Enter Numbers i Dark Blue on the following page, all others are calculated.

Introduction: The primary purpose of this template is to demonstrate the interaction of financial statements and take
"quicka and dirty" look at the financial feasibility of an operation. The user must complete some very simple informa
about each enterprise within an operation. Additional information about assests and liabilities are necessary to provid
complete financial picture.

Use the Enterprise tab and Statements tab at the bottom of the screen to enter requested data. This template is not ca
of detailed financial analysis. Spreadsheets that are capable of detailed financial analysis are located at
http://www.montana.edu/extensionecon/farmmgt/software.html

Financial statements used are very condensed versions of the basic statements used for financial analysis (balance sh
cash flow, income statement, statement of owner equity). These statements are both simplfied and some data entry ha
restricted to assure information flows to the correct financial statement. While simplified statesments, the interaction
statements and financial analysis concepts remain the same. In fact, these statements produce financial analysis ratio
(see Ratio_Calc tab) and dollar amount calcualtions identical to detailed financial statements.

The statements in this template are distributed "in balance" (fully reconciled). To help learn about the relationship am
the financial statements and how information flows from one to another, change a number (only those in blue text) in
the statements or on the Enterprise tab. The Statement of Owner Equity indicates whether the statements are still reco
This provides an opportunity to discuss how financial statements are linked together. Changes in one number must b
"offset" with changes somewhere else in the same system of financial statements. In many instances, in this spreadsh
this offset in automatically computed and put on the right statement. If the Statement of Owner Equity showns a
Discrepancy figure that is not equal to zero the "set of statements" are out of balance. The user must make one or mor
additional entries somewhere to make the statements reconcile.

This program uses only business assets and liabilities in the reconciliation process. Personal (Non-Business Assets and Liabilities) items are
However, non-business cash inflows and outflows are considered for correct Cash Flow calculations. (Off Farm wages, family living expen
 Written by Duane Griffith Last update
ements and take a Montana State University Septemeber 11, 2003
y simple information 210 Linfield Hall
essary to provide a Bozeman, MT 59717
[email protected]
406-994-2580
mplate is not capable
d at To check for updates of this software, click the link below.
http://www.montana.edu/extensionecon/farmmgt/software.html

ysis (balance sheet, Loof for the RDFinancial file and check the
me data entry has been date this file was last updated.
, the interaction of the
al analysis ratio values

relationship among
e in blue text) in one of
ents are still reconciled.
e number must be
in this spreadsheet,
y showns a
make one or more

abilities) items are ignored.

amily living expenditures, etc.)
 Only information in blue text can be changed/entered. All other information is calculated or fixed.

Click button to print all input, statements, and ratios in this file>>
Crop Production/Sales Estimates:
Crop and Forage Enterprises (MUST use a yield of 1 for summer fallow, price = zero)
Crop/Forage Name WinterWheat Barley Hay Sum. Fallow Recrop Bar. Recrop WW SpringWheat Flax Canola
Yield Per Unit 30.0 48.0 2.00 1 43.2 27.0 34.0 14.5 1200.0
Number of Acres Per Enterprise 1000 500 300 1000 200 300 500 0 0 3,800
Sales Price Per Unit $3.30 $2.15 $0.00 $0.00 $2.15 $3.30 $3.50 $5.65 $0.12
Percent Acres Leased 20.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Help Tenant Share Lease Percentage 66.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Totals
Total Enterprise Crop Revenue $99,000 $51,600 $0 $0 $18,576 $26,730 $59,500 $0 $0 $255,406
Lease Payments going To Others $6,732 $0 $0 $0 $0 $0 $0 $0 $0 $6,732
Units (Bu, tons, lbs) Produced 30,000 24,000 600 1,000 8,640 8,100 17,000 0 0
$248,674
Total Owner/Tenant Revenue Received $248,674

Livestock Produciton/Sales Estimates:

Breeding Livestock Enterprises Non-Breeding Livestock Ent.
Cow-Calf Sheep Other brdg lvstk Feeders Stockers Cull Revenue Calculations
Cull Rate for Enterprise 15% 0% 0% Cash Base Value Capital
Cull Female Animal Weight 1,200 0 0 Cull Income Animals Sold Gain/Loss
Cull Female Price Per Unit $0.50 $0.00 $0.00 Cows $18,000 $18,000 $0
Cull Male Animal Weight 1,800 0 0 Bulls Only $2,640 $0 $2,640
Cull Male Price Per Unit $0.55 0 0 Sheep - Ewes $0.00 $0 $0
Avg. Number Females/Male 25 0 0 Rams Only $0.00 $0 $0
Bull/Ram/??? Purchase Cost $2,500 0 0 Other Brding Females $0.00 $0 $0
Avg. Lbs Prod. Per Animal 475 0 0 0 0 Other Brding Males $0.00 $0 $0
No. Animal Exposed/Fed/Finished 200 0 0 0 0 Total Cull Revenue $20,640 $18,000 $2,640
Price Per Unit $1.00 $0.00 $0.00 $0.00 $0.00
Base Value/Brding Animal $600 $0 $0
Other Revenue/Unit $0.00 $0.00 $0.00 $0.00 $0.00
Enterprise Revenue $115,640 $0 $0 $0 $0

Total Livestock Revenue $115,640

Help Government Payments:

Direct Payment Calculations:
Name for each Enterprise WinterWheat Barley Hay Sum. Fallow Recrop Bar. Recrop WW SpringWheat Flax Canola
Base Acreage by Enterprise 1000 500 200 300 500
Percent of Base Leased from Others 20.0%
Help Direct Payment Rate by Commodity $0.52 $0.24 $0.24 $0.52 $0.52
Direct Payment Yield by Commodity 32 50 45 28 30
Direct Payments Per Base Acre $14.14 $10.20 $0.00 $0.00 $9.18 $12.38 $13.26 $0.00 $0.00 Row Totals
Total Enterprise Gov. Payments $14,144 $5,100 $0 $0 $1,836 $3,713 $6,630 $0 $0 $31,423
Gov. Payments Going To Others $962 $0 $0 $0 $0 $0 $0 $0 $0 $962
Government Payments, excluding share paid to landlords $30,461

Counter Cyclical Payments:

Counter Cyclical Payment Target Price Schedule as of February 2005.

