• TABLE OF CONTENTS
HIDE
 Copyright
 Title Page
 Abstract
 Acknowledgements
 Table of Contents
 List of Tables
 List of Figures
 Introduction
 Procedure
 Definitions
 Data and results
 Concluding comments






Group Title: Economic information report - Food and Resource Economics Department - 240
Title: Business analysis of flowering plant nurseries in Florida, 1986
CITATION PAGE IMAGE ZOOMABLE PAGE TEXT
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027377/00001
 Material Information
Title: Business analysis of flowering plant nurseries in Florida, 1986
Series Title: Economic information report
Alternate Title: Flowering plant nurseries in Florida
Physical Description: iv, 33 p. : ill. ; 28 cm.
Language: English
Creator: Strain, J. Robert
Hodges, Alan W ( Alan Wade ), 1959-
University of Florida -- Food and Resource Economics Dept
Publisher: Food & Resource Economics Dept., Agricultural Experiment Stations, Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville Fla
Publication Date: 1987
 Subjects
Subject: Nurseries (Horticulture) -- Economic aspects -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: J. Robert Strain, Alan W. Hodges.
General Note: "December 1987."
General Note: Cover title.
Funding: Florida Historical Agriculture and Rural Life
 Record Information
Bibliographic ID: UF00027377
Volume ID: VID00001
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: aleph - 001104676
oclc - 20975141
notis - AFK0845

Table of Contents
    Copyright
        Copyright
    Title Page
        Title Page
    Abstract
        Page i
    Acknowledgements
        Page i
    Table of Contents
        Page ii
    List of Tables
        Page iii
    List of Figures
        Page iv
    Introduction
        Page 1
    Procedure
        Page 1
        Page 2
    Definitions
        Page 3
    Data and results
        Page 4
        Size of business
            Page 4
            Page 5
        Rates of production
            Page 6
        Labor efficiency
            Page 7
        The use of space
            Page 8
            Page 9
        Efficiency in the use of capital
            Page 10
            Page 11
        Dollar costs by expense category
            Page 12
            Page 13
        Percent of total costs by expense category
            Page 14
            Page 15
        Cost per square foot of total bed and bench space
            Page 16
            Page 17
        Cost per square foot of propagating and finishing space
            Page 18
            Page 19
        Cost per dollar of sales adjusted for inventory change
            Page 20
            Page 21
        Costs per dollar of sales
            Page 22
            Page 23
        Income summary
            Page 24
            Page 25
            Total gain
                Page 24
            Net nursery income
                Page 24
            Return on capital
                Page 24
        Balance sheet
            Page 26
            Current assets
                Page 26
            Long term assets
                Page 26
            Total assets
                Page 26
            Liabilities
                Page 27
            Net worth
                Page 28
        Total profitability model
            Page 28
            Margin management
                Page 28
            Asset management
                Page 28
            Leverage management
                Page 28
                Page 29
        Range of figures
            Page 30
        Seasonality of sales
            Page 31
    Concluding comments
        Page 31
        Page 32
        Page 33
Full Text





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida






J. [I bert Strain
Alk- W. Hodges


Economic Information
Report 240


Business Analysis of Flowering Plant
Nurseries in Florida, 1986


I i,'... Science
/ Library r.
Kr ; 6; tO ,0 ,
iv s 0_ _


Food *. Resource Economics Department
Agricultural Experiment Stations
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


December 1987
















ABSTRACT


Average sales, costs and returns information are presented for
seven wholesale flowering plant nurseries in Florida for the tax year
of 1986. Average value of plant sales was $558,537. Cash costs
including a return to the operator averaged $506,172. Non-cash costs
and allowances including a 12 percent return on investment amounted to
another $71,349. Deducting the return to operator and return on
investment left total costs of $500,823. After adjustments for change
in plant inventory value and additions for miscellaneous income, net
nursery income averaged $86,618, and return to capital averaged 14.81
percent.

KEY WORDS: Flowering plant nursery business analysis, income,
costs, investment, efficiency measures, Florida.











