Sources of money

Every 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.



Video Clip

To play Video Clip, just click once on the play icon. (If you have slow internet connection such as Satellite or dial up then you may need to press pause for a minute to allow streaming of clip for a continuous viewing)

Audio Clip

To play Audio Click, just click once on the play icon. (If you have slow internet connection such as Satellite or dial up then you may need to press pause for a minute to allow streaming of clip for continuous listening)


 
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.



                                        Return to Main menu                                         Feedback and Comments