Commodity Unit 2002--03 2004--07

barley per bushel $2.21 $2.24
corn per bushel $2.60 $2.63
grain sorghum per bushel $2.54 $2.57
oats per bushel $1.40 $1.44
other oilseeds per Cwt. $9.80 $10.10
peanuts per ton $495.00 $495.00
rice per Cwt. $10.50 $10.50
soybeans per bushel $5.80 $5.80
upland cotton per pound $0.72 $0.72
wheat per bushel $3.86 $3.92

Effective Price calculation WinterWheat Barley Hay Sum. Fallow Recrop Bar. Recrop WW SpringWheat Flax Canola
Direct Payment Rate for this Commodity (Enter from table above) $0.52
National Average Market Price Received During the Marketing Year $3.75
National Average Loan Price for This Commodity $3.00
Counter Cyclical Payment Yields

LDP Payments:
 Expenses by Enterprise
Warning: When entering the enterprise expenses below, do not include expenses for depreciation, interest (opportunity costs) or family
living. Depreciation expenses are included at the whole farm/ranch level and are entered below on this tab. Interest is included on the
whole farm/ranch level and is calculated below on this tab. Family living is entered on the Statements page. If included in the
enterprise costs for crops or livestock, these expenses will be double counted.

Crop and Forage Enterprises

WinterWheat Barley Hay Sum. Fallow Recrop Bar. Recrop WW SpringWheat Flax Canola
Help Avg. Cost Per Unit of Yield $2.00 $1.85 $40.00 $35.00 $1.90 $2.10 $2.10 $4.40 $0.06
Help Cost/unit adjustment for leased acres 30.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Cost by Enterprise $56,400 $44,400 $24,000 $35,000 $16,416 $17,010 $35,700 $0 $0
Total Crop Cost of Production $228,926
Livestock Enterprise Breeding Livestock Enterprises Non-Breeding Livestock Ent Do Not include interest or
Cow-Calf Sheep Other brdg lvstk Feeders Stockers depreciation in the per unit (per bu.,
Help Cost per Pound Produced $0.60 $0.00 $0.00 $0.00 $0.00 per pound, per ton, per cwt, etc.)
costs of production.
Purchase Cost Mrkt Lvstk (Dollars per pound) $0.00 $0.00
Purchase Weight Per Head (Enter in pounds) 0 0
Lvstk cost by enterprise $57,000 $0 $0 $0 $0
Cost Per Breeder/Feeder Animal $285 $0 $0 $0 $0
Total Livestock Cost Of Production $57,000
Cost of Production (Crops & Lvstk) $285,926
Help Cost of production Overhead Percentage 3.00% << Example, enter 2% as 2% not 102%.

Total cost of production, Crops and Livestock $294,504

 Asset and Liability Calculations for the Balance Sheet, Cash Flow and Income Stat
Beginning
Asset
Value Liabilities
Crop Acres/Units Owned 3600 Interest Rate
Average Value Per Acre $300 Payment #
Total Cropland Value $1,080,000 # Payments
Depreciation
Livestock Acres Owned 4000 or Capital Ending
Average Value Per Acre $100 Replacement Asset Value
Total Rangeland Value $400,000 Expense by Adjustment Percent Debt
Asset Type Total Dollars By Asset Type
Total Real Estate (Crop + Range) $1,480,000 $7,400 $0 20%
Mach & Equip. $380,000 $25,000 $0 30%
Bldg & Improvements $100,000 $5,000 $0 10%
Breeding Livestock $148,000 $2,000 $0 0%
Totals $39,400 $0 Total Liabilities
Total Asset Value $2,108,000
Debt/Asset Ratio

Purchase/Contribute/Distribute Section
Purchase Depreciation Asset Value Percent
Capital Asset Purchase Price or on Assets Plus for Purchased
or Contribution Value Purchased + Contribution Asset that is
or Distribution of Asset This Year - for Distribution Financed
Machinery & Equipment $0 $0 $0 0%
Real Estate (Land & Buildings) $0 $0 $0 0%
Breeding Livestock $0 $0 $0 0%
$0 $0 $0
eet, Cash Flow and Income Statement

Real Estate
Short Term Long Term Period Principal
8.0% 6.0% 1 $3,744
4 10 2 $3,969
7 30 3 $4,207
4 $4,459
Beginning and Ending Liability Estimates 5 $4,727
Beginning Beginning Ending Ending 6 $5,010
% Annual Annual Annual Annual 7 $5,311
Debt Principal Interest Principal Interest 8 $5,630
$296,000 ($6,326) ($15,179) ($6,705) ($14,799) 9 $5,967
$114,000 ($16,094) ($5,802) ($17,382) ($4,514) 10 $6,326
$10,000 ($1,412) ($509) ($1,525) ($396) 11 $6,705
$0 $0 $0 $0 $0 12 $7,107
$420,000 $23,832 $21,489 $25,612 $19,709 13 $7,534
14 $7,986
16.66% Checksum $45,321 Checksum $45,321 15 $8,465
16 $8,973
17 $9,511
18 $10,082
Loan Additional Additional Added Added 19 $10,687
Proceeds Ending Ending Principal Interest 20 $11,328
Received Principal Interest End Next Yr End Next Yr 21 $12,008
$0 $0 $0 $0 $0 22 $12,728
$0 $0 $0 $0 $0 23 $13,492
$0 $0 $0 $0 $0 24 $14,301
$0 $0 $0 25 $15,160
26 $16,069
27 $17,033
28 $18,055
29 $19,139
30 $20,287
Real Estate Principal Mach & Equip. Principal Bldg & Improvements Principal Breeding Livestock
Interest Remaining Principal Interest Remaining Principal Interest Remaining Principal
$17,760 $292,256 $12,776 $9,120 $101,224 $1,121 $800 $8,879 $0
$17,535 $288,287 $13,798 $8,098 $87,425 $1,210 $710 $7,669 $0
$17,297 $284,080 $14,902 $6,994 $72,523 $1,307 $614 $6,362 $0
$17,045 $279,621 $16,094 $5,802 $56,429 $1,412 $509 $4,950 $0
$16,777 $274,894 $17,382 $4,514 $39,047 $1,525 $396 $3,425 $0
$16,494 $269,884 $18,773 $3,124 $20,274 $1,647 $274 $1,778 $0
$16,193 $264,573 $20,274 $1,622 $0 $1,778 $142 $0 $0
$15,874 $258,943
$15,537 $252,976
$15,179 $246,650
$14,799 $239,945
$14,397 $232,838
$13,970 $225,304
$13,518 $217,318
$13,039 $208,853
$12,531 $199,880
$11,993 $190,369
$11,422 $180,287
$10,817 $169,600
$10,176 $158,272
$9,496 $146,264
$8,776 $133,536
$8,012 $120,044
$7,203 $105,743
$6,345 $90,583
$5,435 $74,514
$4,471 $57,481
$3,449 $39,425
$2,366 $20,287
$1,217 $0
 Total
Breeding Livestock Principal Shorter Term Principal
Interest Remaining Principal Interest Remaining
$0 $0 $13,897 $9,920 $110,103
$0 $0 $15,009 $8,808 $95,094
$0 $0 $16,209 $7,608 $78,885
$0 $0 $17,506 $6,311 $61,379
$0 $0 $18,907 $4,910 $42,472
$0 $0 $20,419 $3,398 $22,053
$0 $0 $22,053 $1,764 $0
 MPCI Basic Unit Insurance Option: Example below allows only 3 Basic Units for illu

