Business analysis of container nurseries in Florida

J. Robert Strain
Alan W. Hodges

Economic Information
Report 255

Business Analysis of Container
Nurseries in Florida, 1987

Central Science
Library
JUN 11989
University of Florida

Food & Resource Economics Department
Agricultural Experiment Stations and
Cooperative Extension Service
College of Agriculture
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611

December 1988

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ABSTRACT

Average sales, costs, returns, and efficiency indicators are presented for 42 wholesale

woody ornamental container nurseries in Florida, for the tax year of 1987. Plant sales

averaged $399,828, and growth in the value of plant inventory during the year was $73,225.

When adjustments were made for changes in inventories and miscellaneous income, total gain

for the year was $485,034. Total costs of production, including cash expenses and non-cash

allowances for depreciation, but excluding any returns to the operator averaged $393,842. Net

nursery income averaged $91,192. Capital investment including plant inventory, land, equipment,

buildings, supplies, and accounts receivable amounted to $916,796. Average return on capital

investment was 6.1 percent. Average returns (to owner-operator and capital) per square foot

of growing area were $.179. Comparable information is presented also for subsamples of largest

and smallest nurseries.

KEY WORDS: Woody ornamental container nursery business analysis, income, costs,

investment, efficiency measures, Florida.

ACKNOWLEDGEMENTS

This report was made possible by the cooperating woody ornamental container nursery

operators who made available their production and accounting records on a confidential basis

for analysis and averaging. In addition, assistance and encouragement were supplied by

Extension Ornamental Horticultural Agents John Begeman, John Brenneman, Gary Brinen, Terry

Delvalle, Larry Halsey, Loretta Hodyss, Mike Holsinger, DeArmand Hull, Linda Landrum, Peter

Mitchell, Cathy Neal, Roger Newton, Bill Phillips, LaRue Robinson, Bill Schall, Bob Whittey,

Uday Yadav, and Victor Yingst. Acknowledgement and appreciation of the help received,

however, does not alter the fact that errors in the data or in the interpretation of the

information presented herein are the sole responsibility of the authors.

ABSTRACT

Average sales, costs, returns, and efficiency indicators are presented for 42 wholesale

woody ornamental container nurseries in Florida, for the tax year of 1987. Plant sales

averaged $399,828, and growth in the value of plant inventory during the year was $73,225.

When adjustments were made for changes in inventories and miscellaneous income, total gain

for the year was $485,034. Total costs of production, including cash expenses and non-cash

allowances for depreciation, but excluding any returns to the operator averaged $393,842. Net

nursery income averaged $91,192. Capital investment including plant inventory, land, equipment,

buildings, supplies, and accounts receivable amounted to $916,796. Average return on capital

investment was 6.1 percent. Average returns (to owner-operator and capital) per square foot

of growing area were $.179. Comparable information is presented also for subsamples of largest

and smallest nurseries.

KEY WORDS: Woody ornamental container nursery business analysis, income, costs,

investment, efficiency measures, Florida.

ACKNOWLEDGEMENTS

This report was made possible by the cooperating woody ornamental container nursery

operators who made available their production and accounting records on a confidential basis

for analysis and averaging. In addition, assistance and encouragement were supplied by

Extension Ornamental Horticultural Agents John Begeman, John Brenneman, Gary Brinen, Terry

Delvalle, Larry Halsey, Loretta Hodyss, Mike Holsinger, DeArmand Hull, Linda Landrum, Peter

Mitchell, Cathy Neal, Roger Newton, Bill Phillips, LaRue Robinson, Bill Schall, Bob Whittey,

Uday Yadav, and Victor Yingst. Acknowledgement and appreciation of the help received,

however, does not alter the fact that errors in the data or in the interpretation of the

information presented herein are the sole responsibility of the authors.

TABLE OF CONTENTS

ABSTRACT ......................
ACKNOWLEDGEMENTS ............ ...
LIST OF FIGURES ...................
LIST OF TABLES. ...................
LIST OF APPENDIX TABLES .............
INTRODUCTION ........... ........
PROCEDURE .....................
DATA AND RESULTS .................
Size of Business ..................
Sales and Total Value of Production ......
Annual sales ...............
Monthly sales ..............
Land, Labor and Capital ........... .
Land: growing area ........... .
Labor: full-time equivalent persons .
Capital: owned and managed . .
Productivity Indicators . . . .
Land Use . . . . .
Labor Use . .. . . .
Capital Use . . . . .
Capital turnover . . . .
Capital managed per person . .
Capital managed per acre . . .
Distribution of managed capital . .
Costs of Production . . . .
Costs by expense category* . .
Costs as a percent of the total cost* .
Cost Efficiency ................
Cost per square foot of growing area .
Cost per dollar's worth of production .
Cash costs per dollar of sales . .
Income Summary ...............
Total gain . . . .
Cost deductions and net nursery income ..
Return to capital . . . .
Statement of Financial Position . . .
A ssets . . . . .
Cash on hand ..............
Accounts receivable . . .
Inventory values . . . .
Total current assets. . . .
Long term assets . . . .
Total assets . . .. ..

* These sections also contain the following subcategories:
Salaries and wages
Production supplies Total cash costs
Other production costs Non-cash costs
Administrative and overhead Total all costs

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TABLE OF CONTENTS (Continued)

Liabilities . . . . . . . . 26
Current liabilities . . . .. . . .. 22
Long term liabilities .................. ...... 26
Total liabilities. ........... .................... 26
Net Worth ................... ............. 27
Total Profitability Model . . . . . . . 27
Margin Management . . . . . . 27
Asset Management . . . .. .. . . 27
Leverage Management . . . . . . 27

CONCLUDING COMMENTS . . . . . . . 29

APPENDIX . . .
Definitions . . .
Making Your Own Calculations
Appendix Tables .......

.............

LIST OF FIGURES

Figure

1 Sales and Total Value of Production . .

2 Monthly Sales ...............

3 Land: Growing Area (Acres) ........

4 Labor: Number of Personss .........

5 Capital Managed ..............

6 Land Use: Value of Production Per Square Fool

7 Labor Use: Value of Production Per Person .

8 Capital Turnover. . . . .

9 Capital Managed Per Person ........

10 Capital Managed Per Acre .........

11 Distribution of Managed Capital . .

12 Distribution of Costs of Production . .

13 Costs Per Square Foot of Growing Area .

14 Costs Per Dollar's Worth of Production .

15 Cash Costs Per Dollar of Sales .......

16 Distribution of Total Gain .........

17 Return to Capital .............

18 Assets and Liabilities ............

19 Total Profitability Model ..........

Pe

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4

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LIST OF TABLES
Table Pag

1 Sales, growing area, people and capital, 42 woody ornamental container
nurseries in Florida, 1987 .................. ....... 4

2 Costs of production, 42 woody ornamental container nurseries in Florida, 1987. 14

3 Income summary, 42 woody ornamental container nurseries in Florida, 1987 . 21

LIST OF APPENDIX DATA TABLES

Appendix Table Page

1 Size of business, 42 woody ornamental container nurseries in Florida, 1987 .... .35

2 Land use indicators, 42 woody ornamental container nurseries in Florida, 1987 35

3 Labor use indicators, 42 woody ornamental container nurseries in Florida, 1987 36

4 Capital use indicators, 42 woody ornamental container nurseries in Florida, 1987 36

5 Costs by expense category, 42 woody ornamental container nurseries in Florida,
1987 . . . . . . . . . 37

6 Percent of total costs by expense category, 42 woody ornamental container
nurseries in Florida, 1987 .. ....... .. .... .. .. ..... 38

7 Costs per acre of production area, 42 woody ornamental container nurseries in
Florida, 1987 . . . . . . . ... 39

8 Costs per dollar's worth of production, 42 woody ornamental container nurseries
in Florida, 1987 . . . . . . . 40

9 Cost per dollar's worth of sales (no adjustment for change in plant
inventory), 42 woody ornamental container nurseries in Florida, 1987 .... .41

10 Income summary, 42 woody ornamental container nurseries in Florida, 1987 . 42

11 Statement of Financial Position, 42 woody ornamental container nurseries in
Florida, 1987 . . . . . . . ... 42

BUSINESS ANALYSIS OF CONTAINER NURSERIES IN FLORIDA, 1987

J. Robert Strain and Alan Hodges

INTRODUCTION

This publication contains information on sales, costs, returns and production efficiency

for woody ornamental container nurseries in Florida for 1987. Other publications in this

series include reports on woody ornamental field nurseries, South Florida foliage plant

nurseries, Central Florida foliage plant nurseries and flowering plant nurseries. Purposes of the

nursery business analysis series include:

1) Furnishing nursery operators with various physical and economic measures for

evaluating the efficiency of individual nurseries and for making more informed management

decisions;

2) Providing individuals considering entering the wholesale ornamental plant production

business with an estimate of the input requirement and revenue potential;

3) Providing industry investors with representative measures of average business

performance.

4) Providing Florida Extension personnel with business information for conducting

educational programs with nursery operators.

J. ROBERT STRAIN is an extension economist and professor, and ALAN HODGES is an
economic analyst, both in IFAS Food and Resource Economics Department.