ACKNOWLEDGEMENTS

This report was made possible by the cooperating seven flowering
plant nursery operators who made available their production and
accounting records on a confidential basis for analysis and averaging.
Assistance and encouragement were supplied by Extension Ornamental
Horticultural Agents Bruce Barmby, Gary Brinen, Terry DelValle and
DeArmand Hull. 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 and returns information are presented for
seven wholesale flowering plant nurseries in Florida for the tax year
of 1986. Average value of plant sales was $558,537. Cash costs
including a return to the operator averaged $506,172. Non-cash costs
and allowances including a 12 percent return on investment amounted to
another $71,349. Deducting the return to operator and return on
investment left total costs of $500,823. After adjustments for change
in plant inventory value and additions for miscellaneous income, net
nursery income averaged $86,618, and return to capital averaged 14.81
percent.

KEY WORDS: Flowering plant nursery business analysis, income,
costs, investment, efficiency measures, Florida.











ACKNOWLEDGEMENTS

This report was made possible by the cooperating seven flowering
plant nursery operators who made available their production and
accounting records on a confidential basis for analysis and averaging.
Assistance and encouragement were supplied by Extension Ornamental
Horticultural Agents Bruce Barmby, Gary Brinen, Terry DelValle and
DeArmand Hull. 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 TABLES . . .
LIST OF FIGURES . . .

INTRODUCTION ... ..
PROCEDURE . .. .
DEFINITIONS . . . .
DATA AND RESULTS . . .

Size of Business . .
Rates of Production . ..
Labor Efficiency . .
The Use of Space . .
Efficiency in the Use of Capital
Dollar Costs by Expense Category*
Percent of Total Costs by Expense


. .
. .
. .
. .
. .
. .
Category*t


Cost Per Square Foot of Total Bed and Bench Space* .
Cost Per Square Foot of Propagating and Finishing Space* .
Cost Per Dollar of Sales Adjusted for Inventory Change* .
Cost Per Dollar of Sales* . .. . ....
Income Summary . ... . .......

Total Gain .. . . .
Net Nursery Income . . . .
Return on Capital . . .. .

Balance Sheet . . . . ........


Current Assets .
Long Term Assets .
Total Assets .
Liabilities . .
Net Worth . .

Total Profitability Model

Margin Management .
Asset Management .
Leverage Management .

Range of Figures .
Seasonalty of Sales .

CONCLUDING COMMENTS . .


. . . . . .


* . . . . *


*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


Page
1
i
iii
Iv



r



























LIST OF TABLES


Table Page
1 Size of business, seven wholesale flowering plant nurseries
in Florida, 1986 . . . . 5

2 Rates of production, seven wholesale flowering plant
nurseries in Florida, 1986 . . . . 6

3 Labor efficiency, seven wholesale flowering plant nurseries
"in Florida, 1986 . . . . 7

4 The use of space, seven wholesale flowering plant nurseries
in Florida, 1986 . . . . 9

5 Efficiency in the use of capital, seven wholesale flowering
plant nurseries in Florida, 1986 . . . 11

6 Dollar costs by expense category, seven wholesale flowering
plant nurseries in Florida, 1986 . . . 13

7 Percent of total costs by expense category, seven wholesale
flowering plant nurseries in Florida, 1986 . .. 15

8 Costs per square foot of total bed and bench space, seven
wholesale flowering plant nurseries in Florida, 1986 . 17

9 Costs per square foot of propagating and finishing space,
seven wholesale flowering plant nurseries in Florida, 1986 19

10 Costs per dollar of sales adjusted for change in plant
inventory, seven wholesale flowering plant nurseries in
Florida, 1986 . . . . . 21

11 Cost per dollar of sales (no adjustment for change in plant
inventory), seven wholesale flowering plant nurseries in
Florida, 1986 . . . . . 23

12 Income summary, seven wholesale flowering plant nurseries in
Florida, 1986 . . . .. . . 25

13 Balance sheet, seven wholesale flowering plant nurseries in
Florida, 1986 ..... .. .... .. . . 27

14 Range of figures on factors associated with level of profit,
seven wholesale flowering plant nurseries in Florida, 1986 30














