Year 6

0
20
0
10

0
0
0
0

Total Ponds In production

Average Surface Halpond
Stocking
Stocking Density (1 DOOlha)

Year 5

Yaar4

20
20
10
10

~.

~.

'

,-

.~;

' .,

r' ,-

' ",#

Fertilizer: Urea

Kgs Fert.lha/Crop
Kg, FertJPond/Crop
Kg' Fert./Farm/Crop
Kgs Fert./Farm
FertiliZer: Trlpf. Pho.phal.
Kgs Fert./haiCrop
Kgs FertJPond/Crop
Kg. FertJFarm/Crop
Kgs FertJFarm
Feed
Kgs FeadihaiCrop
Kg' Feed/Pond/Crop
Kgs Feod/Farm/Crop
Kgs Feed/Farm
Aeration
KWH/halcrop

KWH/Pond/Crop
KWH/Farm/Crop
KWH/Farm

a
a

Pumping A.sumptions

KWH/ha/Crop
KWH/Pond/Crop
KWH/Farm/Crop
KWH/Farm
Ice Assumptions

Ice/ha/Crop
Ice/Pond/Crop
Ice/Farm/Crop
Ico/Farm

Number or Managers by Type

Type 1
Type 2
Type 3
Type 4
Type 5
T 86

TABLE 4. Capital Transactions and Various Financial Assumptions

Capital Item
Eco. Life
Year 1
Year 2
land
0
126,000
Pond Construction
15
o
123,954
Buildings
20
27,390
o
12
Machinery & Equipment
o
850
88,951
10
o
Machinery & Equipment
o
7
12,324
Machinery & Equipment
20,500
Machinery & Equipment
6
o
30,614
5
Machinery & Equipment
o
8,300
Machinery & Equipment
4
o
10,575
Machinery & Equipment
3
o
8,300
441,157
TOTAL CAPITAL
Salvage Rate
Depreciation Schedule
Pond Cons. (15)
Buildings (20)
Mach. & Equip. (12)
Mach. & Equip. (10)
Mach. & Equip. (7)
Mach. & Equip. (6)
Mach. & Equip. (5)
Mach. & Equip. (4)
Mach. & Equip. (3)
TOTAL DEPRECIATION
Book Value of Capital before sale of old
Land
Pond Cons. (15)
Buildin9s (20)
Mach. & Equip. (12)
Mach. & Equip. (10)
Mach. & Equip. (7)
Mach. & Equip. (6)
Mach. & Equip. (5)
Mach. & Equip. (4)
Mach. & Equip. (3)
TOTAL MARKET VALUE
Sale of Used Equipment
Mach. & Equip. (7)
Mach. & Equip. (6)
Mach. & Equip. (5)
Mach. & Equip. (4)
Mach. & Equip. (3)
TOTAL EQUIPMENT SOLD

o
o
o
o
o
o
o

Year 3

Year 4

o
o
o
o
o
o
o
o
o
o
o

1,868

126,000
123,954
27,390
850
88,951
12,324
20,500
30,614
6,433
10,575
447,590
Year 2

126,000
115,690
26,021
786
80,945
10,739
17,425
25,104
4,565
7,403
414,677
Year 3

1,868

Year 6

o
o

o
o
o
o
o
o
8,300
10,575
18,875

Year 7

o
o
o
o
o
o
o
o
o
o
o

Year 8

Year 9

o
o
o
o
o
o

o
o
o
o
o
o

20,500

30,614

o
o

Year 10

Year 11

Year 12

o
o

o
o
o

12,324

10,575
10,575

119,565

o
o
o
o
o

0
88,951

30,614

10,575
31,075

20,624

o
o
o
o
o
o

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32.912

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32.912

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912

126,000
90,900
21,912
595
56,928
5,986
8,200
8,572
7,263
8,460
334,815
Year 6

126,000
82,636
20,543
531
48,923
4,401
5,125
33,676
5,395
5,288
332,517
Year 7

126,000
74,372
19,173
468
40,917
2,817
22,550
28,165
3,528
12,690
330,679
Year 8

126,000
66,109
17,804
404
32,912
13,556
19,475
22,654
9,960
9,518
318,390
Year 9

126,000
57,845
16,434
340
24,906
11,971
16,400
17,144
8,093
6,345
285,478
Year 10