PROCEDURE
The information and averages presented in this report are based on data supplied
by nursery operators in the form of confidential production and accounting records.
They participated in the program voluntarily and do not represent a statistically selected
average. However, the nursery operators participating in the Florida Nursery Business
Analysis Program are thought to represent some of the more efficient woody ornamental
container nurseries in Florida, rather than being typical of the woody ornamental container
nursery industry.
Data were collected for the fiscal year 1987. In most cases, this was for January through
December. For the others, data for fiscal years ending after July 1, 1986, and before July 1,
1988 were included as 1987 data.
Not all nursery operators received a regular salary from their operation. In these cases,
an estimate of the value of the time of the operator was collected and used in the analysis in
order to provide a more equitable basis for comparing data. For the same reason, interest
expense paid by the individual nursery operator was excluded from the costs listed in this
report, and instead, an interest charge for the total owned investment was included as a
non-cash cost, calculated at the rate of 12 percent per year.
The owned capital investment reflects the depreciated book value of buildings,
improvements, machinery and equipment. Growing plants also are included as a part of the
owned capital investment, at a value reflecting their average wholesale price, and discounted
in proportion to the percentage of completion. In absence of detailed cost accounting records,
a commonly accepted method of evaluating inventory for an ongoing concern, is to value all
plants at 50 percent of their wholesale price. Some nursery operators use slightly different
methods, and for this report, the values received from operators were the values used. Land
included in owned capital investment was valued at the original purchase price. Although
this represents the actual investment in a nursery operation, it may not reflect the
replacement cost, particularly for older firms.
The tables and figures present average values for all 42 nurseries, for the average of
approximately the largest third of the firms (12), and for approximately the smallest third of
the firms (15). Largest firms had sales of own plants greater than $500,000, while the
smallest nurseries had sales less than $200,000.

On charts where lines appear indicating the range of data, the upper line represents the
average of the highest third of firms for the particular measure, and the lower line is the
average for the lowest third. Nursery operators analyzing their own operations may find this
information especially valuable for indicating the general area of their business needing
additional study and analysis.
Nurseries participating in the program were located in the Florida counties of Alachua,
Broward, Baker, Collier, Dade, Hillsborough, Jefferson, Lake, Lee, Leon, Marion, Martin,
Orange, Palm Beach, Pinellas, Polk, Sarasota, and Volusia. Nursery operators received an
analysis for their own operation, which contained similar information as used in this report,
shortly after they supplied their data.

DATA AND RESULTS
The key findings of this report appear in the text in the form of charts and graphs. The
data from which they were derived may be found in the appendix tables at the end of this
report. The appendix tables include notations on calculations involved for those who may wish
to examine figures in further detail, and spaces are provided for entering figures pertaining to
your own firm for comparison. Where tables appear in this report, arithmetic inconsistencies
from rounding may be noted.

Size of Businessi
Size of business data in Appendix Table 1 (summarized in Table 1) presents basic
information on size of business and scale of production operations. When combined with costs
of production in Appendix Table 5, these data provide the basis for developing most of the
measures and indicators shown in the other tables and figures in this report.
Sales and Total Value of Production
Annual sales. Sales figures used in this analysis represent only plants produced by the
nursery firm itself. In other words, if any plants were purchased for immediate resale, or
"brokered", their value was deducted from total sales to give the value of own plants sold.
Figure 1 illustrates the differences in the sizes of the industry average, largest, and smallest
woody ornamental container nurseries. Own plant sales averaged $399,828 for all nurseries,
$886,793 for the largest nurseries, and $85,288 for the smallest nurseries (Table 1).

SSee Appendix Table I on page 35 for complete data.

Table 1--Sales, growing area, full-time equivalent employees, and capital, 42 woody ornamental
container nurseries in Florida, 1987.
Average All Largest Smallest
ITEM unit Nurseries Third (12) Third (16)

Value of own plants sold . . .... .
Change in plant inventory value ........ .
Total value of production. . . ...

Total nursery area . .

Full-time equivalent employees .
Capital owned . . .
Leased/rented capital items .
Capital managed . . .

399,828 886,793
73,225 159,965
473,053 1,046,757

. .... sq.ft. 508,794
acres 11.68
. .number 13.09
. 916,796
. $ 113,560
..... $ 1,030,355

1,111,390
25.51
28.94
2,043,811
170,042
2,213,853

See Appendix Table 1 for more detail.

Figure 1

Sales and Total Value of Production
42 Woody Orn. Container Nurseries, 1987

Dollars (Thousands)

800-..

600

400

200 5 Sales Ivalue of Production

All Nurseries Largest Third Smallest Third

85,288.
44,813
130,101
112,312
2.58
3.47
324,945
25,000
349,945

Total value of production during the year adjusts sales for change in the value of the
plant inventory. Increases in the value of plant inventory during the year mean the total value
of the year's productive activities was greater than sales. Decreases in the value of plant
inventory means the total value of productive effort was less than sales. For all three
averages, plant inventory change was positive, giving a total value of production of $473,053
for all nurseries, $1,046,757 for the largest nurseries, and $130,101 for the smallest nurseries
(Table 1).
Monthly sales. Figure 2 shows the pattern of monthly sales for all nurseries, largest
nurseries and smallest nurseries. The pattern for all nurseries showed a strong peak in sales
during the spring months of the year, and a secondary peak in October. Sales for the highest
month were $47,190, which was 71 percent greater than those for the lowest month ($27,641).
Sales for the four months of January through April accounted for 41 percent of the year's
total sales.

Figure 2
Monthly Sales
42 Woody Orn. Container Nurseries, 1987

Dollars (Thousands)
120

100

80
-- Largest Third
60 --- All Nurseries

S40 Smallest Third
4 0 .- .- ... .... ......... ui ....... -- :;~;:

O
Jan FebMar AprMayJun Jul AugSepOctNovDec
Month

Land. Labor and Capital
Land: growing area. Growing area refers to that portion of the total nursery used to
grow plants. Hence, space used for roads, driveways, ditches, fence rows, office, machinery
sheds, and the like are not included. Growing area averaged 11.7 acres for all nurseries,
25.5 acres for largest nurseries, and 2.6 acres for the smallest nurseries (Table 1 and Figure
3).

Figure 3
Land: Growing Area
42 Woody Orn. Container Nurseries, 1987
Acres
o

20 -

AlJ Njre'ies Luageat Third SmilleS Third

Labor: full-time equivalent persons. The number of full-time equivalent persons involved
in the nursery operation is obtained by dividing total labor hours, including the time of
salaried non-hourly workers and managers, by the number of hours in a normal working year
(40 hours per week times 52 weeks per year equals 2,080 hours). Average number of full-time
equivalent persons involved for all nurseries was 13.1; for the largest it was 28.9, and for the
smallest nurseries it was 3.5 (Table 1 and Figure 4).

Figure 4
Labor: Number of Persons
42 Woody Orn. Container Nurseries, 1987

2080 hours/full-time equivalent

Capital: owned and managed. Capital owned is the current value (original cost less
depreciation taken) of capital assets in the nursery operation. This includes plants in
inventory as well as land, buildings, equipment, accounts receivable, and cash or bank-book
balance. Capital owned averaged $916,796 for all nurseries, $2.044 million for the largest
firms, and $324,945 for the smallest. Related debt is not deducted in this determination of
the value of capital owned.
Capital managed is the value of capital owned plus the value of additional capital items
used and under the control of the manager, such as leased property. Capital managed
averaged $1.030 million for all nurseries, $2.214 million for the largest nurseries, and $349,945
for the smallest nurseries (Table 1 and Figure 5).

Figure 5

Capital Managed
42 Woody Orn. Container Nurseries, 1987

2500

2000

1500

1000

500

0

Thousands)

All Nurseries Largest Third Smallest Third

Capital managed is owned plus leased.

Productivity Indicators
Land Use2
The traditional indicator of efficiency in the use of land is value of production per
square foot or per acre of growing area. Value of production is annual sales of own plants
adjusted for change in the value of plant inventory. Average rates of production per square
foot were $.930 for all nurseries, $.942 for the largest firms, and $1.158 for the smallest. In
terms of rate of production per acre, these figures translate into $40,499 per acre for all
nurseries, $40,500 per acre for the largest nurseries, and $50,460 per acre for smallest (Figure
6). Highest annual rates of production were $79,279 per acre, while the lowest rates averaged
$21,344 per acre.
In general, other things being equal, increasing sales per square foot of production area
should increase the profitability of a nursery operation. However, this alone does not
necessarily predict high profitability because other things may not be equal. Lower sales per
acre of growing area can result from a number of things, such as letting plants continue to
grow after reaching salable size, letting space sit vacant too long between the time a plant
is sold and another is put in place to start growing again, selecting varieties that grow slower
or are priced low relative to their growing time and space requirements, and having disease

Figure 6

Land Use: Value of Production/Sq. Ft.
42 Woody Orn. Container Nurseries, 1987

Dollars/Sq.Ft,
2.00
r 1 n-"Highest Rates
SLowest Rates

1.50

0.50 -

0.00 01
All Nurseries Largest Third Smallest Third

2 See Appendix Table 2 on page 35 for complete data.

and quality problems that reduce yields of salable plants. In addition, nursery layout and
fertilizing and growing techniques can alter the time and space used for the same crop in two
different nurseries. Also, markets and marketing programs can alter the returns received by
two different nurseries for the same crop.
Plant inventory value per acre in production is another indicator of efficiency in the
use of land. This averaged $56,349 for all nurseries, $59,497 for largest nurseies, and $93,468
for the smallest nurseries, or nearly double the average of all nurseries. For ongoing
operations, low plant inventory values per acre imply either inefficient use of land or unwise
selection of crops grown in terms of the relationship between their price and growing area
requirements

Labor Use3
Value of production per full-time equivalent person (2080 hrs/year) is a valuable
measure of efficiency in the use of labor. This indicator was relatively constant, averaging
$36,130 per person for all nurseries, $36,166 for the largest firms, and $37,536 for the smallest
(Figure 7). Highest rates of production per person averaged $66,315, and lowest rates were
$20,338 (Figure 7), representing a range about the industry average 84 percent above and 44
percent below, respectively.
If all other things are equal, higher sales per person is desirable. However,, seldom are all
other things equal. For example, higher sales per person when viewed alone might seem to
indicate true efficiency, but when viewed together with other indicators, it might instead show
a less than optimum number of employees for volume of plants being handled or space being
cared for. This could result in tardy or untimely plant care, hence, slower growth and/or
lower quality plus a failure to restock empty space promptly. In this case, other indicators
such as production rate, space use intensity, capital turnover, and costs per square foot would
not support the labor efficiency indicator.
Lower sales per person can result during periods of rapid expansion when extra help is
needed to care for a larger numbers of plants before they reach salable size. Lower sales per
person can also result during difficult economic times when sales are slow, but plant care
must continue. Variations among nurseries can be the result of differences in investment in
labor saving capital items, differences in any of the factors noted above that lower production
rate, or poor management practices in the utilization of labor.