Help Activate MPCI Basic Unit Insurance Option (Y or N) >> n

Basic Unit 1
Enter a Y for each crop covered crop tha
Crop Qualifites for MPCI Coverage (Y or N) >> Y Y N N
WinterWheat Barley Hay Sum. Fallow
Total Number of Planted Acres in This Enterprise 1000 500 300 1000
Acres of each crop in Basic Unit # 1 800 500
Help APH Yield History 30 48
Help APH Yield Coverage Election-by Crop 75% 75.00%
Help Ownership Level This Basic Unit 100% 100.00%
Help FCIC Establish Market Price $3.25 $2.00
Help Market Price Election 100% 100.00%

Calculated Yield Coveage Level 22.5 36 0 0

Actual Harvested Yield 30.2 35 2 1
Quantiity Indemnity Payment Level 0 500 0 0
Calculated Market Price Coverage Level $3.25 $2.00 $0.00 $0.00
Maximum Possible Indemnity Payment by Crop $58,500 $36,000 $0 $0
Estimated Indemnity Based on Acutal Yields $0 $1,000 $0 $0
Total Potential Indemnity Payment This Basic Unit $164,156
Esttimated Total Indemnity This Basic Unit $1,000

Acres Remaining after allocation to Basic Unit # 1

200 0 300 1000
Basic Unit 2
Enter a Y for each crop covered crop tha
Crop Qualifites for MPCI Coverage (Y or N) >> Y Y N N
WinterWheat Barley Hay Sum. Fallow
Acres of each crop in Basic Unit # 2 200
Help APH Yield History 30
Help APH Yield Coverage Election-by Crop 75%
Help Ownership Level This Basic Unit 66%
Help FCIC Establish Market Price $3.25
Help Market Price Election 100%
 Calculated Yield Coveage Level 22.5 0 0 0
Actual Harvested Yield 30.2 35 2 1
Quantiity Indemnity Payment Level 0 0 0 0
Calculated Market Price Coverage Level $3.25 $0.00 $0.00 $0.00
Maximum Possible Indemnity Payment by Crop $14,625 $0 $0 $0
Estimated Indemnity Based on Acutal Yields $0 $0 $0 $0
Total Potential Indemnity Payment This Basic Unit $14,625
Esttimated Total Indemnity This Basic Unit $0

Acres Remaining after allocation to Basic Unit # 2

0 0 300 1000
Basic Unit 3
Enter a Y for each crop covered crop tha
Crop Qualifites for MPCI Coverage (Y or N) >> Y Y N N
WinterWheat Barley Hay Sum. Fallow
Acres of each crop in Basic Unit # 3
Help APH Yield History
Help APH Yield Coverage Election-by Crop
Help Ownership Level This Basic Unit
Help FCIC Establish Market Price
Help Market Price Election

Calculated Yield Coveage Level 0 0 0 0

Actual Harvested Yield 30.2 35 2 1
Quantiity Indemnity Payment Level (bu/cwt) 0 0 0 0
Calculated Market Price Coverage Level $0.00 $0.00 $0.00 $0.00
Maximum Possible Indemnity Payment by Crop $0 $0 $0 $0
Estimated Indemnity Based on Acutal Yields $0 $0 $0 $0
Total Potential Indemnity Payment This Basic Unit $0
Esttimated Total Indemnity This Basic Unit $0

Acres Remaining after allocation to ALL Posible Basic Units Insured (In T
0 0 300 1000
WinterWheat Barley Hay Sum. Fallow
Help Total Potential Indemnity Payment $73,125 $36,000 $0 $0
Premium Rate Percenage 6% 6% 0% 5%
Premium Payment by Crop for All Basic Units $4,388 $2,160 $0 $0
Percentage Premium Subsidy 55% 55% 55% 55%
Actual Premium Paid by Producer $2,413 $1,188 $0 $0

Total Premium Actually Paid $5,900

 Total Indemnity Paid Given Actual Yields $1,000
Help Net Benefit of Crop Insurance $0

Insurance Premium Subsidy

Factors (Feb. 2005)

Coverage
Level
50%
55%
60%
65%
70%
75%
80%
85%
ws only 3 Basic Units for illustrative purposes.