126,000
49,582
15,065
276
16,901
10,387
13,325
11,633
6,225
13,748
263,141
Year 11

126,000
41,318
13,695
213
97,846
8,803
10,250
36,737
4,358
10,575
349,793
Year 12

1,232

o
o

0
0
0

o
o

o
o
o
o

o
o
o

2,050

1,232

o
o

o
o
8,300

o
o
30,614

o
o

Depreciation
8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912

0.00
0.00
0.10
0.10
0.10
0.10
0.10
0.10
0.10

Year 5

o
o
o
o
o
o
o
o
o
o
o
8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912
126,000
107,427
24,651
723
72,939
9,155
14,350
19,593
2,698
4,230
381,765
Year 4

8,264
1,370
64
8,006
1,584
3,075
5,511
1,868
3,173
32,912
Book Value

equipment

8,300
8,300
Year 1

126,000
99,163
23,282
659
64,934
7,570
11,275
14,082
9,130
11,633
367,727
Year 5

2,050
3,061
830

1,058
4,119

830

830
1,058
1,888

3,061

o
o
3,061

1,058
1,058

TABLE 5. Pro Forma Cashllow Budget for Hypothetical Shrimp Farm Inc.
Item
Year 1
Year 2
BEGINNING CASH BALANCE
Receipts:
Shrimp
Sale of capital
TOTAL CASH INFLOW
Operating Expenses:
Postlarvaa
Fertilizer
40% Protein Feed
Pumping
Aeration
Ice
Processing
Pack & Grading
Full Time Labor
Management Salaries
Accountant Fees
Legal Fees
Insurance Premium
Repair of Buildings.
Repair Mach, Equip, Ponds
Repairs Storm Damage
Ulilities
Supplies
Property Tax
Fuel
Contingency
Total Operating Expenses
Capital Invest & Replace
Schedule of Debt Payments
Intermediate Principal
Intermediate interest
Income & Self-employ Taxes
TOTAL CASH OUTFLOW
AVAILABLE CASH
Investors Paid in Capital
New Borrowing
Short Term:
Capital Equipment
Operating Capital
Intermediate (end of yr)
Payment on Short Term Note
Proneipai
interest
Total Short Term Payment
Dividends to Investors
ENDING CASH BALANCE

Year 4

Year 3

Year 5

30,000

30,000

30,000

30,000

Year 6
30,000

o
o

681.578

586,895

30,000

711,578

616,895

530,225
830
561,055

a
a
a

o
o

72,000
321
114,109

72,000
321
114,109
22,822
18,543
10,188

a
o

a
a

a
a
15,000
1,500
1,000

o
o

o
o
o
a
o

Year 10
30,000

30,000

681,578
4,119
715,697

586,895
2 ,050
618,945

530,225
1,232
561.457

681,578
1,888
713,466

566,895

72,000
321
114,109
22,822
18,543
10,188

72,000
321
114,109
22,822
18,543
10,188

72,000
321
114,109
22,822
18,543
10,188

72,000
321
114,109

72,000
321
114,109

22,822
18,543
10,188

72,000
321
114,109
22,822
18,543
10,188

o
o

o
o

o
o

o
a

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400
1,960
239
3,000
32,728
360,005

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400
1,960
220
3,000
32,726

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400

1,960
258
3,000
32,730

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400
1,960
229
3,000
32.727
359.994
30,614

Year 11

Year 12

30,000

30.000

530,225
3,061
563,286

681,578
1,058
712,636

72,000
321
114,109
22,822
18,543
10,188

72,000
321
114,109
22,822
18,543
10,188

o
o

o
o

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400

1,960
191
3,000
32,723
359,952
10,575

15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1,400
1,960
181
3,000
32,722
359,941
119,565

o
o

o
o

o
o

o
a

o
616.895

22,822
18,543
10,188

15,000
30,000
1,500
1,000
750

15,000
50,000
1,500
1,000
1,500
1.096
11,843
757
1,400
1,960
268
3,000
32,731
360,036

