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

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

3. Transactions are then posted to accounts
Production
Investing
Financing
Nonfarm

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

5. 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

6. Statement of Cash Flows for 200__

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

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

9. 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 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

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