LIST OF FIGURES


Figure Page
1 Total profitability model, seven wholesale flowering plant
nurseries in Florida, 1986 ................. 29

2 Monthly sales compared to average monthly costs, seven
wholesale flowering plant nurseries in Florida, 1986 . 33











BUSINESS ANALYSIS OF FLOWERING PLANT NURSERIES IN FLORIDA, 1986


J. Robert Strain and Alan Hodges


INTRODUCTION


This publication contains information on sales, costs, returns and
production efficiency for flowering plant nurseries in Florida for
1986. Other publications in this series include reports on Central
Florida foliage plant nurseries, South Florida foliage plant nurseries,
Dade County Florida foliage plant nurseries, Florida woody ornamental
container plant nurseries and Florida woody ornamental field nurseries.
Purposes of the nursery business analysis series include:
1) Furnishing nursery operators with various physical and economic
measures that may be used in evaluating the efficiency of
individual nurseries;
2) Supplying cooperating nursery operators with data so that they
may make more informed management decisions;
3) Providing individuals considering entering the wholesale plant
production business with an estimate of the input requirement
and revenue potential;
4) and Providing Florida Extension personnel with data for
conducting educational programs with nursery operators.


PROCEDURE


The information and averages presented in this report are based on
data supplied by seven nursery operators in the form of confidential
production and accounting records. Their nurseries are located in the
Florida counties of Alachua, Dade, Duval, and Orange. They
participated in the program voluntarily and do not represent a statis-


J. ROBERT STRAIN is an extension economist and professor, and ALAN
HODGES is a research assistant, both in IFAS Food and Resource
Economics Department, University of Florida, Gainesville.











BUSINESS ANALYSIS OF FLOWERING PLANT NURSERIES IN FLORIDA, 1986


J. Robert Strain and Alan Hodges


INTRODUCTION


This publication contains information on sales, costs, returns and
production efficiency for flowering plant nurseries in Florida for
1986. Other publications in this series include reports on Central
Florida foliage plant nurseries, South Florida foliage plant nurseries,
Dade County Florida foliage plant nurseries, Florida woody ornamental
container plant nurseries and Florida woody ornamental field nurseries.
Purposes of the nursery business analysis series include:
1) Furnishing nursery operators with various physical and economic
measures that may be used in evaluating the efficiency of
individual nurseries;
2) Supplying cooperating nursery operators with data so that they
may make more informed management decisions;
3) Providing individuals considering entering the wholesale plant
production business with an estimate of the input requirement
and revenue potential;
4) and Providing Florida Extension personnel with data for
conducting educational programs with nursery operators.


PROCEDURE


The information and averages presented in this report are based on
data supplied by seven nursery operators in the form of confidential
production and accounting records. Their nurseries are located in the
Florida counties of Alachua, Dade, Duval, and Orange. They
participated in the program voluntarily and do not represent a statis-


J. ROBERT STRAIN is an extension economist and professor, and ALAN
HODGES is a research assistant, both in IFAS Food and Resource
Economics Department, University of Florida, Gainesville.










tically selected sample. In fact, the nursery operators participating
in the Florida Nursery Business Analysis Program are thought to
represent some of the more efficient flowering plant nurseries in
Florida, rather than being typical of flowering plant nurseries.
Data were collected for the 1986 tax year. In some cases, data
were received for a fiscal year that did not coincide with the 1986
calendar year. Data for fiscal years ending after July 1, 1985 and up
to June 30, 1987 were included with the 1986 calendar year data.
Not all nursery operators drew a regular salary from their
operation. In these instances, 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. Instead, an interest
charge for the total owned investment was calculated at the rate of 12
percent per year and included as a non-cash cost allowance.
The value of owned capital or investment in the nursery reflects
the depreciated book value of buildings, Improvements, machinery and
equipment. This is a total value; related debt is not deducted in
determining this value of capital owned. Growing plants also are
included as a part of the owned capital investment, but at a value
lower than the regular wholesale price. This is because, in a normal
growing operation, most of the plants in inventory are not of a salable
size. Some will barely be started, some ready to sell, and others
scattered in between. A common practice is to value all plants,
whether just started or almost finished at 50 percent of their
wholesale price if finished. However, some nursery operators use other
methods. For this report, the values supplied by the nursery operators
were the values used. Land included in owned capital investment was
valued at the original purchase price. While this may not represent
the investment of a nursery operator if he or she were to buy the land
in 1986, it does represent the investment actually involved in the
operation.
The data from individual nurseries are'averaged and presented in
tablular form. The tables present average values for all seven
nurseries.









