Sources of moneyEvery economic whole needs money coming in and out, in order to sustain its economy. The important aspect is to note the sources of money that are available to currently available to the decision-makers. We'll continue to use as example the Greenslopes Pastoral Co.
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You are not looking to produce a detailed ‘balance sheet’ or ‘profit and loss statement’ here. All you're doing is identifying the resources of money now available to the whole,. These are the known sources of money that might possibly be utilised to implement future decisions. If you like, you are 'putting a rope around how things are now'. Shortly, in another step we will address how things will become in the future.
In our example the whole receives money ‘in’ from these sources: sales of crops and livestock, some dividends, some contractually binding environmental payments from the government, and if required, they have an overdraft facility that can be drawn down during the periods when money is moving out faster than it’s coming in, such as leading up to crop planting.
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