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Table 1

This document provides income statements and financial indicators for a 256-acre catfish farm for the year ending December 31. The catfish farm had total revenue of $806,400 from cash catfish sales. Total expenses were $803,608, including $610,322 in cash operating expenses and $150,579 in interest paid. This resulted in net farm income from operations of $2,792. Financial indicators show a 10% rate of return on assets and a -2% rate of return on equity for the catfish farm.

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59 views2 pages

Table 1

This document provides income statements and financial indicators for a 256-acre catfish farm for the year ending December 31. The catfish farm had total revenue of $806,400 from cash catfish sales. Total expenses were $803,608, including $610,322 in cash operating expenses and $150,579 in interest paid. This resulted in net farm income from operations of $2,792. Financial indicators show a 10% rate of return on assets and a -2% rate of return on equity for the catfish farm.

Uploaded by

linkin soy
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We take content rights seriously. If you suspect this is your content, claim it here.
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Table 1.

Income statement for a 256-acre catfish farm,


December 31.
Item Total value
Catfish farm revenue
 
Cash catfish sales $806,400
Accounts receivable 0
Change in market livestock inventory 0
Total catfish farm revenue $806,400
Catfish farm expenses
 
Cash operating expenses
Feed $278,265
Fingerlings $72,832
Labor
Year-round, full-time $40,560
Seasonal, part-time $10,140
Plankton control $3,686
Gas, fuel and oil $33,280
Electricity $73,984
Repairs and maintenance $24,832
Bird depredation supplies $1,600
Seining and hauling $57,600
Telephone $2,688
Office supplies $2,816
Legal/accounting $1,562
Insurance $6,477
Total cash farm expenses $610,322
Accounts payable 0
Prepaid expenses 0
Depreciation $42,707
Total operating expenses $653,029
Cash interest paid
Interest on operating line of credit $50,190
Interest paid on long-term loans
Land $21,043
Wells $4,800
Pond construction $35,789
Equipment $38,757
Total interest paid $150,579
Total expenses $803,608
Net farm income from operations $2,792
Table 2. Financial indicators of the proportion of net farm
income earned by each factor of production, 256-acre
catfish farm, December 31.
Financial indicator Value
Return to labor and management a
$24,786
Return to labor b
$14,616
Return to management c
$10,140
Rate of return on assets (ROA) d
10%
Rate of return on equity (ROE) e
-2%
Operating profit margin ratio (OPMR) f
16%
a
Calculated from the income statement as follows: net farm income from
operations + interest expenses = adjusted net farm income – opportunity
cost of all capital.
b
Calculated from the income statement as follows: return to labor and
management – opportunity cost of management.
c
Calculated from the income statement as follows: return to labor and
management – opportunity cost of labor.
d
Calculated from the income statement as follows: net farm income +
interest expense = adjusted net farm income – opportunity cost of unpaid
labor – opportunity cost of management = return to assets ÷ average asset
value x 100.
e
Calculated from the income statement as follows: net farm income –
opportunity cost of labor – opportunity cost of management = return on
equity ÷ average equity x 100.
f
Calculated from the income statement as follows: net farm income +
interest expense – opportunity cost of unpaid labor – opportunity cost of
management = operating profit ÷ total revenue x 100.

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