3 See Appendix Table 3 on page 36 for complete data.

Figure 7
Labor Use: Value of Production/Person
42 Woody Orn. Container Nurseries, 1987

Dollars/Full-Time Equivalent Person
70000
II Highest Rates
6 0 0 0 0 .... ... ....... ......R..................................... Low est Ratee ......

50000

40000

30000

20000 .

All Nurseries Largest Third Smallest Third

An indicator of intensity in the use of labor is production area per person. Production
area averaged .89 acres per full-time equivalent person for all nurseries, .88 acres for the
largest firms, and .74 acres for the smallest. Stated another way, the number of persons per
acre averaged 1.13 for all nurseries and the largest nurseries, and 1.35 for the smallest
nurseries. Thus, the smallest container nurseries employed about 19 percent more labor per
acre than the other nurseries.

Capital Use4
Capital turnover. Annual turnover of owned capital value is the percentage that results
from dividing the value of own plants sold by the value of capital owned. Annual capital
turnover for all nurseries averaged 43.6 percent, for the largest nurseries 43.4 percent, and
for smallest 26.3 percent (Figure 8). This means that for the average of all nurseries, annual
sales were less than half of the capital investment, and for the smallest nurseries, sales were
about one quarter of capital investment. Highest turnover rates averaged 81 percent while the
lowest rates were 22 percent (Figure 8).
In general, larger percentage turnover numbers are desirable, for they indicate greater
sales per dollar of investment in the nursery. However, the turnover rate is affected by any
of the items already mentioned that lower production rate hence sales volume for a given
nursery investment. Low capital turnover is particularly common in nurseries just getting
started, or in nurseries that are expanding rapidly. Excessive investments in land, labor saving
machinery and equipment, or expensive (though maybe unnecessary) niceties will also tend to
lower captial turnover rate.

Figure 8

Capital Turnover
42 Woody Orn. Container Nurseries, 1987

Sales as a Percentage of Capital Owned
100%

8 0 % .. -.1--- ... . 1 ... .... ........ ............ .. ...... ....... ....................... ..................

6 0 % ................ ... ..........................,-,---.
60%
*'~ Highest Rates
\\ ,Lowest Rates
4 0 % ...... .......... .......... ........

40%

All Nurseries Largest Third Smallest Third

4 See Appendix Table 4 on page 36 for complete data.

Capital managed per person. Capital owned plus the value of capital items leased make
up the total capital managed in a nursery. Capital managed per full-time equivalent person
averaged $78,695 for all nurseries, $76,490 for the largest nurseries, and $100,964 for the
smallest nurseries (Figure 9). There were substantial variations among nurseries on this

measure. Highest rates for capital managed per person averaged $127,120, while the lowest
rates were $39,144 (Figure 9). This represented a range about the industry average of 62
percent above and 50 percent below, respectivley.
Capital managed per acre. Capital managed per acre of growing area averaged $88,213

per acre for all nurseries, $86,770 for the largest firms, and $135,726 for the smallest (Figure

10). The average investment per acre was significantly higher for the smallest nurseries,

nearly twice as high as the average for all nurseries. Highest rates averaged $168,196 per

acre, and the lowest rates were $47,759 per acre (Figure 10).

Figure 9 Figure 10
Capital Managed Per Person Capital Managed Per Acre
42 Woody Orn. Container Nurseries. 1987 42 Woody Orn. Container Nurseries, 1987
Dollars/Full-Time Eculvalent Person Dollars Per Acre (Thousands)

400006

SC..CC -
c 7q vCt ob
4 0 00 C~l~

accb ~Y ~UI 011~

200

100

60 .... ....
Ii[M _V VIl
1 CO oet e

All NurIewlgL Le.olt Third f1,illet T r A Nur r t Thir irAll i llm Lmt Thi i t third

Distribution of managed capital. The distribution of the capital investment among land,

buildings, equipment, etc. is an important area of concern in management. Figure 11 indicates
the percentage distribution of total capital managed for the average of all container nurseries
in 1987. Growing plants in inventory represented the largest share of capital managed, 63.9

percent. Next in importance was land, 17.3 percent. Other lesser areas of capital investment
were machinery and equipment (4.5 percent), buildings and installations (5.2 percent), supplies

(1.8 percent), accounts receivable (5.1 percent), and cash on hand (2.4 percent).

Figure 11
Distribution of Managed Capital
42 Woody Orn. Container Nurseries, 1987

Plants
63,9%

Accounts Rec,
5.1%
:: /Supplies/Cash
4,1%
Buildings/Instal,
5.2%
Machinery/Equip,
4,5%

Includes

capital

owned

plus capital leased

Land
17.3%

Costs of Production

Cost categories as itemized in Appendix Table 5 on page 37 and summarized in Table 2

below are considered to be a minimal breakdown for the costs of production in a container
nursery. As can be seen, costs of production as used in this report, include not only cash
outlays but also non-cash costs and allowances that must be covered over time if a business is
to remain viable. This includes a non-cash allowance for a minimum return on investment. The
rate in this report is 12 percent.

Table 2--Costs of Production, 42 woody ornamental container nurseries in Florida, 1987.

Average Largest Smallest
ITEM Alt Nurseries Third (12) Third (16)

ALL Salaries and Wages. ... $182,471 33.8% $397,305 33.6% $44,316 29.4%
Production Supplies ..... .. $141,803 26.3% $344,084 29.1% $36,906 24.5%
Other Production Costs. ... $27,000 5.0% $50,453 4.3% 58,840 5.9%
Administrative & Overhead $51,475 9.6% $105,045 8.9% $14,763 9.8%
Total Cash Costs . $402,749 74.7% $896,886 75.8% $104,824 69.6%
Non-Cash Costs . .... .. $136,441 25.3% $286,806 24.2% 545,803 30.4%
====== ===5 SS==== ====== ===
TOTAL ALL COSTS . ... $539,190 100.0% $1,183,692 100.0% $150,627 100.0%

see also Appendix Tables 5 and 6 for more detail

Costs by Expense Categorv5
Costs by expense category were summarized from the annual profit and loss statement or
tax records of the participating nurseries. The cost categories were grouped into wages and
salaries, production supplies, other production costs, administrative and overhead, and non-cash
costs. These figures provide benchmarks for the relative magnitude of various cost items, and
may provide guidance for persons evaluating a Florida container nursery, either as a buyer,
seller, or lender.
Salaries and wages. The salary and wage average includes the operator's salary or time
value, and employees wages, salaries, benefits, and other payroll costs. As described on page 2,
in some cases the operator's salary was zero or was not appropriate, so a time-value was
estimated based upon the operator's expected earnings, or previous experience. The operator's
salary or time value averaged $35,333 for all nurseries, $63,448 for the largest nurseries, and
$15,312 for the smallest nurseries. Wages, salaries, and associated expenses for employees

5 See Appendix Table 5 on page 37 for complete data.

averaged $147,138 for all nurseries, $333,857 for the largest, and $29,004 for the smallest.
Thus, total expenses on wages and salaries averaged $182,471 for all nurseries, $397,305 for
the largest, and $44,316 for the smallest nurseries (Table 2).
Production supplies. Expenses in this average include plants and seeds, containers, peat
and soil, fertilizer and lime, pesticides and chemicals, and other production supplies. Expenses
for supplies for all nurseries averaged $141,803, for the largest nurseries $344,084, and for
smallest nurseries $36,906.
Other production costs. Other production costs are facility repairs/maintenance and
equipment operating costs. For all nurseries they averaged $27,000, for the largest nurseries
$50,453, and for the smallest $8,840.
Administrative and overhead. Administrative and overhead expenses usually cannot be
assigned to any particular crop or growing activity, yet must be covered in order to remain in
business. This average of expenses includes travel/trade shows, insurance, telephone, electric
power, advertising, rent, and other cash expenses. Administrative and overhead expenses
averaged $51,473 for all nurseries, $105,045 for the largest, and $14,763 for the smallest.
Total cash costs. Total cash costs, including all items mentioned above, averaged $402,749
for all nurseries, $896,886 for the largest, and $104,824 for the smallest nurseries.
Non-cash costs. Non-cash costs include depreciation allowances on capital assets,
decreases in supply inventory (using supplies purchased during a previous time period), and an
interest charge for the use of the capital invested in the nursery. These costs averaged
$136,441 for all nurseries, $286,806 for the largest, and $45,803 for the smallest firms.
Total all costs. Total costs averaged $539,190 for all nurseries, $,1,183,692 for the largest,
and $150,627 for the smallest nurseries.

Costs as a Percent of the Total Cost6
While expenditures in terms of dollars show the magnitude of expenses for various cost
categories, they are not very helpful for comparing cost relationships with industry averages
which may represent a significantly different size of business. But costs in terms of
percentage of the total are useful for this purpose. These are obtained by dividing each of the
dollar expense items in Appendix Table 5 by the corresponding "Total all costs" figure at the
bottom of the table. Distribution of costs of production by category are shown graphically for
the average of all participants in Figure 12.

6 See Appendix Table 6 on page 38 for complete data.

Figure 12

Distribution of Costs of Production

42 Woody Orn. Container Nurseries, 1987

Labor
34%.