DEFINITIONS


In general, the terms used in this report are thought to be self
explanatory. However, experience Indicates that some of the terms
used here are less familiar than others. They are defined as follows,
and again later where they are used:


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.

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

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

Capital managed: the sum 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
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 plant 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 or
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 interest 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.











DATA AND RESULTS


The data in the first 11 tables present various size and efficiency
measures. Data in Tables 12 through 14 relate to the profitability of
nurseries. In the first five tables, more than one measure of
efficiency is used. The first item in each table has traditionally
been presented as "The one best measure." It is followed by other
useful measures of performance. In the tables throughout the
manuscript arithmetic inconsistencies from rounding may be noted.


Size of Business(Table 1)


Size of business data in Table 1 is basic information. When com-
bined with cost data in Table 6, it provides nursery operators most of
the data required for developing the remaining tables in this report.
For size of business, the one best measure selected was "Value of
own plants sold" (Table 1 item A). It is the value of total plant
sales minus the the cost of plants purchased for immediate resale. In
other words, this is income from the sale of the plants grown in the
nursery. This averaged $558,537 for the seven nurseries. Adjusting
sales for change in value of plant inventory (Table 1 item B) increased
the figure $24,663 to $583,200.
Another indicator of size of a nursery is the space it occupies.
The average flowering plant nursery covered 3.10 acres (Table 1G), and
contained 96,119 square feet of bed and bench space (Table 1C).
A third indicator of the size of a nursery is the number of people
employed. The average flowering plant nursery provided work for the
full time equivalent of 34.93 workers. A full-time equivalent employee
is the equivalent of one person paid 2080 hours (40 hours a week for 52
weeks a year including paid vacation time, if any).
Capital owned is the current value (original cost less depreciation
taken) of capital assets, or the current investment In the nursery.
Capital owned (Table 1P) averaged $353,419 for the seven nurseries.
(Related debt such as notes and mortgages is not deducted in this
determination of the capital value owned.)
Capital managed is the sum of capital owned plus the value of











DATA AND RESULTS


The data in the first 11 tables present various size and efficiency
measures. Data in Tables 12 through 14 relate to the profitability of
nurseries. In the first five tables, more than one measure of
efficiency is used. The first item in each table has traditionally
been presented as "The one best measure." It is followed by other
useful measures of performance. In the tables throughout the
manuscript arithmetic inconsistencies from rounding may be noted.


Size of Business(Table 1)


Size of business data in Table 1 is basic information. When com-
bined with cost data in Table 6, it provides nursery operators most of
the data required for developing the remaining tables in this report.
For size of business, the one best measure selected was "Value of
own plants sold" (Table 1 item A). It is the value of total plant
sales minus the the cost of plants purchased for immediate resale. In
other words, this is income from the sale of the plants grown in the
nursery. This averaged $558,537 for the seven nurseries. Adjusting
sales for change in value of plant inventory (Table 1 item B) increased
the figure $24,663 to $583,200.
Another indicator of size of a nursery is the space it occupies.
The average flowering plant nursery covered 3.10 acres (Table 1G), and
contained 96,119 square feet of bed and bench space (Table 1C).
A third indicator of the size of a nursery is the number of people
employed. The average flowering plant nursery provided work for the
full time equivalent of 34.93 workers. A full-time equivalent employee
is the equivalent of one person paid 2080 hours (40 hours a week for 52
weeks a year including paid vacation time, if any).
Capital owned is the current value (original cost less depreciation
taken) of capital assets, or the current investment In the nursery.
Capital owned (Table 1P) averaged $353,419 for the seven nurseries.
(Related debt such as notes and mortgages is not deducted in this
determination of the capital value owned.)
Capital managed is the sum of capital owned plus the value of