Basic Unit 1 of 3
r each crop covered crop that you would like to insure.
Y Y N N N
Recrop Bar. Recrop WW SpringWheat Flax Canola
200 300 500 0 0
200 300 500
40 25 30
75.00% 75.00% 75.00%
100.00% 100.00% 100.00%
$2.00 $3.25 $3.50
100.00% 100.00% 100.00%

30 18.75 22.5 0 0
31.5 27.2 24.5 14.8 1077
0 0 0 0 0
$2.00 $3.25 $3.50 $0.00 $0.00
$12,000 $18,281 $39,375 $0 $0
$0 $0 $0 $0 $0

0 0 0 0 0
Basic Unit 2 of 3
r each crop covered crop that you would like to insure.
Y Y N N N
Recrop Bar. Recrop WW SpringWheat Flax Canola
 0 0 0 0 0
31.5 27.2 24.5 14.8 1077
0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0

0 0 0 0 0
Basic Unit 3 of 3
r each crop covered crop that you would like to insure.
Y Y N N N
Recrop Bar. Recrop WW SpringWheat Flax Canola

0 0 0 0 0
31.5 27.2 24.5 14.8 1077
0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0

ble Basic Units Insured (In This Example, only 3 units available)
0 0 0 0 0
Recrop Bar. Recrop WW SpringWheat Flax Canola
$12,000 $18,281 $39,375 $0 $0
6% 6% 6% 0% 0%
$720 $1,097 $2,363 $0 $0
55% 55% 55% 55% 55%
$396 $603 $1,299 $0 $0
 nsurance Premium Subsidy
Factors (Feb. 2005)
Premium
Subsidy
Factor
67.00%
64.00%
64.00%
59.00%
59.00%
55.00%
48.00%
38.00%
 Percent Crop Revenue 100% Percent Livestock Revenue 100% Percent Gov. Payments 100%
Assets Liabilities
Balance Sheet Beginning Ending Beginning Ending Income Statement - Accrual Adj. Income
Cash on Hand 1,500 3,893 Accounts Payable (Exp) 2,000 2,000 Cash Income (adj. for cull lvstk sales) $374,135
Crops Held for Feed (Exp) 18,000 18,000 Accrued Interest (Exp) 21,489 19,709 Non-Cash Income Adjustments 0 Quick (and Dirty) Income Tax Calculation For Cash Basis Taxpayer
Crops Held for Sale (Inc) 45,000 45,000 Current Principal 23,832 25,612 Non-Cash Income (Raised Brdg Lvstk) 18,000
Market Livestock (Inc) 0 0 Other Current Liability (Exp) 10,000 10,000 Capital Gain/Loss on Breeding Lvstk (Net) 2,640 Include Taxes In the Statements at Left (Y = Yes, N= No) N
Other Current Assets (Inc) 15,000 15,000 Short Term Notes Payable (Exp) 0 0 Gross Revenue $394,775
Cash Invt Growing Crops (Exp 0 0 Other Current Liab. (Not Adj.) 0 0 Expense Cash Income $374,135
Supplies&Prepaid Exp. (Exp) 5,800 5,800 Def. Tax on Current Assets 0 0 Cash Expense (Excluding Interest) 294,504 Cash Expense $294,504
Total Current Assets 85,300 87,693 Operating Loan Carryover 0 0 Non-Cash Feed Inventory Adjustment 0 Depreciation $39,400
Non-Current Assets Total Current Liab. 57,321 57,321 Other Non-Cash Non-Interest Expense 0 Cash Interest $27,379
Mach. & Equipment 380,000 355,000 Non-Current Liabilities Depreciation (Land, Bldgs, Equip.) 39,400 Taxable Income $12,852
Breeding Livestock 148,000 152,667 Prin. on T.D. & C.L. 308,029 282,417 Total Operating Expense 333,904 Exemptions and Standard Deductions $6,000
Real Estate (Land, Bldgs, Impr) 1,580,000 1,567,600 Total Business Liab. 365,350 339,738 Cash Int. Exp. - T.D. & C.L. 21,489 Taxable Income After Exemptions and Standard Deductions $6,852
Total Business Assets 2,193,300 2,162,960 Business Net Worth 1,827,950 1,823,222 Cash Int. Exp. - Operating 5,890 Combined State & Fed Tax Rate 21%
Change in Equity From Beginning to End of Year (4,728) Non-Cash Interest Expense (1,780) Estimated Income Tax $1,439
Total Expense $359,503
Cash Flow Statement Inflows OutFlows
Crop Sales & Net Insurance Payments 248,674 Operating Expenses No Interest > 294,504 Net Business Income From Operations 35,272
Mrkt & Cull Livestock Sales 115,640 Other Cash Business Expense 0 Net Business Income 35,272
Government Payments 30,461 Cash Int. Exp. - T.D. & C.L.* 21,489 Income & SS Taxes (Cash & Non-Cash) 0
Other Cash business Income 0Cash Int. Exp. - Operating 8% 5,890 Net Income $35,272
Operating Loan Proceeds 50% 147,252 Loan Prin. Payments - T.D. & C.L. 23,832
Loan Proceeds Capital Assets 0Breeding Livestock Asset Purchases 6,667 Statement of Owner Equity
Non-Business Inflows/Revenue Mach & Equip & Real Estate Purchase 0 Beginning Net Worth (Cost/Mrkt) 1,827,950
Other Nonfarm Inflows 0 Owner withdrawals 40,000 Net Income + 35,272
Other Nonfarm Inflows 0 Cash Taxes Paid (Income & SS) 0 Non-Business Cash Inflows + 0
Total Cash Inflows $542,027 Other Cash Outflows (Not Expenses) 0 Owner Withdrawals (Cash) - 40,000
* T.D. = Term Debt, C.L. = Capital Lease Subtotal $392,382 Asset Valuation Change or Cont./Distri +/- $0
Operating Loan Prin. Payments $147,252 Calculated Ending Net Worth = 1,823,222
Total Cash Outflows $539,633 Reported Ending Net Worth (Cost/Mrkt) 1,823,222
Annual Net Cash Flow (never < zero) 3,893 Discrepancy 0

Percent Cost of Production - Crops 100% Percent cost of Production - Livestock 100%

Note: This program is designed to teach concepts of financial analysis and get a rough initial look at a farm/ranch operation. It is not intended and you can not use this to make detailed
analysis of an individual operation. It does not have the capability to analyze detailed information.