Non-Cash Costs

25%

Il Admin,/Overhead

10%

O

their

Prod. Costs
5%

Supplies
26%

............. ......~
. . . .
.............
...............
. . . . . .
. . . . . . .
. . . . . .
. . . . . . .
.............................
. . . . . .
. . . . . . . .
.. . . . . . ..
. . . . . ..
. . . . ..
. . . .-

Salaries and wages. Salaries and wages (includes operator) averaged, 33.8 percent of total
costs for all nurseries, 33.6 percent for the largest, and 29.4 percent for the smallest nurseries
(Table 2). The smallest container nurseries reported a significantly higher percentage of costs
in operator salaries (10.2 percent) than the industry average (6.6 percent), but a lower
percentage in employees wages and salaries (19.3 percent vs. 27.3 percent). Employees wages
and salaries were highest for the largest nurseries (28.2 percent).
Production suDplies. Expenses on production supplies ("plants and seeds" through "other
production supplies") also fluctuated considerably among nurseries. Average costs for all
nurseries were 26.3 percent of total costs, for the largest nurseries 29.1 percent, and for the
smallest nurseries 24.5 percent. The greatest share of expenses for this category was "plants
and seeds" (8.4 percent to 9.4 percent). Expenses on growing containers were next highest,
and showed the largest proportional variation, being 2.9 percent for the smallest nurseries, 6.1
percent for all nurseries, and 7.6 percent for the largest.
Other production costs. Other production costs ("facility repairs" and "equipment
operation") were relatively stable, averaging 5.0 percent for all nurseries, 4.3 percent for the
largest, and 5.9 percent for the smallest nurseries.
Administrative and overhead. Overhead costs ("travel" through "other cash expense")
averaged 9.6 percent of total costs for all nurseries, 8.9 percent for the largest, and 9.8
percent for the smallest. Thus, there is some indication of economy of scale for these
overhead expenses.
Total cash costs. Total cash costs as a percent of all costs for container nurseries were
very close for the average of all nurseries and the largest nurseries (74.7 percent and 75.8
percent). The smallest container nurseries were about 6 points lower, at 69.6 percent.
Non-cash costs. Non-cash costs ("depreciation" through "interest on capital") averaged
25.3 percent of total costs for all nurseries, 24.2 percent for the largest, and 30.4 percent for
the smallest. Thus, the lower percentage cash costs for the smallest nurseries were offset by
their higher percentage non-cash costs. The greatest share of differences in non-cash costs
were due to interest on capital: 20.6 percent for all nurseries, 20.7 percent for largest, and
25.9 percent for the smallest. Depreciation on equipment, buildings, and other property
improvements ranged from 3.5 to 5.2 percent of total costs during the three years.

Cost Efficiency
While expenses as a percent of total costs facilitate comparing operating statements, they
do not allow easy comparison of growing costs in relation to the physical factors of
production or to product revenue. Costs per square foot of growing area and costs per dollar
value of production are therefore important indicators.

Costs Per Sauare Foot of Growing Area7
These figures were obtained by dividing each of the dollar cost figures in Appendix Table
5 by the area in production shown in Appendix Table 1. This is growing area only, not
including, drives, roadways, ditches, etc. Cash costs per square foot (excluding depreciation,
interest, etc.) averaged $.79 for all nurseries, $.81 for the largest, and $.93 for the smallest
nurseries. Total costs per square foot of growing area averaged $1.06 for all nurseries, $1.07
for the largest, and $1.34 for the smallest (Figure 13). Highest cost rates averaged $2.03 per
square foot, and the lowest cost rates were $.75 (Figure 13), giving a range of $1.28 per
square foot.
Other things being equal, a lower cost per square foot is desirable. Problems that cause
costs per square foot to increase include inefficient planning and utilization of labor,
insufficient investment in labor saving capital items, destruction or theft of supplies and

Figure 13
Costs Per Square Foot of Growing Area
42 Woody Orn. Container Nurseries, 1987

Dollars/Sq.Ft.

2.50 -
2 .0 0 H ig heS t R a tes ................... ................................ ......... ................. ............
-4- Lowest Rates

ES Cash Costs

1 .0 0 ................ ................... .. ....................................

0.50

A An

All Nurseries Largest Third Smallest Third

7 See Appendix Table 7 on page 39 for complete data.

Mi.....Mi

plants, not checking for best price before purchasing needs, and not carefully managing the
nursery operation. Other causes of increased costs may not be a problem if they result in
increased revenue.

Costs Per Dollar's Worth of Production8
Costs per dollar value of production (sales adjusted for changes in plant inventory value)
is a direct measure of long-term profitability. This is calculated by dividing the dollar costs
(Appendix Table 5) by the value of own plants sold adjusted for change in plant inventory
value (Table 1, and Appendix Table 1). So, a $1.00 cost per dollar value of production
represents the breakeven cost level. Total costs per dollar value of production for all
container nurseries averaged $1.14, for the largest nurseries its was $1.13, and for the smallest
nurseries $1.16 (Figure 14). Thus, average total costs for all nurseries were 14 percent above
the breakeven level. Highest cost firms averaged $1.93 per dollar value of production, while
the lowest cost firms achieved an average of $.79, which was 21 points below breakeven
(Figure 14). The deficit in costs per dollar value of production for the industry average does
not actually represent a "loss" in this case, but merely a failure to meet the fair return
allowance for interest on capital, as will be seen later in the section "Income Summary".

Figure 14
Costs Per Dollar's Worth of Production
42 Woody Orn. Container Nurseries, 1987

Dollars/Dollar
2.00
0 -*0 Highest Rates
4- Lowest Rates
1 .5 0 ... ................... ............................................................. ...................... N o n -C a s h C o s ts
SCash Costs

Breakeven os :
1.0 0 ............... .. .:j. .j. :::::::::::::: :-:ii. ;: -- ...............

0.50

0.00
All Nurseries Largest Third Smallest Third

8 See Appendix Table 8 on page 40 for complete data.

Cash Costs Per Dollar of Sales9
While total business position is indicated by costs per dollar of sales adjusted for changes
in inventory value, ability to meet current liabilities depends upon costs relative to cash
received. These figures were developed by dividing the dollar costs shown in Table 2 (or
Appendix Table 5) by the value of own plants sold from Table 1. Average cash costs per dollar
of sales was $1.01 for all nurseries, $1.01 for the largest nurseries, and $1.23 for the smallest
(Figure 15). These results indicate a rather serious problem for the smallest nurseries. Their
current operating expenses were 23 cents per dollar higher than sales. Highest cost firms
averaged $1.52 per dollar of sales, and the lowest cost firms had cash costs of 81 cents per
dollar of sales (Figure 15).

Figure 15
Cash Costs Per Dollar of Sales
42 Woody Orn. Container Nurseries, 1987

Dollars/Dollar
1.60
1.40
1 .4 0 ..... ............. .............. .................. .................................. ......... ............. .. .............. .................................

1 .2 0 ...........

1.0 0 .......-.-. .. ....... ....

All Nurser Largest Third Smallet Third te
0.80 -

In general, lower costs per dollar of sales are desirable. Rising costs per dollar of sales

are very common during periods of rapid expansion, because extra costs of a larger operation
0.80

0.40
0.20

0.00
All Nurseries Largest Third Smallest Third

In general, lower costs per dollar of sales are desirable. Rising costs per dollar of sales
are very common during periods of rapid expansion, because extra costs of a larger operation
are incurred before the nursery can experience accompanying extra sales. During inflationary
times, failure to get price increases as fast as costs are going up will also cause higher costs
per dollar of sales. While prices received are not always under the direct control of the
nursery operator, other things mentioned earlier are under his or her direction that affect
rates of production, level of costs, and labor efficiency. Examples include letting plants
continue to grow after reaching salable size without getting any price premium for them,

9 See Appendix Table 9 on page 41 for complete data.

letting space sit vacant too long after plants are sold, selecting varieties that grow slower or
are priced low relative to their growing time and space requirements, having disease and
quality problems that reduce the yield of salable plants, failing to plan and manage for
efficient utilization of labor, ignoring needed investments in labor saving equipment and
facilities, not shopping for the best price before purchasing needs, experiencing theft or
destruction of plants or supplies, practicing less than optimum fertilizing and growing
techniques, and pursuing less desirable markets and marketing programs.

Income Summar0
This section concentrates on developing net nursery income and allocating it between
the owner-operator and a return on the investment in the operation. It is for a payment on
his or her time that a nursery operator works, and it is for a return to capital that nursery
operators and lending institutions invest funds in nursery operations. Figure 16 shows the
components of income summarized, and Table 3 arrays the data used for the figure.

Table 3--Income Summary, 42 woody ornamental container nurseries in Florida, 1987.

Average All Largest Smallest
ITEM unit Nurseries Third (12) Third (16)

TOTAL GAIN . . . .... 485,034 1,076,490 132,838
Total Cost Deductions . . ... (393,842) (874,987) (96,322)
NET NURSERY INCOME ............... $ 91,192 201,504 36,516
Operator's salary or time value. ...... S (35,333) (63,448) (15,312)
RETURN TO CAPITAL. . . .... 55,859 138,056 21,204
--Percent................... X 6.09 6.75 6.53

see also Appendix Table 10 for more detail.

Total Gain
Total gain refers to the total value produced by the year's operations: the sum of plant
sales, changes in plant and supply inventory values, and miscellaneous income. Increases in
inventories of supplies averaged $7,278 for all nurseries, $19,837 for the largest firms, and
$1,007 for the smallest nurseries. Miscellaneous income refers to income received from sources
other than plant sales, including rent, interest on accounts, delivery or packaging charges, and
sales of supplies. This averaged $4,703 for all nurseries, $9,896 for the largest, and $1,730 for
the smallest firms. Total gain averaged $485,034 for the all nurseries, $1,076,490 for the
largest nurseries, and $132,838 for the smallest.

10 See Appendix Table 10 on page 42 for complete data.

Figure 16
Distribution of Total Gain
42 Wo'ody Orn. Container Nurseries, 1987

Dollars (Thousands)
1200

1 0 0 0 .............................................................. ........................................................