additional capital items (such as rented land or leased equipment) that
Is used and under the control of the nursery manager. Capital managed
(Table IX) averaged $637,491 or 1.8 times the capital owned by the
nursery operators. This difference was primarily in the value
buildings and land.

Table 1.--Size of business, seven wholesale flowering plant nurseries
in Florida, 1986.

Average
Item Unit all 7 Your
nurseries nursery

The one best measure
A Value of own plants sold(a) $ 558,537
Other useful indicators of size
Value of own plants sold


B adjusted for change in .
plant inventory value


C Total bed & bench space .

D Propagating & finishing
bed & bench space. . .
E Stock plant bed &
bench space . . .

F Total nursery area . .
G Total nursery area . .

H Average fulltime
equivalent employees(b). . .

Capital owned(c) In:
I Growing plants . .....
J Buildings/fences/wells .....
K Machinery/equipment ..
L Land . . . .
M Supplies . . .
N Accounts receivable . .
0 Cash/checkbook balance . .
P Total owned capital . .


Capital managed(d) In:
Q Growing plants .
R Buildings/fences/wells
S Machinery/equipment
T Land . .. .
U Supplies . .
V Accounts receivable
W Cash/checkbook balance
X Total managed capital


sq ft


sq ft

sq ft

sq ft
acres


number


583,200


96,119


92,589

3,530

135,131
3.10


34.93


128,743
106,476
12,626
9,667
11,901
72,508
11,498
353,419


128,743
279,484
16,904
116,453
11,901
72,508
11 498
637,491


=-,-- X==i~=r;i='------~'~E=--=u-~==~=-~'tI-~r r--'I===~=XEPE=


. .








Rates of Production (Table 2)


"Value of own plants sold per square foot of total bed and bench
space" (Table 1 item A divided by item C) is the traditional rate of
production measure used among nurseries. The average value for the
seven nurseries was $5.82. Adjusted sales for change in inventory
value (Table 1 item B divided by item C) increased the value to $6.07.
Sales per square foot of propagating and finishing space (Table 1A
divided by 10) Is a more accurate indicator of growing efficiency.
Output from stock plant areas may reduce costs, but pay no bills unless
cuttings are sold. It is the plants grown on the propagating and
finishing space that pay the bills for the entire nursery operation.
This amounted to $6.03 per square foot for the seven nurseries. When
adjusted for change in plant inventory value, the value became $6.30
per square foot of propagating and finishing area. The value per acre
of land devoted to the nursery was $180,047. After adjusting for
change in inventory value, the figure was $187,997.


Table 2.--Rates of production, seven wholesale flowering plant
nurseries in Florida, 1986.

Average
Item Unit all 7 Your
nurseries nursery

The one best measure
Value of own plants sold per
sq ft of total bed & bench
space - --- (Table 1A/1C) $ 5.81
Other useful indicators
Value of own plants sold per
sq ft adjusted for inventory
change - - (Table 1B/C) $ 6.07

Value of own plants sold per
sq ft of propagating & fin-
ishing space - (Table 1A/1D) $ 6.03
--- adjusted for inventory
change - (Table 18/1D) $ 6.30

Value of own plants sold per
acre - - (Table 1A/1G) $ 180,047
--- adjusted for inventory
change - -- (Table 1B/IG) $ 187,997












Labor Efficiency (Table 3)