360.028

1.960
248
3,000
32,729
360,015
18,875

41,870
22,552
82.823
507.282
204,297

45,638
18,784
54,643
479.091
137,804

49.745
14,676
38,127
481,439
79,616

54,223
10,199
87,940
512.366
203,331

59,103
5,319
59.463
514.493
104.452

43.249
434.308
127.149

90,420
471.016

60.487
420.449
196.447

43,871
414.398
148,888

90,173
569,678
142,957

o
332

o
1,400
1,960
277

o
o

0
0

0
501.898
-471,898
274,794

Yaar9

30,000

3,000
5,522
60.741
441,157

250,579
30,741
250,579

19,800
594
20,394

281,320
23,474
304,794

30,000

30,000

19,800

Yaar8

30,000

o
o

500
1,800
19.800
8,300

28.100
-28.100
58 ,694

22,822
18,543
10,188

Ya817

359.983
31,075

1,960
210
3,000
32,725
359,973
20,624

a
15,000
50,000
1,500
1,000
1,500
1,096
11,843
757
1.400
1,960
200
3,000
32,724
359,962

330,036

330,026

330,015

330,005

329,994

329,983

329,973

329,962

329,952

329,941

330,036
9.901
339,937
164.395
30.000

330,026
9,901
339,927
97,904
30,000

330,015
9,900
339,916
39,716
30,000

330,005
9,900
339,905
163.431
30,000

329,994
9,900
339,894
64,553
30,000

329,983
9,900
339,883
87,250
30,000

329,973
9,899
339,872
202.550
30.000

329,962
9,899

329,952
9,899
339,850
108,990
30,000

329,941
9,898
339,839
103.059
30,000

339,861
156.548
30,000

TOTAL INTERMEDIATE LOAN PAYMENT ANALYSIS

Balance at beginning of year

Interest Accrued
Total Balance Before Payment
Payment
Remaining Balance
Princiele
Net Present Value (7 Years)
Internal Rate of Retum (7 Years)
Net Present Value (12 Years)
Internal Rate of Retum (12 Years)

0
0
0
0
0
0

250,579
22,552
273,131
64,422
208,709
41,870

208,709
18,784
227,493
64,422
163,071
45,638

163,071
14,676
177,747
64,422
113,325
49,745

113,325
10,199
123,524
64,422
59,103
54,223

59,103
5,319
64,422
64,422
0
59,103

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

-267,609
-267 ,609

164,395
164,395

97,904
97,904

39,716
39,716

163,431
163,431

427,069
64,553

87,250

202,550

156,548

108,990

482,852

0
0
0
0
0
0
114,050
46.84%
141,003
45 .08%

Initial Investment (7 Years)

InHial Investment (12 Years)
Net income before short term
Estimated social security tax
Estimated Medicare tax
Estimated income tax
Estimated total taxes
Estimated cash available before borrowing

-19,800
0
0
0
0

-62,609
0
0
0
0
-411,157

266,077
6,882
3,776
75,235
85,893
625,685

175,173
6,882
3,776
47,055
57,713
559,183

123,451
6,882
3,580
31,021
41,483
500,697

282,581
6,882
3,776
80,351
91,009
624,686

190,720
6,882
3,776
51,874
62,532
525,799

138,561
6,882
3,776
35,705
46,363
464,019

290,581
6,882
3,776
82,831
93,469
599,353

194,021
6,882
3,776
52,897
63,555
553,340

140,422
6,882
3,776
36,282
46,940
505,771

289,782
6,882
3,776
82,584
93,241
499,630

Pre Ending Cash Balance

SHORT TERM BORROWING:
Capital Equipment
Operating Capital

-28,694

-244,794

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

0
19,800
594

250,579
30,741
23,474

0
330,036
9,901

0
330,026
9,901

0
330,015
9,900

0
330,005
9,900

0
329,994
9,900

0
329,983
9,900

0
329,973
9,899

0
329,962
9,899

0
329,952
9,899

0
329,941
9,898

TABLE 6. Pro Forma Balance Sheet for Hypothetical Shrimp Farm Inc.