12 Return to Capital
8 0 0 ............................................................. R return to O operator
DE Expensee
.... .. x .........................
4 0 0 .................

200

All Nurseries Largest Third Smallest Third

Cost Deductions and Net Nursery Income
Total costs except the operator's salary and allowance for interest on capital are
deducted from total gain to give net nursery income. Total deductions averaged $393,842 for
all nurseries, $874,987 for the largest firms, and $96,322 for the smallest.
Net nursery income is the total return for the year for the time and managerial skills of
the operator plus the capital invested in the operation. Average net nursery income was
$91,192 for all nurseries, $201,504 for the largest, and $36,516 for the smallest nurseries.
Return to Capital
From net nursery income is subtracted the salary or time value of the owner-operator to
obtain that part of net nursery income attributable to capital. This is the earnings of the
investment in the nursery. When the owner and operator are the same person, dividing net
nursery income between the operator and return to capital may not seem important. However,
when the owners are outside investors, accurate division is important. Average operator
salaries were given in the previous section "Costs by Expense Category." Return to capital
averaged $55,859 for all nurseries, $138,056 for the largest nurseries, and $21,204 for the
smallest firms.

Dividing net nursery income by the value of capital invested gives the rate of return on
the investment. Rate of return is a very commonly used indicator for evaluating an
investment or for selecting between investment alternatives. For example, this is equivalent to
the widely quoted yields for capital market instruments such as certificates of deposit,
treasury notes, bonds, etc., which are reported on an annualized basis unless otherwise noted.
Average value of capital invested for each of the three years was given in Table 1. Figure 17
shows that average rate of return on capital was 6.1 percent for all nurseries, 6.8 percent for
the largest nurseries, and 6.5 percent for smallest. Thus, for every dollar invested in these
container nurseries, there was an average return of 6.1 cents. The deficit of 14 points in costs
per dollar value of production for all nurseries, as discussed above, was not a loss, but simply
a return on investment somewhat less than the 12 percent allowance. Highest rates of return
averaged 32.0 percent, and lowest rates were minus 19.8 percent (Figure 17).

Figure 17
Return to Capital
42 Woody Orn. Container Nurseries, 1987

Percent Return to Capital Owned

M .--2 Highest Rates
IL- Lowest Rates
r ir ^t .. ... .. ........- ... ......... ....................................................... 4

All Nurseries Largest Third Smallest Third

Statement of Financial Position 11
The statement of financial position summarizes the assets and liabilities of container
nurseries. These data represent the mid-year financial situation of the nurseries, derived as an
average of year-beginning and year-end balance sheet figures. Figure 18 illustrates the major
components of the statement of financial position for container nurseries.

Assets
Current assets represent cash, or items deemed convertible to cash within one year's
time: cash on hand, accounts receivable, and inventory values.
Cash on hand includes funds in checking accounts, savings accounts, and money market
funds. Average cash on hand was $24,179 for all nurseries, $62,064 for the largest nurseries,
and $6,479 for the smallest firms. The main function of cash on hand is to pay for current
liabilities. As a percentage of total cash costs, these current liabilities represented 6.0 percent,
6.9 percent, and 6.2 percent, respectivley.
Accounts receivable are uncollected payments due from all sources. The majority
of these are trade accounts for plants sold. Generally, this figure should be minimized because
uncollected funds deprive the firm of their use. Accounts receivable averaged $52,047 for all
nurseries, $145,406 for the largest, and $6,373 for the smallest firms. As a percentage of
annual sales, these amounts represented 13.0 percent, 16.4 percent, and 7.5 percent,
respectivley. So, the smallest nurseries were considerably better in collecting on account, or
were more averse to accepting sales on risky accounts.
Inventory values include growing plants and supplies, which were presented previously in
Table 1. The combined value of inventories averaged $676,324 for all nurseries, $1,559,890 for
the largest firms, and $247,283 for the smallest nurseries. Woody ornamental plants in
container production may not be considered a current asset to some because much of the
inventory normally would not be sold for one or more years hence. However, the inventory
data collected were supposed to represent the market value of the crops in their current state
of development, so plant inventory is reported as a current asset.
Total current assets averaged $752,550 for all nurseries, $1,767,359 for the largest, and
$260,135 for the smallest nurseries.

11 See Appendix Table 11 on page 42 for complete data.

Figure 18

Assets and Liabilities

42 Woody Orn. Container Nurseries, 1987

Dollars (Thousands)

K

All Nurseries

2500

2000

1500

1000

500

0

E Currdnt Assets

EZ Long Term Assets

I I Current Liabilities

E:I Long Term Llabil.

E Net Worth

Largest

Smallest

....................... ... ........ ..............................

--- """""po'tw'''w

i

. ... ......

nnn

. . . I
.............
.............
..............
............
.............
...... ......
..............
..............
..............

...........
..............
..............
............
.............

NMI

~
1r1
1
~r
~r
r~r

r+r+

Long Term Assets are investments in buildings, machinery and land that normally would
not be converted to cash within a year. Current values of investments are the original cost
less accumulated depreciation. Comparing original cost with the value remaining after
subtracting accumulated depreciation provides an idea of the degree to which capital assets
have been depleted. Original investments averaged $268,331 for all nurseries, $463,119 for the
largest, and $88,926 for the smallest nurseries. Subtracting accumulated depreciation left a
current value of $164,245 for all nurseries, $276,453 for the largest, and $64,811 for the
smallest nurseries. As a percentage of the original investment, these current values represent
61.2 percent, 59.7 percent, and 72.9 percent, respectively. Thus, the smallest nurseries had the
least depleted long term assets.
Total assets are the sum of short term and long term assets gives average total assets of
$916,796 for all nurseries, $2,043,811 for the largest, and $324,945 for the smallest nurseries.
These amounts are the same as reported for "total owned capital" in Table 1 and Appendix
Table 1.

Liabilities
Liabilities may be "current" (payable during the current year) or "long term" (payable
at some time after the current year).
Current liabilities averaged $22,395 for all nurseries, $52,834 for the largest, and $7,251
for the smallest firms. The ratio of cash and accounts receivable to current liabilities, known
as the "quick ratio", is a standard indicator of liquidity, the ability to pay current operating
expenses. The quick ratio averaged 3.40 for all nurseries, 3.93 for the largest firms, and 1.77
for the smallest nurseries. The smallest nurseries may have somewhat less liquidity than is
desirable, but still should be able to to meet current obligations.
Long term liabilities include notes payable and mortgages. They averaged $153,979 for all
nurseries, $278,252 for the largest, and $46,028 for the smallest nurseries. The ratio of current
liabilities to long term liabilities was .145 for all firms, .064 for largest, and .158 for the
smallest firms.
Total liabilities. The sum of current and long-term liabilities gives average total liabilities
of $176,375 for all nurseries, $331,085 for the largest, and $53,278 for the smallest firms. The
ratio of total assets to total liabilities was 5.2, 6.2, and 6.1, respectively, which represents an
extremely sound financial position in all cases.

Net Worth
Net worth is the difference between total assets and total liabilities. This is the actual
value of the owner's share of the assets, as opposed to the lenders'claims. The average net
worth for all container nurseries averaged was $740,421, for the largest it was $1,712,726, and
for the smallest $271,667.

Total Profitability Model
The Total Profitability Model combines information from the operating statement and
statement of financial position in a graphical presentation to illustrate how assets, liabilities,
and profit margin work together to yield the firm's return on net worth. Figure 19 shows the
three sections of the profitability model: margin management, asset management and leverage
management. Data for the largest nurseries, all nurseries, and smallest nurseries are given in
the top, middle, and bottom of each cell in the model, respectively. Data for the industry
average will be discussed here to clarify the calculations.
Margin Management
From total gain ($485,034) is subtracted total deductions ($393,842) and the operator's
salary ($35,333) to give return to capital ($55,859). This is divided by total gain to yield an
average net profit margin of 11.5 percent.
Asset Management
Current assets ($752,550) plus long term assets ($164,245) make'total assets of $916,796.
This is divided into total gain ($485,034) to give an asset turnover rate of 0.53. Asset turnover
multiplied by net profit margin (11.5 percent) results in an average return to capital of 6.1
percent.
Leverage Management
Current liabilities ($22,395) plus long term liabilities ($153,979) gives average total
liabilities of $176,375. This is subtracted from total assets to yield average net worth of
$740,421. Total liabilities plus net worth ($916,796) divided by net worth gives a leverage
factor of 1.24. This is the ratio of total assets under one's control to net worth. In other
words, earnings on the total capital involved in the nursery belong to the owner and represent
earnings on the owner's net investment in the nursery, his net worth. Hence, a leverage of
1.24 means that every dollar of net worth in the nursery is earning at the rate of 1.24 times
the earnings of the total investment. Therefore, leverage times rate of return to capital (6.1
percent) gives a return on net worth of 7.6 percent.

MARGIN MANAGEMENT

NET PROFIT
MARGIN

RATE OF
RETURN TO
CAPITAl

RETURN ON

LEVERAGE MANAGEMENT

TOTAL LIABILITIES .

Figure 19.--Total profitability model, 42 container nurseries in Florida, 1987

CONCLUDING COMMENTS
Nursery operators who are interested in seeing how they compare with those
participating in the Florida Nursery Business Analysis Program may calculate their own
numbers. The Appendix tables are structured for this purpose. The formulas for making these
calculations are shown for each line in Appendix Tables 2 through 4. The results may be
written on the lines provided for this purpose on each table. Another alternative is to
acquire the University of Florida microcomputer program, WOODYNBA.BAS, for making
these calculations. Either alternative should provide some valuable insight into the business
side .of operating a woody ornamental nursery. It should improve management decisions
concerning things that affect the profitability of the nursery operation.
Nursery operators who find this kind of information useful, but have difficulty finding
the time or energy to engage in the tedium of doing their own calculation may wish to
consider becoming a participant in the Florida Nursery Business Analysis Program. We
especially need more participants in the Container Nursery program to provide sounder and
statistically more reliable averages. If you would like to become a participant, contact your
ornamental agent in your nearby county Extension office, or contact the authors in
Gainesville. Nursery operators who authorize a commercial accounting firm to supply the data
required for the program can participate with a minimum of effort on their part.