Additional Information Needed for Ratios

1) Value of Operator and Unpaid Family Labor & Management 25,000
2) Payment on Operating Debt Converted to Term from Previous Years 0
3) Total Annual Payments on Personal Liabilities 0
 Financial Statement Ratios

Liquidity
Current Ratio Beginning Ending
Current Assets 85,300 87,693
divided by Current Liabilities 57,321 1.49 57,321 1.53
Working Capital
Current Assets 85,300 87,693
- Current Liabilities 57,321 $27,979 57,321 $30,372
Solvency
Debt/Asset Ratio Beginning Ending
Total Business Liabilities 365,350 339,738
divided by Total Business Assets 2,193,300 16.66% 2,162,960 15.71%
Equity/Asset Ratio
Total Business Equity 1,827,950 1,823,222
divided by Total Business Assets 2,193,300 83.34% 2,162,960 84.29%
Debt/Equity Ratio
Total Business Liabilities 365,350 339,738
divided by Total Business Equity 1,827,950 0.20 1,823,222 0.19
Profitability
Rate of Return on Business Assets
Net Business Income From Operations 35,272
+ Business Interest Expense 25,599
- Value of Operator and Unpaid Family Labor & Manageme 25,000
Divided by Average Total Business Assets 2,178,130 1.65%

Rate of Return on Business Equity

Net Business Income From Operations 35,272
- Value of Operator and Unpaid Family Labor & Manageme 25,000
Divided by Average Total Business Equity 1,825,586 0.56%

Operating Profit Margin Ratio

Net Business Income From Operations 35,272
+ Business Interest Expense 25,599
- Value of Operator and Unpaid Family Labor & Manageme 25,000
Divided by Gross Revenue 394,775 9.09%

Net Business Income

Calculated by Matching Revenues and Expense (Accrual) Plus
Gain or Loss on the Sale of Capital Assets $35,271.85

Repayment Capacity
Term Debt and Capital Lease Coverage Ratio
Net Business Income From Operations 35,272
+ Total Non-Business Income 0
+ Depreciation/Amortization Expense 39,400
+ Interest on Term Debt 21,489
+ Interest on Capital Leases
- Total Income Tax Expense 0
- Owner Withdrawals 40,000 $56,161.18
Divided by
Scheduled Prin. & Int. on Term Debt & Cap. Lease 45,321
Ratio Value 1.24
Capital Replacement and Term Debt Repayment Margin
Net Business Income From Operations 35,272
+ Total Non-Business Income* 0
+ Depreciation/Amortization Expense 39,400
- Total Income Tax Expense 0
- Owner Withdrawals 40,000
= Capital Replacement and Term Debt Repayment Capacity 34,672
- Payment on Unpaid Operating Debt From Prior Year 0
- Principal Pymnts-Current Portions of Term Debt & Cap. 23,832
- Total Annual Payments on Personal Liabilities (if Not in 0
= Capital Replacement and Term Debt Repayment Margin $10,840.12

* To evaluate for the business only, do not include items marked with an *

Financial Efficiency
Asset Turnover Ratio
Gross Revenues 394,775
divided by Average Total Business Assets 2,178,130 0.1812
Operating Expense Ratio
Total Operating Expense 333,904
- Depreciation & Amortization Expense 39,400
Divided by Gross Revenues 394,775 74.60%

Depreciation Expense Ratio

Depreciation & Amortization Expense 39,400
divided by Gross Revenues 394,775 9.98%

Interest Expense Ratio

Total Business Interest Expense 25,599
divided by Gross Revenues 394,775 6.48%

Net Farm Income From Operations Ratio

Net Business Income From Operations 35,272
divided by Gross Revenues 394,775 8.93%
Check Sum 100.00%
Labels starting in column B on this tab are from the Accrual Adjusted Income Statement
on the Statements tab and are shown in this color font.
Labels starting in column C on this tab are from the Balance Sheet
on the Statements tab and are shown in this color font.

Income Accrual Adjustments from Current Assets on the Balance Sheet

Ending Beginning Accrual
Inventory Inventory Income
Value From Value From (+/-) to the
Current Current Income
Non-Cash Income Adjustments Assets Assets Statement
Crops Held for Sale (Inc) $45,000 $45,000 $0
Market Livestock (Inc) $0 $0 $0
Other Current Assets (Inc) $15,000 $15,000 $0
Total Non Cash Income Adjustment made to the Income Statement $0

Non-Cash Income (Raised Brdg Lvstk) $18,000

See the Enterprise tab, cells I21 throught J31 for the non-cash value of raised breeding livestock.

Expense Accrual Adjustments made on the Accrual Income Statement

Ending Beginning Accrual
Inventory Inventory Expense
Value From Value From (+/-) to the
Current Current Income
Non-Cash Feed Inventory Adjustment Assets Assets Statement
Crops Held for Feed (Exp) $18,000 $18,000 $0

Ending Beginning Accrual

Inventory Inventory Expense
Value From Value From (+/-) to the
Current Current Income
Other Non-Cash Non-Interest Expense Assets Assets Statement
Cash Invt Growing Crops (Exp) $0 $0 $0
Supplies&Prepaid Exp. (Exp) $5,800 $5,800 $0
Liabilities Liabilities
Accounts Payable (Exp) $2,000 $2,000 $0
Other Current Liability (Exp) $10,000 $10,000 $0
Short Term Notes Payable (Exp) $0 $0 $0

Ending Beginning Accrual

Inventory Inventory Expense
Value From Value From (+/-) to the
Current Current Income
Non-Cash Interest Expense Liabilities Liabilities Statement
Accrued Interest (Exp) $19,709 $21,489 ($1,780)
Income & SS Taxes (Cash & Non-Cash) Only Accrual Adjustment Portion of Taxes
Def. Tax on Current Assets $0 $0 $0