Item
CUARENT" ASSETS
Cash on Hand

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 9

Year 8

Year 10

Year 11

Year 12

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

o
o
o

10,739
17,425
25,104
4,565
7 ,403

8,300

12,324
20,500
30,614
6,433
10,575
80,445

65,235

9,155
14,350
19,593
2,698
4,230
50,025

7,570
11,275
14,082
9,130
11,633
53,690

5,986
8,200
8,572
7,263
8,460
38,480

4,401
5,125
33,676
5,395
5,288
53,884

2,817
22,550
28,165
3,528
12,690
69,749

13,556
19,475
22,654
9,960
9,518
75,163

11,971
16,400
17,144
8,093
6 ,345
59,953

10,387
13 ,325
11,633
6,225
13,748
55,318

8,803
10,250
36,737
4,358
10,575
70,722

o
o
o
o
o
o

126 ,000
123,954
27,390
850
88,951
367,144

126,000
115,690
26,021
786
80 ,945
349,442

126,000
107,427
24,651
723
72,939
331,740

126,000
99,163
23 ,282
659
64,934
314,037

126,000
90,900
21,912
595
56,928
296,335

126,000
82,636
20,543
531
48,923
278,632

126 ,000
74,372
19,173
468
40,917
260,930

126,000
66,109
17,804
404
32,912
243,228

126,000
57,845
16,434
340
24,906
225,525

126,000
49,582
15,065
276
16,901
207 ,823

126,000
41,318
13,695
213
97,846
279,071

38.300

477,590

444,677

411,765

397,727

364,815

362,517

360,679

348 ,390

315,478

293,141

379,793

CURRENT" UABlUTlES
Current Portion Intermediate
TOTAL CURRENT LIABILITIES

41,870

45,638

49,745

54,223

59,103

INTERMEDIATE LlABLITIES

208,709

163,071

113,325

59,103

TOTAL LIABILITIES

250,579

208,709

163,071

113,325

59,103

NET WORTH

38,300

227,011

235 ,968

248,694

284,402

305,712

362,517

360,679

348,390

315,478

293,141

379,793

TOTAL LIABILITIES & NET WORTH

38,300

477,590

444,677

411,765

397,727

364,815

362,517

360,679

348,390

315,478

293,141

379,793

CHANGE IN NET WORTH

38,300

188,711

8,957

12,726

35,708

21,310

56,804

-1,837

-12,289

-32 ,912

-22,337

86,652

0.72
1.10
1.91
0.52

0.66
0 .88
2 .13
0 .47

0.60
0.66
2 .53
0.40

0.55
0.40
3 .51
0 .28

0 ,51
0.19
6. 17
0.16

0.00
0.00
0 .00
0 .00

0 .00
0.00
0.00
0.00

0. 00
0.00
0. 00
0 .00

0.00
0 .00
0.00
0.00

0.00
0.00
0.00
0 . 00

0.00
0.00
0 . 00
0.00

INTERMEDIATE ASSETS
Mach. & Equip. (7)
Mach . & Equip. (6)
Mach. & Equip. (5)
Mach. & Equip. (4)
Mach. & Equip. (3)
TOTAL INTERMEDIATE ASSETS

8,300

LONG TERM ASSETS

Land

Pond Cons. (15)

Buildings (20)
Mach . & Equip. (12)
Mach. & Equip. (10)
TOTAL LONG TERM ASSETS
TOTAL ASSETS