UkiuarsitU of Florldo

.m -u

APPENDIX
Appendix Table of Contents

Definitions ....................... .............. 32
Making your own calculations ............................. .33
Appendix Tables .................................... 35

List of Appendix Data Tables

Appendix Table Page

1 Size of business, 42 woody ornamental container nurseries in Florida, 1987 ..... 35

2 Land use indicators, 42 woody ornamental container nurseries in Florida, 1987 35

3 Labor use indicators, 42 woody ornamental container nurseries in Florida, 1987 36

4 Capital use indicators, 42 woody ornamental container nurseries in Florida, 1987 36

5 Costs by expense category, 42 woody ornamental container nurseries in Florida, 1987 37

6 Percent of total costs by expense category, 42 woody ornamental container nurseries
in Florida, 1987 . . . . . . . 38

7 Costs per acre of production area, 42 woody ornamental container nurseries in
Florida, 1987 . . . . . . . ... 39

8 Costs per dollar's worth of production, 42 woody ornamental container nurseries
in Florida, 1987 . . . . . . . 40

9 Cost per dollar's worth of sales (no adjustment for change in plant inventory),
42 woody ornamental container nurseries in Florida, 1987 . .... 41

10 Income summary, 42 woody ornamental container nurseries in Florida, 1987 . 42

11 Statement of Financial Position, 42 woody ornamental container nurseries in
Florida, 1987 . . . . . . .. .. 42

DEFINITIONS

Value of own plants sold: the value of total plant sales minus the cost of plants
purchased for immediate resale. The cost of plants purchased for growing-on are not deducted.

Full-time equivalent employee: the equivalent of one person working 40 hours a week for
52 weeks a year (2080 hours a year). The most common method for obtaining the number of
full-time persons for this report was to divide the total annual payroll hours for the nursery
by 2080, then add the number of family and management people not paid on an hourly basis.

Capital owned: the current value (cost less depreciation taken in prior years) of capital
assets, or current investment in the nursery operation. Related debt is not deducted in this
determination of the value of capital owned.

Capital managed: the value of capital owned plus the value of additional capital items
used and under the control of the manager. Rented land and leased buildings, equipment, etc.,
would be added to the value of capital owned to obtain the value of capital managed in the
nursery operation.

Annual turnover of capital: the percentage that results from dividing the value of own
plants sold by the value of capital (either owned or managed). It is annual plant sales stated
in terms of percent of the capital involved.

Total gain: the sum of plant sales, changes in plant and supply inventories, and
miscellaneous cash income. It represents the total effect of the year's operation, be it in the
form of cash received of in the form of change in values of inventories.

Net nursery income: the net effect of the year's operation. To obtain it, all cash costs
(except operator's salary), and all non-cash costs (except the 12 percent non-cash interest
allowance on capital) are subtracted from total gain. The result is the return for the time and
managerial skills of the operator, and for the use of the capital invested in the operation.

Return to capital: the portion of net nursery income that is left after subtracting the
salary or time value of the operator. It is what the owned capital earned.

Rate of return on capital: return to capital divided by the value of owned capital. It is
the rate earned on the capital invested.

MAKING YOUR OWN CALCULATIONS

For those who wish to analyze their own operation and compare the results with the
findings of this report, we have two options. One is a manual method. To do it manually,
you need to collect for your nursery the data shown in Appendix Table 1 and Appendix
Table 5. Lines are provided for entry of your data. Then, calculate your nursery data for
each line of Appendix Tables 2, 3 and 4. The formula for making that calculation is shown on
each line. For example, the first line of Appendix Table 2, "Value of own plants sold per
square foot" shows a formula in parentheses of Table IA/IC. The slash mark (/) stands for
division. The Table IA stands for the A line of Appendix Table 1, and IC stands for the C
line. Hence, to calculate your "Value of own plant sold per acre,"divide your sales figure on
line A of Appendix Table I by your acres of growing area on line C of Appendix Table 1.
And so on for each line of Appendix Tables 2, 3 and 4.

Calculations starting with Appendix Table 6 and continuing through Appendix Table 9
are similar. These calculations are made by dividing each line of Appendix Table 5 by the
appropriate figure as follows:

For Appendix Table 6, divide by your total all costs figure at the bottom of Appendix
Table 5

For Appendix Table 7, divide by your square footage figure on line D (or square feet
figure on line C if your prefer) of Appendix Table 1.

For Appendix Table 8, divide by your total value of production figure on line B of
Appendix Table 1.

For Appendix Table 9, divide by your sales figure on line A of Appendix Table 1

For Appendix Tables 10 and 11, formulas are not shown. However completion of your own
data set for those tables is needed in order for you to utilize the profitability model.
Instructions for Appendix Table 10 are as follows:

Line A: Value of own plants sold .... .Appendix Table 1, line A
Line B: Change in plant inventory value .. Appendix Table 1, line B minus line A
Line C: Supply inventory increase . from your beginning and ending
supply inventory data, not
shown previously
Line D: Miscellaneous income ...... from your business records, not
shown previously
Line E: Total gain . . ... sum of lines A, B, C and D.
Line F: Deduct cash costs . ... from Appendix Table 5 (subtract
operators salary)
Line G: Deduct non-cash costs . .. from Appendix Table 5 (subtract
interest on capital)
Line H: Total deductions . ... sum lines F and G
Line I: Net nursery income . ... line E minus line H
Line J: Deduct operator's salary .... .from line 1 of Table 5
Line K: Return to capital . . line I minus line J
Line L: Rate of return to capital .... .line K divided by Appendix
Table 1, line M

Instructions for Appendix Table 11 are as follows:

Line A: Cash on hand . .
Line B: Accounts receivable .
Line C: Plant inventory . .
Line D: Supply inventory .
Line E: Total current assets .
Line F: Machinery & equipment.
Line G: Buildings and fixtures
Line H: Land . . .

..... .Appendix Table 1 line L
..... .Appendix Table 1 line K
..... .Appendix Table 1 line F
..... .Appendix Table 1 line J
..... .sum lines A,B,C and D
..... .Appendix Table 1 line H
..... .Appendix Table 1 line I
..... .Appendix Table I line G

(Skip lines I and J if lines F, G, and H are depreciated values.
If not, use these two lines to get depreciated values.)
Line K: Total long term assets . .. sum lines F,G and H
Line L: Total assets . . .. sum lines E and I
Line M: Current liabilities . ... from your records, not shown in
earlier tables
Line N: Long term liabilities ...... from your records, not shown in
earlier tables
Line O: Total liabilities . ... sum line M and N
Line P: Net worth . . .... line L minus line O
Line Q: Total liabilities and net worth sum lines O and P

This data required for the profitability model.

A second alternative for performing your own business analysis for those of you who
have an MSDOS computer is to order IFAS microcomputer program number 003, WOODYNBA
for a cost of $20. Mailing address is:

IFAS Software Support Office
Building 120, Room 203
University of Florida
Gainesville, FL 32611

This program still requires you to collect the same data requested for the manual
calculation method described above, but once the data is entered, all calculations will be done
automatically for you.

Appendix Table 1--Size of Business, 42 woody ornamental container nurseries in Florida, 1987.

Average All Largest Smallest Your
ITEM unit Nurseries Third (12) Third (16) Nursery

A Value of own plants sold . . .
B Sales adjusted for plant inventory change. .

C Sq. ft of growing area . . .
0 --Acre equivalent of total nursery area. .
E Fulltime equivalent persons . . .
.............Capital Owned-------------
F Growing plants . . . .
G Land .. ... ... ... ..... ... ..
H Machinery & equipment . . .
I Bldgs, fences, wels . . . .
J Supply inventory . . . .
K Accounts receivable. . . . .
L Cash/checkbook balance . . .
M Total Owned Capital . . . .
.............Capital Managed---------- .-
N Growing plants . . . .
0 Land . . . . . .
P Machinery & equipment . . .
0 BLdgs, fences, wells . . . .
R Supply inventory . . . .
S Accounts receivable . . . .
T Cash/checkbook balance . . .

U Total Managed Capital . . .

S 399,828 886,793 85,288
S 473,053 1,046,757 130,101

sq.ft. 508,794
acres 11.68
number 13.09

S 658,176
S 69,661
S 45,823
S 48,761
S 18,148
$ 52,047
S 24,179
S 916,796

S 658,176
S 177,828
S 46,156
S 53,821
5 18,148
S 52,047
$ 24,179

$ 1,030,355

1,111,390
25.51
28.94

1,518,018
96,599
102,966
76,886
41,872
145,406
62,064
2,043,811

1,518,018
254,849
103,300
88,345
41,872
145,406
62,064

2,213,853

112,312
2.58
3.47

240,990
45,853
11,083
7,874
6,293
6,373
6,479
324,945

240,990
70,853
11,083
7,874
6,293
6,373
6,479

349,945

U33 EU3 33 3~ 33 E =E2W U EU. E 33UUI3U 333 EUUUUUUUU

Appendix Table 2--Land use indicators, 42 woody ornamental container nurseries in Florida, 1987.

Average ALL Largest Smallest Your
ITEM unit Nurseries Third (12) Third (16) Nursery
..................................... ............................................. .............

Value of plants sold/sq.ft (Table 1A/1C) cents
--adj. for change in inventory. (Table 1B/1C) cents

Value of own plants sold/acre (Table 1A/1D) S
--adj. for change in inventory. (Table 1B/1C) $
Plant inventory value/acre. (Table 1F/1D) S

78.6
93.0

34,231
40,500

56,349

79.8
94.2

75.9
115.8

34,757 33,079
41,027 50,460

59,497

93,468

UUU UUU UU UUU UUU UU UUZ EEEZU UEU WWS UUEDU UUZ UU UUU UUZ UU UUU UUU UU UUU UUU UU

Appendix Table 3--Labor use indicators, 42 woody ornamental container nurseries in Florida, 1987.