Other Current Liab. (Not Adj.) << This line is not adjusted on the Income Statement.
Please read the comment on the Statements page of this spreadsheet.
This line is provided to help illustrate the Statement of Owner Equity's
function and reconciliation of the financial statements.
s spreadsheet.
Owner Equity's
Page down for additional enterprise budgets Goto: Corn SugarBeets

Cost of Production for Northern Plains States for 1997 and 1998. Source USDA - ERS
Cost of production estimates are These cost of production estimates are located at http://www.ers.usda.gov/Briefing/farm
included for Barley, Wheat, Oats,
Corn, and Sugar Beets. Barley Wheat
1997 1998 Avg 97-98 1997 1998 Avg. 97-98

Yield (bu./planted acre) 43.52 47.28 45.40 24.57 31.08 27.83

Cash expenses: Dollars per planted acre Dollars per planted acre
Seed 6.77 6.30 6.54 7.64 7.27 7.46
Fertilizer, lime, and gypsum 16.68 14.49 15.59 14.85 12.61 13.73
Chemicals 7.97 8.11 8.04 8.33 8.28 8.31
Custom operations 3.39 3.49 3.44 2.64 2.98 2.81 /2
Fuel, lube, and electricity 8.59 7.55 8.07 6.74 5.94 6.34
Repairs 13.87 14.08 13.98 12.77 13.52 13.15
Hired labor 4.40 4.50 4.45 2.52 2.69 2.61
Other variable cash expenses 1/ 1.04 1.06 1.05 0.03 0.03 0.03 /3
Total, variable cash expenses 62.71 59.58 61.15 55.52 53.32 54.42

General farm overhead 7.58 6.07 6.83 5.35 4.20 4.78

Taxes and insurance 12.13 11.14 11.64 9.61 8.78 9.20
Fixed cash expense, excluding interest 19.71 17.21 18.46 14.96 12.98 13.97

Interest 12.20 11.33 11.77 9.47 8.27 8.87

Fixed cash expenses including interest 31.91 28.54 30.23 24.43 21.25 22.84

Total cash expenses excluding interest 82.42 76.79 79.61 70.48 66.30 68.39
Total cash expenses including interest 94.62 88.12 91.37 79.95 74.57 77.26

Cash cost per unit of crop produced Dollars Per Bushel Dollars Per Bushel
excluding interest $1.89 $1.62 1.76 $2.87 $2.13 2.50
including interest $2.17 $1.86 2.02 $3.25 $2.40 2.83

1/ Cost of purchased irrigation water and baling.

1/ Cost of purchased irrigation water and baling.

Corn
Item 1997 1998 Avg. 97-98

Yield (bushels per planted acre) 96 111 103.50

Operating costs: Dollars per planted acre

Seed 27.59 27.60 27.60
Fertilizer, lime, and gypsum 26.49 22.37 24.43
Soil conditioners 0.00 0.00 0.00
Manure 0.00 0.00 0.00
 Chemicals 19.00 19.41 19.21
Custom operations 2/ 21.34 21.49 21.42
Fuel, lube, and electricity 20.95 19.75 20.35
Repairs 17.55 18.24 17.90
Hired labor 1.78 1.78 1.78
Other variable cash expenses 3/ 0.25 0.24 0.25
Total, operating costs 134.95 130.88 132.92

General farm overhead 7.15 6.75 6.95

Taxes and insurance 9.77 9.78 9.78
Fixed cash expense, excluding interest 16.92 16.53 16.73

Interest on operating capital 3.41 3.09 3.25

Fixed cash expenses including interest 20.33 19.62 19.98

Total cash expenses excluding interest 151.87 147.41 149.64

Total cash expenses including interest 155.28 150.50 152.89

Cash cost per unit of crop produced Dollars Per Bushel

excluding interest $1.58 $1.33 1.45
including interest $1.62 $1.36 1.49

Allocated overhead: -- Non Cash Costs Dollars per planted acre

Opportunity cost of unpaid labor 22.77 23.10 22.94
Capital recovery of machinery and equi 56.52 59.30 57.91
Opportunity cost of land (rental rate) 53.57 55.33 54.45
Total allocated overhead - Non-cash or estimat 132.86 137.73 135.30

Total costs after addition of "Allocated overhead"

excluding interest 284.73 285.14 284.94
including interest 288.14 288.23 288.19

Supporting information:
Enterprise size (planted acres) 1/ 301 301
Production practices: 1/
Irrigated (percent) 39 39
Dryland (percent) 61 61

1/ For 1996 survey base year only. 2/ Cost of custom operations, technical services and commercial drying. 3/ Cost of p

Sugar Beets-North West Sugar Beets-Great Plains

1997 1998 Avg 97-98 1997 1998 Avg 97-98

Yield (net tons/planted acre) 2/ 27.40 27.81 27.61 18.32 20.06 19.19
Cash expenses: Dollars per planted acre Dollars per planted acre
Seed 46.31 47.98 47.15 47.69 49.88 48.79
Fertilizer 121.94 109.52 115.73 88.02 80.66 84.34
Chemicals 82.79 83.05 82.92 77.22 75.77 76.50
Custom operations 36.54 37.64 37.09 22.78 20.36 21.57
Fuel and lubrication 96.85 90.63 93.74 55.13 45.41 50.27
Repairs 66.93 66.24 66.59 55.89 57.88 56.89
Hired labor 198.59 204.63 201.61 111.98 119.13 115.56
Purchased irrigation water 31.25 30.22 30.74 13.68 14.34 14.01
Freight and dirt hauling charges 16.79 12.92 14.86 17.81 17.20 17.51
Miscellaneous 5.89 5.63 5.76 6.44 6.24 6.34
Hauling allowance (-) 1.76 1.34 1.55 2.01 1.38 1.70
Total, variable cash expenses 702.12 687.12 694.62 494.63 485.49 490.06

General farm overhead 48.10 45.36 46.73 46.06 44.07 45.07

Taxes and insurance 38.77 39.60 39.19 41.34 42.63 41.99
Fixed cash expense, excluding interest 86.87 84.96 85.92 87.40 86.70 87.05