"Value of own plants sold per employee" (Table 1A divided by 1H)
was selected as the one best measure of labor efficiency. This
averaged $15,990 per employee for the seven nurseries. Adjusting for
change in plant inventory value (Table 1B divided by 1H) slightly
increased the average for all seven nurseries to $16,697.
Another Indicator of efficiency in the use of labor is the amount
of nursery area handled per employee. Total nursery area per person
averaged 3,869 square feet. This is less than a tenth of an acre per
worker.
Probably a more important Indicator of labor efficiency is the bed
and bench space cared for per employee. Total bed and bench space per
employee (Table 1C divided by 1H) averaged 2,752 square feet. This was
a little over six hundredths of an acre per person.
Labor is probably most intensely used with propagating and
finishing space. Propagating and finishing space per person (Table 1D
divided by 1H) averaged 2,651 square feet per employee. This was six
hundredths of an acre per person.

Table 3.--Labor efficiency, seven wholesale flowering plant nurseries
in Florida, 1986.

Average
Item Unit all 7 Your
nurseries nursery

The one best measure
Value of own plants sold per
employee - -- (Table 1A/1H) $ 15,990
Other useful Indicators
Value of own plants sold per
employee adjusted for change
in plant inventory (Table 1B/1H) $ 16,697

Total bed & bench space per
employee - -- (Table 1C/1H) sq ft 2,752

Propagating S finishing space
per employee - (Table 1D/1H) sq ft 2,651

Total nursery area per
employee- - (Table 1F/IH) sq ft 3,869
-~=-~=rr=t-'f-~= --l --I--- m
















The Use of Space (Table 4)


The one measure selected as best for measuring the intensity of
space use was "Annual turnover of plant inventory value" (Table 1A
divided by 11). This indicates the number of times that funds tied up
in plant inventory were represented by sales during the year. The
reliability of this number depends upon the care and accuracy with
which plant inventory records are kept. Some nursery operators in the
program keep careful inventories of plant numbers, while others tend to
approximate their figures. But the idea is deemed valid, and should be
especially useful to those who compare their figures with their own
data of the previous year. In this case, the nursery operator has
first hand knowledge of the nature and the dependability of the
comparison.
Annual turnover of plant inventory value in the seven nurseries
averaged 434 percent. This means that annual plant sales amounted to
4.34 times the average value of plants in inventory.
Vacant bed and bench space is a measure of efficiency of space use.
Generally, reducing the percent of space vacant on the average is
desirable. However, under the best of conditions, some vacancy is
inevitable between the time a plant is removed for sale and the time
another is put in its place to start growing. Flowering plant
nurseries have even more vacancy problems because of the seasonality of
demand for flowering plants. The average amount of vacant space during
the year divided by total bed and bench space (Table 1C) shows the
average percent of vacant space. This was a 18.65 percent vacancy.
Other useful indicators to study are percent of total nursery area
including buildings and roadways that is bed and bench space, and the
division of bed and bench space between propagating and finishing space
and stock plant area. Other things being equal, the higher the
percentage of total nursery area devoted to bed and bench space, and











the higher the percentage of bed and bench space used for propagating
and finishing rather than stock plants, the better. However, other
things are seldom equal, such as the cost of raising rather than buying
cuttings, and availability of quality material when needed.
The seven nurseries averaged 96,119 square feet of bed and bench
space. This was 71.13 percent of their total nursery area. In other
words, less than three-quarters of the total nursery area was actually
utilized for growing plants.
Propagating and finishing area averaged 92,589 square feet for the
seven flowering plant nurseries. This was 96.33 percent of the total
bed and bench space (Table 1D divided by 1C). A small part (almost
four percent) of the average flowering plant nursery was used for stock
plants.
The remainder of the bed and bench space was used for stock plants.
This amounted 3.67 percent of the total bed and bench space.