Average All Largest Smallest Your
ITEM unit Nurseries Third (12) Third (16) Nursery
.............................................................................o..ooo.o. .... o.. .- ... ..o o

Value of own plants sold/person*. .(Table 1A/1E)
Total Value of Production/person* .(Table 1B/1E)

S 30,537
S 36,130

Growing area/person* . .. .(Table 1C/1E) sq.ft. 38,860

30,639
36,166

38,399

24,607
37,536

32,403

* Full-time equivalent person (2080 hrs per year)

Appendix Table 4--Capital use indicators, 42 woody ornamental container nurseries in Florida, 1987.

Average ALL Largest Snallest Your
ITEM unit Nurseries Third (12) Third (16) Nursery
............................ .......... o .............. ..... .....o-o- ..... .... .oo. ..... o-. ...

Owned capital turnover . .(Table 1A/1M)
Managed capital turnover. . .(Table 1A/1U)

Capital owned per person* .. .(Table 1M/1E)
Capital managed per person* .(Table 1U/1E)

Capital owned per acre . .(Table 1M/1D
Capital managed per acre. . .(Table 1U/1D)

X 43.6
X 38.8

S 70,022
S 78,695

S 78,491
S 88,213

43.4 26.3
40.1 24.4

70,615 93,751
76,490 100,964

80,105 126,030
86,770 135,726

-*-Managed Capital Per Person* In---
Growing plants . .(Table
Land . . . ..(Table
Machinery & equipment . .. (Table
Bldgs, fences, wels. . .(Table
Accounts receivable . .(Table

--*Managed Capital Per Acre In--
Growing plants. . .. (Table
Land . . . .(Table
Machinery & equipment . .. (Table
BLdgs, fences, wells . .(Table
Accounts receivable . .(Table

---Distribution of Managed Capital In---
in growing plants . ... .(Table
in land .. ........ .(Table
in machinery & equipment .. (Table
in buildings & wells. . .(Table
in supply inventory . ... .(Table
in accounts receivable ... .(Table
in cash/checkbook balance .. .(Table

TOTAL . . . .

* Full-time equivalent person (2080 hrs per year)

50,269
13,582
3,525
4,111
1,386

56,349
15,225
3,952
4,608
1,554

1N/1E)
10/1E)
1P/1E)
10/1E)
1S/1E)

1N/ID)
10/1D)
1P/1D)
1Q/1D)
1S/10)

1N/1U)
10/1U)
1P/1U)
10/1U)
1R/1U)
1S/1U)
1T/1U)

52,448
8,805
3,569
3,052
1,447

59,497
9,989
4,049
3,463
1,641

68.6
11.5
4.7
4.0
1.9
6.6
2.8

100.0

69,529
20,442
3,198
2,272
1,816

93,468
27,480
4,299
3,054
2,441

68.9
20.3
3.2
2.3
1.8
1.8
1.9

100.0

63.9
17.3
4.5
5.2
1.8
5.1
2.4

100.0

Appendix Table 5--Costs by expense category, 42 woody ornamental container nurseries
in FLorida, 1987.
I.......l...........=... .== =s == .......= = = ...............................I....I.i=

ITEN

Operator's salary . . . .
Other wages ..................

LABOR TOTAL . . . . .

Plants & seeds. ......
Containers . ....
Peat & soil . .
Fertilizers & lime .
Pesticides & chemicals. .
Other production supplies .

SUPPLIES TOTAL . .

Facility repairs. . . . .
Equipment operation . . . .

OTHER PRODUCTION COSTS TOTAL . . .

Travel.. ............... .
Insurance ...................
Telephone ............... ......
Electricity .. .. ..... ... ......
Taxes & liscenses . . . .
Advertising ..................
Rent-land/buildings . . . .
Other cash costs. . . . .

ADMINISTRATIVE & OVERHEAD COSTS TOTAL . .

TOTAL CASH COSTS. . . . .

Depreciation-machinery/equipment . .
Depreciation-buiLdings/etc. . . .
Supply inventory decrease . . .
Interest on capital . . . .

TOTAL NON-CASH COSTS . . . .

TOTAL ALL COSTS . . . .

Average ALL Largest Smallest Your
units Nurseries Third (12) Third (16) Nursery

S

S
S
o o .. S
o o. S
. 5

35,333
147,138

182,471

45,279
32,603
24,501
16,176
9,202
14,043
141,803

11,917
15,083

27,000

4,585
7,731
3,142
4,980
3,632
3,944
8,219
15,244

51,475

402,749

16,923
9,503
0
110,015
136,441

539,190

63,448
333,857

397,305

111,478
90,203
57,544
33,715
20,299
30,844

344,084

23,912
26,541

50,453

10,435
15,986
5,319
10,084
4,309
6,656
22,694
29,560

105,045

896,886

26,305
15,244
0
245,257
........ ..
286,806

1,183,692

15,312
29,004

44,316

12,770
4,323
7,547
5,720
2,665
3,881

36,906

2,649
6,191

8,840

1,656
2,491
1,275
1,314
1,985
1,076
534
4,431

14,763

104,824

4,916
1,894
0
38,993

45,803
ass150,627a
150,627

IIIIIDIII~IPtl~lPPI=tPltrDIIIIII-l=I~==I

Appendix Table 6--Percent of total costs by expense category, 42 woody ornamental container
nurseries in Florida, 1987.
IEIIIisL Z l~tl~IImzZzzil2 ILltl8zlmlt mtIz1EIIzsz tllzRslzsl zz ZzZDz1=

ITEM

Operator's salary . . .. . .
Other wages . . .. . .

LABOR TOTAL . . .. . .

Plants & seeds . . .. . .
Containers . . .. . .
Peat & soil . . .. . .
Fertilizers & i . .. . .
Pesticides & chemicals. . .. . .
Other production supplies . .. . ...

SUPPLIES TOTAL . . .. . .

Facility repairs . . .. . ...
Equipment operation . .. . .

OTHER PRODUCTION COSTS TOTAL .. . .

Travel. . . . .. ..
Insurance . . . .. . .
Telephone . . . .. . .
Electricity . . .. . .
Taxes & liscenses . . .. . .
Advertising . . .. . .
Rent-land/budings . .. . .
Other cash costs . . .. . ...

ADMINISTRATIVE & OVERHEAD COSTS TOTAL . .

TOTAL CASH COSTS . . .. . ...

Depreciation-machinery/equipment... . .
Depreciation-buildings/etc. .. . .
Supply inventory decrease . .. . ...
Interest on capital . .. . .

TOTAL NON-CASH COSTS . .. . .

TOTAL ALL COSTS . . .. . .

Average All Largest Smallest Your
units Nurseries Third (12) Third (16) Nursery
................ .................... ..o............o..

6.6
27.3

33.8

8.4
6.0
4.5
3.0
1.7
2.6

26.3

2.2
2.8

5.0

0.9
1.4
0.6
0.9
0.7
0.7
1.5
2.8

9.5

74.7

3.1
1.8
0.0
20.4

25.3

100.0

5.4
28.2

33.6

9.4
7.6
4.9
2.8
1.7
2.6

29.1

2.0
2.2

4.3

0.9
1.4
0.4
0.9
0.4
0.6
1.9
2.5

8.9

75.8

2.2
1.3
0.0
20.7

24.2

100.0

10.2
19.3

29.4

8.5
2.9
5.0
3.8
1.8
2.6

24.5

1.8
4.1

5.9

1.1
1.7
0.8
0.9
1.3
0.7
0.4
2.9

9.8

69.6

3.3
1.3
0.0
25.9

30.4

100.0

~IPIClltDII-~CI~IIIltllLIIPIDIIICtLLIC

Appendix Table 7--Costs per square foot, 42 woody ornamental container nurseries in Florida, 1987.
RERWIWWEWILW WWIIW tllt L ZWW mmlassaamallmaall Dssa S IRssmaWWWWWBass lRama

ITEM
.........................

Average ALL Largest Smallest Your
units Nurseries Third (12) Third (16) Nursery
... ........... ....o..... ............ ..... ........ ............... ....... .... ......

Operator's salary . ...... .. cents
Other wages . . ... . cents

LABOR TOTAL . . ........ cents

Plants & seeds. . ..... . cents
Containers. . . .. .. .. cents
Peat & soil ................. .....cents
Fertilizers & ime. . .. . cents
Pesticides & chemicals. . .. . cents
Other production supplies ...... . cents

SUPPLIES TOTAL. . . .. . .. cents

Facility repairs. . . ........ cents
Equipment operation . ........ cents

OTHER PRODUCTION COSTS TOTAL .. . .cents

Travel .......................... cents
Insurance . . ..... ... cents
Telephone ........ ............ ..cents
Electricity ................ .... cents
Taxes & Liscenses . . .. .. cents
Advertising. . . ... . cents
Rent-Land/buildings . ........ cents
Other cash costs. . . ........ cents

ADMINISTRATIVE & OVERHEAD COSTS TOTAL ..... .cents

TOTAL CASH COSTS. . .... .. .. cents

Depreciation-machinery/equipment ... . .. cents
Depreciation-buiLdings/etc. ..... . cents
Supply inventory decrease . ........ cents
Interest on capital . ..... ... cents

TOTAL NON-CASH COSTS. . .. . cents

TOTAL ALL COSTS . ...... .. cents

6.9
28.9

35.9

8.9
6.4
4.8
3.2
1.8
2.8

27.9

2.3
3.0

5.3

0.9
1.5
0.6
1.0
0.7
0.8
1.6
3.0

10.1

79.2

3.3
1.9
0.0
21.6

26.8

106.0

5.7
30.0

35.8

10.0
8.1
5.2
3.0
1.8
2.8

31.0

2.2
2.4

4.5

0.9
1.4
0.5
0.9
0.4
0.6
2.0
2.7

9.5
samuasnazER
80.7

2.4
1.4
0.0
,22.1

25.8

106.5

13.6
25.8

39.5

11.4
3.8
6.7
5.1
2.4
3.5

32.9

2.4
5.5

7.9

1.5
2.2
1.1
1.2
1.8
1.0
0.5
4.0

13.1

93.3

4.4
1.7
0.0
34.7

40.8
134.1__

= I =f l mflrrr nfl zflrfflfltflrII~t

Appendix Table 8--Cost in cents per dollar's worth of production, 42 woody ornamental container
nurseries in Florida, 1987.
Average All Largest Smallest Your
ITEM units Nurseries Third (12) Third (16) Nursery
.o..o. ooo ....... o.o.. ooo.....o... .......... ....o ........ .o.. ...... ..ooo..ooo .....oo .o.o .o. o.. o-o ........