Interest 47.05 49.55 48.30 52.98 57.00 54.99

Fixed cash expenses including interest 133.92 134.51 134.22 140.38 143.70 142.04

Total cash expenses excluding interest 788.99 772.08 780.54 582.03 572.19 577.11
Total cash expenses including interest 836.04 821.63 828.84 635.01 629.19 632.10

Cash cost per unit of crop produced Dollars Per Ton Dollars Per Ton
excluding interest $28.80 $27.76 28.28 $31.77 $28.52 30.15
including interest $30.51 $29.54 30.03 $34.66 $31.37 33.01

1/ 1997 estimates are revised. 1998 estimates are preliminary. Sugarbeet prices are held at the 1997 level because State-le
are those reported in USDA's 1992 Farm Costs and Returns Survey of sugarbeet growers adjusted for year-over-year change
Note: Sugar beet regions defined as: Great Lakes (Michigan, Ohio), Red River Valley (Minnesota, eastern North Dakota), Grea
Northwest (Idaho, Oregon except Klamath County), and Southwest (California, Klamath County of Oregon).
 1998. Source USDA - ERS
/www.ers.usda.gov/Briefing/farmincome/data.htm

Oats
1997 1998 Avg. 97-98

68.62 65.89 67.26

Dollars per planted acre

6.72 3.97 5.35
9.62 8.46 9.04
2.32 2.32 2.32
2.41 2.41 2.41
10.59 9.11 9.85
14.75 13.73 14.24
0.36 0.38 0.37
0.45 0.40 0.43
47.22 40.78 44.00

3.77 3.56 3.67

7.75 7.61 7.68
11.52 11.17 11.35

5.13 5.40 5.27

16.65 16.57 16.61

58.74 51.95 55.35

63.87 57.35 60.61

Dollars Per Bushel

$0.86 $0.79 0.82
$0.93 $0.87 0.90

2/ Cost of custom operations and technical services. 3/ Cost of baling.

d irrigation water and baling.
mmercial drying. 3/ Cost of purchased irrigation water.
e 1997 level because State-level prices for the 1998 season will not be available before January 2000. 2/ Yields
ted for year-over-year changes as reported by NASS/USDA in Crop Production, 1998 Summary, January 1999.
a, eastern North Dakota), Great Plains (western North Dakota, Montana, Wyoming, Nebraska, Colorado, Texas),
This sheet includes cost of production estimates for Cow-calf and dairy operations.
Goto: Dairy
Page down for additional cow-calf and dairy budgets

Cow-calf production costs and returns per bredcow, 1997-98

Northern Great Plains Fruitful Rim

1997 1998 Avg. 97-98 1997 1998 Avg. 97-98

Dollars Per Head

Gross value of production:
Steer calves 132.77 132.69 132.73 72.73 72.45 72.59
Heifer calves 82.78 82.34 82.56 50.19 49.90 50.05
Yearling steers 111.54 102.98 107.26 52.93 50.83 51.88
Yearling heifers 32.88 30.06 31.47 21.12 20.17 20.65
Other cattle 84.55 82.51 83.53 59.37 57.86 58.62
Total gross value of production 444.52 430.58 437.55 256.34 251.21 253.78

Operating costs:
Feeder cattle 15.29 13.89 14.59 106.97 104.47 105.72
Feed:
Concentrates and other feed 22.53 20.26 21.40 23.16 22.66 22.91
Supplemental feed 42.98 32.35 37.67 4.02 3.23 3.63
Harvested forages 121.75 96.27 109.01 80.04 70.08 75.06
Cropland pasture 9.16 7.31 8.24 3.78 3.72 3.75
Private pasture 124.50 111.10 117.80 194.62 169.57 182.10
Public land 5.80 4.58 5.19 1.89 1.93 1.91
Total feed costs 326.72 271.87 299.30 307.51 271.19 289.35
Other:
Veterinary and medicine 14.73 15.38 15.06 35.29 35.08 35.19
Bedding and litter 0.21 0.22 0.22 0.43 0.41 0.42
Marketing 6.37 6.63 6.50 4.54 4.56 4.55
Custom operations 29.33 31.08 30.21 55.60 54.78 55.19
Fuel, lube, and electricity 16.41 16.44 16.43 22.28 22.28 22.28
Repairs 21.62 22.69 22.16 18.67 18.61 18.64
Interest on operating inputs 10.75 10.05 10.40 13.39 12.53 12.96
Total operating costs 441.43 388.25 414.84 564.68 523.91 544.30

Allocated overhead:
Hired labor 0.64 0.65 0.65 14.24 15.28 14.76
Opportunity cost of unpaid labor 302.94 309.71 306.33 255.25 263.29 259.27
Capital recovery cost of machinery a 76.71 74.76 75.74 75.19 71.62 73.41
Opportunity cost of land 2.79 2.89 2.84 0.95 0.94 0.95
Taxes and insurance 31.27 33.33 32.30 29.65 31.15 30.40
General farm overhead 57.50 54.98 56.24 57.14 53.86 55.50
Total allocated overhead 471.85 476.32 474.09 432.42 436.14 434.28

Total Cash Cost Excluding Interest /1 520.09 467.16 493.63 652.32 611.67 632.00
Total Cash Cost Including Interest /2 530.84 477.21 504.03 665.71 624.20 644.96
Total Cost Excluding Interest /3 902.53 854.52 878.53 983.71 947.52 965.62
Total Cost Including Interest /4 913.28 864.57 888.93 997.10 960.05 978.58

/1 Excludes Interest on operating inputs, Opportunity Cost o f unpaid labor, Capital recovery costs of machinery, Opportunity cost of lan
/2 Includes interest on operating but excluses Opportunity Cost o f unpaid labor, Capital recovery costs of machinery, Opportunity cost o
/3 Includes all costs listed except interest on operating inputs
/4 Includes all costs listed