Table 4.--The use of space, seven wholesale flowering plant nurseries
in Florida, 1986.
---=--- ------
Average
Item Unit all 7 Your
nurseries nursery
------------------------------------------------------------
Intensity of space use
Annual turnover of plant in-
ventory value (Table 1A/11) % 434
Efficiency of space use
Vacant bed & bench space sq ft 17,930
-------- (divided by Table 1C) % 18.65
Other useful indicators
Total nursery area - (Table 1F) sq ft 135,131
Total bed & bench space (Table 1C) sq ft 96,119
- - - (Table 1C/1F) % 71.13

Propagating & finishing (Table 1D) sq ft 92,589
bed & bench space (Table 1D/1C) % 96.33

Stock plant bed & bench (Table 1E) sq ft 3,530
space - -- (Table 1E/IC) % % 3.67









Efficiency In Use of Capital(Table 5)


A number of possibilities exist for measuring efficiency in the use
of capital. The one selected as the best single indicator was "Annual
turnover of owned capital value." This is the percentage that results
from dividing the value of own plants sold by the value of capital
owned (Table 1A divided by IP). Annual turnover averaged 158 percent
for the seven nurseries. This means that sales for the year equaled
more than one and a half (1.58) times the capital invested in the
average flowering plant nursery.
Managed capital turnover is probably a more accurate indicator of
capital performance in flowering plant nurseries. Managed capital
turnover averaged 87.6 percent for the seven flowering plant nurseries.
Thus, there was enough additional capital being managed to reduce the
turnover rate by 45 percent (70.4 points).
Capital invested per employee (Table 1P divided by 1H) averaged
$10,118 for the seven nurseries. However, managed capital per person
is a more accurate indicator of the capital required per person in the
average flowering plant nursery. Managed capital per person averaged
$18,257.
Average capital investment per acre of nursery area (Table 1P
divided by 1G) was $113,927 for the seven nurseries. Again, capital
managed per acre is a more accurate indicator of actual capital
requirements per acre in a flowering plant nursery. Capital managed
per acre averaged $205,498.
Growing plants represented 20.20 percent of the capital managed by
the seven nurseries. The largest user of capital in flowering plant
nurseries was buildings and installations. They averaged 43.84 percent
of the total. Machinery and equipment took but 2.65 percent of the
capital. Land required 18.27 percent of the capital on average.
Accounts receivable tied up 11.37 percent of the managed capital.
Checkbook balance accounted for 1.80 percent.








Table 5.--Efficiency in use of capital, seven wholesale flowering plant
nurseries in Florida, 1986.

Average
Item Unit all 7 Your
nurseries nursery
---------------------------------------------------------------
The one best measure
Annual turnover(e) of owned
Capital value - (Table 1A/1P) % 158.0
Other useful indicators


Annual turnover(e) of managed
capital value - (Table 1A/1X)

Per employee:
Capital owned - (Table 1P/1H)
Capital managed - (Table 1X/1H)

Per acre:
Capital owned - (Table 1P/1G)
Capital managed - (Table 1X/1G)

Managed capital per person in:
Growing plants- -- (Table 1Q/1H)
Buildings/fences/wells- (Table 1R/1H)
Machinery/equipment (Table 1S/1H)
Land - - (Table 1T/1H)
Accounts receivable (Table 1V/1H)

Managed capital per acre in:
Growing plants- - (Table 1Q/1G)
Buildings/fences/wells- (Table 1R/1G)
Machinery/equipment (Table 1S/1G)
Land - - (Table 1T/1G)
Accounts receivable (Table 1V/1G)

Percent of capital managed in:
,r .l 1 n .n - /T- l /1i V


Buildings/fences/wells-
Machinery/equipment -
Land - - -
Supplies - -
Accounts receivable -
Cash/checkbook balance-
Total nursery- -


\ au I
(Table
(Table
(Table
(Table
(Table
(Table
(Table


87.6


10,118
18,251


113,927
205,498


3,686
8,001
484
3,334
341


41,501
90,093
5,449
37,539
3,837


20.20
43.84
2.65
18.27
1.87
11.37
1.80
100.00


IIW I/l
1R/1X)
1S/1X)
1T/1X)
1U/lX)
1V/1X)
1W/1X)
1X/IX)


(e) Annu
dividing the
1A/1P or 1X).


