Developing Financial Statements
There are four basic financial statements recommended for all farm businesses. This module describes them and the different parts involved in completing them. Beginning with the net worth statement, a sample farm's financials are given for a visual explanation. As a user you will also be given the chance to complete your own net worth statement with a step by step process. Examples, outside sources, worksheets, and spreadsheets are all included to help you through the process.
Next the income statement is explained and what is included in it. After the many different parts are described, more examples, worksheets, and a spreadsheet are given. After both these financial statements are explained, quizzes are in the course to test your knowledge and are graded immediately so you know if you have fully understood everything.
Once all four financial statements have been explained and you have been able to complete them for your own operation, the module tells how they all fit together and can be used in evaluating your farming operation. These financial statements are an essential part of loan applications and business plans, and will be used by lenders to make credit decisions about your operation.