Milk production costs and returns, per cwt sold, 1997-98

Pacific Upper Midwest

Item 1997 1998 Avg. 97-98 1997 1998 Avg. 97-98

Gross value of production: Per Cwt/. Sold Per Cwt/. Sold

Milk 12.77 15.07 13.92 13.32 15.48 14.40
Cattle 0.63 0.61 0.62 0.97 0.94 0.96
Other income 0.56 0.56 0.56 0.75 0.68 0.72
Total, gross value of production 13.96 16.24 15.10 15.04 17.10 16.07

Cash expenses:
Feed--
Concentrates 3.17 2.94 3.06 4.53 4.07 4.30
By-products 0.48 0.47 0.48 0.12 0.13 0.13
Liquid whey 0.05 0.05 0.05 0.17 0.18 0.18
Hay 2.71 2.34 2.53 1.36 1.14 1.25
Silage 1.10 0.95 1.03 1.99 1.67 1.83
Pasture and other forage 0.20 0.12 0.16 0.12 0.14 0.13
Total, feed costs 7.71 6.87 7.29 8.29 7.33 7.81
Other--
Hauling 0.39 0.38 0.39 0.29 0.29 0.29
Artificial insemination 0.12 0.11 0.12 0.18 0.17 0.18
Veterinary and medicine 0.20 0.20 0.20 0.50 0.49 0.50
Bedding and litter 0.05 0.05 0.05 0.35 0.34 0.35
Marketing 0.45 0.44 0.45 0.29 0.29 0.29
Custom services and supplies 0.41 0.39 0.40 0.39 0.39 0.39
Fuel, lube, and electricity 0.29 0.26 0.28 0.61 0.56 0.59
Repairs 0.31 0.32 0.32 1.09 1.13 1.11
Hired labor 0.54 0.52 0.53 0.53 0.50 0.52
DHIA fees 0.07 0.07 0.07 0.08 0.08 0.08
Dairy assessment 0.00 0.00 0.00 0.00 0.00 0.00
Total, variable cash expenses 10.54 9.61 10.08 12.60 11.57 12.09

General farm overhead 0.38 0.39 0.39 0.73 0.75 0.74

Taxes and insurance 0.13 0.14 0.14 0.42 0.46 0.44
Fixed cash expense, excluding interest 0.51 0.53 1.15 1.21

Interest 0.62 0.71 0.67 1.13 1.29 1.21

 Fixed cash expenses including interest 1.13 1.24 1.19 2.28 2.50 2.39

Total cash expenses excluding interest 11.05 10.14 10.60 13.75 12.78 13.27
Total cash expenses including interest 11.67 10.85 11.26 14.88 14.07 14.48
 Basin and Range
1997 1998 Avg. 97-98

Head

141.35 139.46 140.41

87.11 86.45 86.78
126.48 123.64 125.06
54.08 51.75 52.92
76.68 72.79 74.74
485.70 474.09 479.90

6.90 6.79 6.85

10.73 9.60 10.17

3.10 2.27 2.69
129.46 118.51 123.99
8.49 5.52 7.01
188.16 123.56 155.86
5.53 3.71 4.62
345.47 263.17 304.32

16.57 16.07 16.32

0.67 0.66 0.67
5.94 5.77 5.86
25.29 24.48 24.89
18.84 18.81 18.83
17.70 17.10 17.40
10.79 10.11 10.45
448.17 362.96 405.57

1.25 1.32 1.29

364.79 377.53 371.16
67.52 63.73 65.63
1.48 1.47 1.48
29.04 30.55 29.80
58.05 54.75 56.40
522.13 529.35 525.74

525.72 439.47 482.60

536.51 449.58 493.05
 959.51 882.20 920.86
970.30 892.31 931.31

hinery, Opportunity cost of land

machinery, Opportunity cost of land
 List of defaults and/or assumptions used in this spreadsheet template.
1 Bulls are assumed to have a three year life and are always fully depreciated when they are sold.
All bull revenue is treated just like "ordinary income," even though it is listed under Capital Gains/Loss on Breeding Livestock.
See the Enterprise tab of this template in cell block I21 throught L31.
2 Bulls (or other male breeding livestock, Rams for example) are the only type of purchased breeding livestock included in the initial setup.
Female breeding livestock are always raised and assigned a base value by the user. However, the user can enter any type
of purchased breeding livestock on the Enterprise tab under the Purchase/Contribute/Distribute Capital Asset section starting
in cell A81
3 No asset sales, or death loss of breeding livestock, etc. is allowed in this spreadsheet.
4 The beginning and ending values on the balance sheet for current assets and liabilities are (should) always be the same.
This eliminates accrual adjustments on the income statement prior to the user entering or changing a specific number to
show an accrual income or expense. It simplifies teaching the concepts.
5 Due to the design of this spreadsheet, interest and depreciation are handled separately from the basic cost of production figures entered
for each enterprise. This is necessary to calculate and display principle and interest for all loans on the various financial statements.
It is important that these numbers are separated out of the enterprise cost of production figures, to the best of your ability, remembering
that this template is basically designed to teach interaction of and how to interrupt financial statements.
Separate out:
Interest or opportunity costs charged on operating costs
Interest or opportunity costs charged on capital assets
Depreciation on capital assets included in the enterprise costs
6 Some basic assumptions about timing are included when making entries to illustrate assest purchases, receiving captial contributions,
or making capital distributions.
It is always assumed, in this system of financial statements, that these activities happen at the end of the
year when there is no opportunity for a purchased or contributed asset to generate any additional
revenue to be included in this analysis year.
The assumption with distributed assests is the revenue from that particular asset has already been received during the
year and no reduction in revenue occurs because of the asset's disappearance from the balance sheet during the year.
 This assumptions helps to illustrate the fact that the mear purchase of an asset will not increase equity, I.e. you can
not buy equity. You must employ the asset in a manner that earns equity through increasing the revenue stream or
reducing the expense stream, hence increasing net income.
7 If using the purchase capital asset section on the Enterprise tab, the assumption is that, if financied, no P & I payment is made on the asset
during the year of purchase. Other expenses like taxes, and insurance are also not made during the year of purchase.
 eding Livestock.

uded in the initial setup.

et section starting

ction figures entered

ancial statements.
ability, remembering

ptial contributions,
ent is made on the asset