Operator's salary ...... ...
Other wages . . .. .

LABOR TOTAL . . .. .

Plants & seeds . . .. .
Containers . . .. .
Peat & soil . . .. .
Fertilizers & Lime. .. .......
Pesticides & chemicals .. .....
Other production supplies . .. .

SUPPLIES TOTAL . .

. cents
. cents

. cents

* cents
. cents
. cents
S. cents
. cents
. cents

. .. . cents

Facility repairs. . . ........ cents
Equipment operation . .. . cents

OTHER PRODUCTION COSTS TOTAL .. . .cents

7.5
31.1

38.6

9.6
6.9
5.2
3.4
2.0
3.0

30.0

2.5
3.2

5.7

Travel ................... .... cents 1.0
Insurance . . ... . cents 1.6
Telephone ..................... .cents 0.7
Electricity . . .......... cents 1.1
Taxes & liscenses . . ........ cents 0.8
Advertising ....................... cents 0.8
Rent-Land/buildings . .... . cents 1.7
Other cash costs. . . ........ cents 3.2

ADMINISTRATIVE & OVERHEAD COSTS TOTAL ..... .cents 10.9

TOTAL CASH COSTS. . . ........ cents 85.1

Depreciation-machinery/equipment. .. . .
Depreciation-buildings/etc. ..... . .
Supply inventory decrease ...... . .
Interest on capital ........ . .

TOTAL NON-CASH COSTS. ........ . .

TOTAL ALL COSTS . ... ......

cents
cents
cents
cents

cents

cents

3.6
2.0
0.0
23.3

28.8

114.0

6.1
31.9

38.0

10.7
8.6
5.5
3.2
1.9
2.9

32.9

2.3
2.5

4.8

1.0
1.5
0.5
1.0
0.4
0.6
2.2
2.8

10.0

85.7

2.5
1.5
0.0
23.4

27.4

113.1

11.8
22.3

34.1

9.8
3.3
5.8
4.4
2.1
3.0

28.4

2.0
4.8

6.8

1.3
1.9
1.0
1.0
1.5
0.8
0.4
3.4

11.3

80.6

3.8
1.5
0.0
30.0

35.2

115.8

PIDIIPIIPLDt~lPtlPr~r==III=I~II~-CIIIII

Appendix Table 9--Costs in cents per dollar's worth of sales (no adjustment for change in
in plant inventory), 42 woody ornamental container nurseries in Florida, 1987.

Average All Largest Smallest Your
ITEM units Nurseries Third (12) Third (16) Nursery

Operator's salary . . ........ .cents
Other wages . . ..... .. .. ... cents

LABOR TOTAL . . ....... cents

Plants & seeds . .
Containers . .
Peat & soil . .
Fertilizers & ifme .
Pesticides & chemicals.
Other production supplies

cents
cents
cents
cents
cents
cents

SUPPLIES TOTAL. . ....... .. cents

Facility repairs. . .... .. ... cents
Equipment operation. ..... . cents

OTHER PRODUCTION COSTS TOTAL. .. .

Travel . . . .. .
Insurance . . . .. .
Telephone . . . .. .
Electricity . . .. .
Taxes & licenses . . .. .
Advertising . . .. .
Rent-Land/buidings . .. .
Other cash costs . . .. .

cents

cents
cents
cents
cents
cents
cents
cents
cents

ADMINISTRATIVE & OVERHEAD COSTS TOTAL ..... .cents

8.8
36.8

45.6

11.3
8.2
6.1
4.0
2.3
3.5

35.5

3.0
3.8

6.8

1.2
1.9
0.8
1.3
0.9
1.0
2.1
3.8

12.9

TOTAL CASH COSTS. . . .. . cents 100.7

Depreciation-machinery/equipment.
Depreciation-buildings/etc .
Supply inventory decrease .
Interest on capital . .

cents
cents
cents
cents

TOTAL NON-CASH COSTS. . .. . cents

TOTAL ALL COSTS . ...... .. cents

4.2
2.4
0.0
27.5

34.1

134.9

7.2
37.7

44.8

12.6
10.2
6.5
3.8
2.3
3.5

38.8

2.7
3.0

5.7

1.2
1.8
0.6
1.1
0.5
0.8
2.6
3.3

11.9

101.1

3.0
1.7
0.0
27.7

32.3

133.5

18.0
34.0

52.0

15.0
5.1
8.9
6.7
3.1
4.6

43.3

3.1
7.3

10.4

1.9
2.9
1.5
1.5
2.3
1.3
0.6
5.2

17.3

122.9

5.8
2.2
0.0
45.7

53.7

176.6

tll-SSS*5SSSSSSSSSSUSSCSSSSSUSSUSSSSSSZ=

Appendix Table 10--Income Summary, 42 woody ornamental container nurseries in Florida, 1987.

Average All Largest Smallest Your
ITEM units Nurseries Third (12) Third (16) Nursery
..................................................................................................... ....

A Value of own plants sold . . .
B Change in plant inventory value . .
C Increase in supply inventory . . .
D Miscellaneous cash income . . .

E TOTAL GAIN . . . . .

F Deduct cash costs except operator's salary .
G Deduct non-cash costs except interest on capital

H Total Deductions . . . .

I NET NURSERY INCOME .. . .........
J Operator's salary or time value . ....

K RETURN TO CAPITAL .. ........
L Rate of Resturn to Capital . ......

$ 399,828
$ 73,225
$ 7,278
S 4,703

$ 485,034

S (367,416)
S (26,426)

S (393,842)

S 91,192
S (35,333)

S 55,859
X 6.09

886,793
159,965
19,837
9,896

1,076,490

(833,438)
(41,548)

(874,987)

201,504
(63,448)

138,056
6.75

85,288
44,813
1,007
1,730

132,838

(89,512)
(6,810)

(96,322)

36,516
(15,312)

21,204
6.53

Appendix Table 10--Statement of Financial Position, 42 woody ornamental container nurseries
in FLorida, 1987.
------t~-=--------------------------PI----------- =
Average ALL Largest Smallest Your
ITEM units Nurseries Third (12) Third (16) Nursery
..................................o......................................................................
CURRENT ASSETS- - - - - - - - - - -.
A Cash/checkbook balance ...... ....... 24,179 62,064 6,479
B Accounts receivable. ....... .......... $ 52,047 145,406 6,373
C Plant inventory value. . . .. S 658,176 1,518,018 240,990
D Supply inventory value ............. $ 18,148 41,872 6,293 _

E Total CURRENT Assets .............. $ 752,550 1,767,359 260,135

LONG TERM ASSETS- - - -
F Machinery & Equipment . .
G Buildings & Fixtures . .
H Land . . . .

I Sub-total (original cost) .

J Less Accumulated Depreciation. .

K Total LONG TERM Assets . .

L TOTAL ASSETS . . .

LIABILITIES AND NET WORTH- - -
M Current Liabilities . .
N Long Term Liabilities . .

0 Total LIABILITIES. . . . .

. . $ 103,893
. . 94,777
....... $ 69,661

. . .. $ 268,331

....... (104,086)

. . $ 164,245

. . .. $ 916,796

S 22,395
$ 153,979

$ 176,375

P NET WORTH. . . . . ... 740,421

0 TOTAL LIABILITIES & NET WORTH. . .. 916,796

213,441
153,079
96,599

463,119

186,667

276,452

2,043,811

52,834
278,252

331,085

1,717,726

2,043,811

25,612
17,461
45,853

88,926

(24,115)_

64,811

324,945

7,251
46,028

53,278

271,667
==324,945__
324,945

~~=L SI I= 33 = LI IIIIILSDI

~P'==I===LL-LIPIDIIPSIIPIIIIIt=='-OIS551

t t I. I..

MILLISECOND	CLASS.METHOD	MESSAGE
0	sobekcm_page_globals.constructor
0	sobekcm_page_globals.constructor	Application State validated or built
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.constructor	Navigation Object created from URI query string
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.display_item	Retrieving item or group information
0	sobekcm_page_globals.get_entire_collection_hierarchy	Retrieving hierarchy information
0	sobekcm_assistant.get_entire_collection_hierarchy
0	cached_data_manager.retrieve_item_aggregation
0	cached_data_manager.retrieve_item_aggregation	Found item aggregation on local cache
0	item_aggregation_builder.get_item_aggregation	Found 'all' item aggregation in cache
0	system.web.ui.page.page_load (ufdc.page_load)
0	sobekcm_page_globals.constructor.on_page_load
0	html_echo_mainwriter.add_style_references	Adding style references to HTML
0	html_echo_mainwriter.add_text_to_page	Reading the text from the file and echoing back to the output stream
1	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file

	Front Cover
	Title Page
	Abstract
	Acknowledgement
	Table of Contents
	List of Figures
	List of Tables
	Main
	Appendix
	Definitions
	Making your own calculations
	Tables