Farm Financial Statements

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Presentation transcript:

Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity

Recording Transactions in the Cash Journal Date Description Value Amount To (from) whom Enterprise

Transactions are then posted to accounts Production Investing Financing Nonfarm

Transactions can be: Receipts (cash in) Expenditures (cash out)

Chart of Accounts Example Production: Income 101 Grain sales 102 Hog sales 103 Cattle sales 110 USDA pmts 120 Custom work Production: Expenses 101 Fertilizer 102 Seed 103 Herbicides 110 Feed 111 Veterinary 120 Rent 130 Wages

Statement of Cash Flows for 200__

Statement of Cash Flows Beginning cash on hand + Total Cash inflows - Total Cash outflows = Ending cash on hand

Cash Flow Summary for Year 3 Farm Number Operating Income: Borrowing: Corn Sales $ 25,200 Emergency $ 1,101 Soybean sales 23,917 Operating 10,000 Feeder cattle 90,000 Crop insurance payment 0 Machinery 0 Cattle sales 266,929 Combine 0 Hog sales 101,041 Hog facilities 0 Sow and boar sales 4,386 Land 0 Capital Asset Sales: Machinery and comb. sales 0 Carryover operating 0 Total cash inflow 522,574

Cash Outflows Operating Expense: Capital Assets: Seed, fertilizer, chem. 21,540 Machinery purchase 0 Crop insurance premium 0 Combine purchase 0 Fuel and oil 3,832 Hog facilities purchase 0 Custom machine hire 9,525 land purchase 0 Machinery repairs 1,158 Cash rent 0 Principal paid: Feeder cattle purchased 92,400 operating 10,000 Grain purchased 45,886 cattle 162,000 Hay and supplement 31,126 machinery 24,600 Veterinary and health 10,250 combine 0 Hauling, commission 7,200 swine facilities 0 Boars, gilts purchased 1,600 emergency loan 1,101 Property tax 5,506 land 10,000 Insurance on bldg., mach. 1,148 Building repairs 675 Nonfarm: Utilities 5,900 Family living expenses 30,000 Hired labor 3,000 Income tax paid 0 Grain storage 0 Interest paid 28,809 Total cash outflow 507,257

Summary Cash on hand, Jan. 1 16,261 + Total cash inflow 522,574 - Total cash outflow 507,257 = Cash remaining, Dec. 31 31,578