Schedule M-5

Schedule M-5 – Additional Cash
1. Has the Applicant demonstrated positive cash flow for the two years prior to submitting an
application?
(Cash Flow is defined as Cash Provided (Used) By Operating Activities shown in the
“Statement of Cash Flows” as required under Generally Accepted Accounting Principles.
Cash Flow should be calculated using the “Statement of Cash Flows” included in the
Schedule M-4A described as line item “Net Cash Provided (Used) By Operating Activities.”)
Yes

Enter amounts below; Go to Question 2

No

Enter amounts below; Skip Question 2; Go to Question 3

a. Enter the Applicant’s cash flow for each of the two years prior to submitting an
application. This information must match the information included in Schedule M-1
- Historical Financial Statements.
Cash Flow for the past calendar year
Cash Flow for the second prior calendar year
2. Does the Applicant’s Pro Forma Financial Forecast as submitted for Schedule M-4A
demonstrate positive cash balances in each of the five forecast years?
Yes

If the Applicant answered “Yes” to both questions 1 and 2, no further
information is required by the applicant for this section.
Note: RUS will conduct its own financial analysis to determine whether the
Applicant’s financial forecast and assumptions can demonstrate positive
cash balances in all forecast years.

No

Additional cash is required; Go to question 4

3. If the Applicant answered “Yes” to Question 1, the Applicant must attach to Schedule M-5 a
modified version of the financial projections used in Schedule M-4A. These modified
projections must include only 50% of the projected revenues on the Income Statement,
along with a corresponding Balance Sheet and Statement of Cash Flows. In all cases,
projections must be fully supported with assumptions acceptable to RUS.

4. If the Applicant answered “Yes” to Question 2, the Applicant must address the additional
equity or debt financing it will procure to meet cash shortfalls during the five-year forecast.
Attach an explanation to Schedule M-5, and ensure that these details are reflected in
Schedule M-2 – Schedule of Debt and Equity Funding.