Curran1 Ra1io
Debt/Equity (Leverage) Ratio
Net Capital Ratio
Debt/Asset Ratio

A
1
2

3
4
5
6
7
8

81

Year 4

YearS

Year 6

Year 7

Year 8

Year 9

Year 10

Year 11

Year 12

TABLE 7. Pro Forma Income Statement for Hypothetical Shrimp Farm Inc.
Year 2

Year 1

litem
Income:
Shrimp
Sale of Capital Eguipment
Total Income

Year 3

0
0
0

0
0
0

681,578
0
681,578

586,895
0
586,895

530,225
830
531,055

681,578
4,119
685,697

586895
2,050
588,945

530,225
1,232
531,457

681,578
1,888
683,466

586,895
0
586,895

530,225
3,061
533,286

681,578
1,058
682,636

19,800
594
20,394

60,741
23,474
84,216

360,036
32,453
392,489

360,026
28,685
388,710

360,015
24,577
384592

360,005
20,099
380,104

359,994
15,219
375 213

359,983
9,900
369,883

359,973
9899
369,872

359,962
9,899
369,861

359,952
9,899
369,850

359,941
9,898
369,839

-20,394

-84,216

289,089

198,185

146,463

305,593

213,732

161,574

313,594

217,034

163,436

312,797

0
0

1,868
0

32,912
0

32,912
0

32,912

32,912

32912

0
32,912

32,912
0
32,912

32,912

0
32,912

32,912
0
32,912

32,912

1 868

32,912
0
32,912

32,912

32,912
0
32912

0
32,912

32,912

-20,394

-86,083

256.176

165,273

113,550

272,681

180820

128,662

280,681

184,122

130,524

279,884

0
0
0
0

0
0
0
0

6,882
3.776
72,166
82823

6,882
3,776
43,985
54,643

6,882
3,293
27,952
36,127

6,882
3,778
77,282
67.940

6882
3,776
48,805
59463

6882
3,731
32,636
43,249

6882
3,776
79,762
90,420

6882
3,776
49,829
60,487

6,882
3,776
33,213
43,871

6882
3776
79,515
90.173

-20,394

-86,083

173,353

110,629

75,424

184,741

121,357

85,412

190,261

123,635

86,653

189,711

36,375
39,426
47,102

41,837
45,379
51,261

45,818
49,739
54,281

35,227
38,278
46,428

40,384
43,927
50,327

44,065
47,9B6
53,139

34,279
37,329
45,709

39,808
43,351
49 B61

44,062
47,983
53,209

34,276
37,326
45,683

6.21
6.73
8.05

6.15
6.67
7.54

6.09
6.61
7.21

6.02
6.54
7.93

5.94
6.46
7.40

5.B6
6.38
7.06

5.86
6.38
7.81

5.86
6.38
7.33

5.86
6.38
7.07

5.85
6.38
7.80

Cash Expense:
Operating
9
Interest
10
1 1 Total Cash Expense
12
13 Net Cash Income
14
15 NonCash Adjustments
Depreciation
16
Book Value - Capital assets
17

18
19
20
21
22
23
24
25
26
27

Total NonCash Adiustments

I
Net Farm Income Before Tax

Taxes
Social Security
Medicare
Income Tax
Total taxes

I
Net Income Above Taxes

28 Breakeven Production (kg. heads-oHI

To Cover Cash Costs
29
To Cover All Costs Before Taxes
30
To Cover All Cost Including Taxes
31
32 Breakeven Price ($/kg)
To Cover Cash Costs
33
To Cover All Costs Before Taxes
34
To Cover All Cost Including Taxes
35

Abstract
A GUIDE TO TI-IE FINANCIAL ANALYSIS OF SHRIMP FARMING
(Spread Sheet For Micro Computers)
Griffin and Treece, 1999
This program was re-written by Wade L. Griffin, Professor, Department of Agricultural
Economics, Texas A&M University and Granvil D. Treece, Aquaculture Specialist, Texas
A&M University, Sea Grant College Program in 1999. In starting a shrimp culture
business, one of the first steps is to develop a business plan. The business' plan should
contain a statement about the business and a financial plan. Once the basic business plan
has been developed, it is necessary to demonstrate the economic feasibility over the
planning horizon of the venture. This type of analysis is required by banks or investors
for determining the financial success of the venture. The purpose for this program is to
assist the user in conducting an economic feasibility analysis of a shrimp farm. To achieve
this objective a financial analysis is conducted for a hypothetical intensive shrimp farm on
the Texas coast. The hard copy of the analysis accompanying the diskette shows the
results of the analysis and a "read me" file explains how to use the model and how to
customize it to suite the users' needs. The model includes seven (7) tables: 1) Unit Cost,
Production, and Financial Assumptions; 2) Construction and Equipment Needs; 3) Fann
Production, Inputs Used and Management; 4) Capital Transactions and Various Financial
Assumptions; 5) Pro Forma Cashflow Budget (Profit and Financial Return); 6) Pro Forma
Balance Sheet; and 7) Pro Forma Income Statement (break-even analysis, sensitivity
analysis). This financial model for a shrimp farm is developed in a fully integrated
spreadsheet. For example, if you want to change your stocking density, the model will
automatically make all the changes to your cash flow, balance sheet, income statement,
and rate of return. The Shrimp Farming Financial Analysis/Spread Sheet for micro
computers is available on three and one half inch diskette only for either Macintosh (Excel
5.0 or higher) or mM/PC (Excel 5.0/95 or higher). When ordering please specify which.
US$25.00 includes a hard copy of program, a "read me" file, and one diskette and
shipping.