al turnover of capital value--the
value of own plants sold by the val


percent resulting from
ue of capital (Table


PPr==~IL--P===i==--~-~~F-=e-l-~=~=-~~-~-










Dollar Costs by Expense Category (Table 6)


Dollar costs by expense category were obtained from the annual
profit and loss statement or tax records of the participating
nurseries. The cash cost categories were grouped into wages and
salaries, production supplies, other production costs, and
administrative and overhead expense. Dollar costs should be useful for
comparing the relative magnitude of the various cost items, and as a
guide to persons interested in Florida flowering plant nurseries as an
investment, either as buyers, sellers or lenders.
Salaries and Wages
The salary and wage group includes operator salary or time value.
Average for the seven flowering plant nurseries was $188,890.
Production Supplies
Production supplies include the group starting with "plants and
seeds" through "other production supplies." They averaged $213,177 for
the seven nurseries.
Other Production Costs
Other production costs include "facility repairs" and "equipment
operating costs." They averaged $29,772.
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. -They include the group starting with "travel
and entertainment" through "other cash expenses." They averaged
$74,333 for the seven nurseries.
Total Cash Costs
Total cash costs averaged $506,172. These are the costs that
must be met daily as due in order to continue in business.
Non-Cash Costs
Non-cash costs include depreciation allowances, decreases in the
supply inventory (using supplies purchased during a previous time
period), and an interest charge for the use of the capital invested in
the nursery. They averaged $71,349.






13


Total All Costs
The sum of all costs for the seven flowering plant nurseries, both
cash costs and non-cash costs, averaged $577,521.


Table 6.--Dollar costs by expense category, seven wholesale flowering
plant nurseries in Florida, 1986.

Average
Item all 7 Your
nurseries nursery
---------------------------------------------------


Cash Costs
Operator's salary . . .
Other wages and salaries . . .
Salaries & wages . . .


Plants & seeds to grow on .
Pots/growing containers .
Fuel for production heat .
Peat/soil/shavings, etc. .
Fertilizer/lime . .
Pesticides/other chemicals .
Packing boxes/supplies .
Other production supplies .
Production supplies .

Facility repairs/maintenance
Equipment operating costs .
Other production costs .

Travel/trade shows . .
Insurance . .
Telephone . .. .
Electricity. . .
Taxes/licenses/bonds .
Advertising . .
Rent: land and/or buildings .
Other cash expenses . .
Administrative & overhead .
TOTAL CASH COSTS .


Non-Cash Costs
Depreciation: mach/equipment . .
Depreciation: bldgs/fences/wells ..
Inventory decrease in supplies. . .
Interest on capital, 12% . .
NON-CASH COSTS . . ..

TOTAL ALL COSTS . . .


- Dollars -

34,288
154,602
188,890


108,173
27,272
12,587
15,594
6,853
8,804
18,372
15,323
213,177

19,743
10,029
29,772

1,826
9,581
4,359
9,192
7,812
3,270
3,825
34,468
74,333
506,172


13,015
15,923
0
42,410
71,349

S577,521


----X-=I-=--55=P-=---=--"----S=E==--=eE


--


--E--------==












Percent of Total Costs by Expense Category (Table 7)


While expenditures in the form of dollars show the magnitude of
expenses for various cost categories, they are not very helpful for
comparing cost relationships between different sizes of nurseries. But
costs as a percent of total costs are useful for this purpose. These
are obtained by dividing each of the dollar expense items in Table 6 by
the "Total all costs" figure at the bottom of the table.
Salaries and Wages
Salaries and wages includes operator's salary. They averaged 32.71
percent of all costs. This is about a third of all costs and
allowances for the seven flowering plant nurseries.
Production Supplies
Production supplies include "plants" through "other production
supplies." They were the largest group of expenses. They averaged
36.91 percent of all costs for the seven nurseries, and exceeded the
expenditures for salaries and labor.
Other Production Costs
Other production costs are "facility repairs" and "equipment
operating costs." They are the production costs over and above labor
and supplies. They averaged 5.16 percent for the seven nurseries.
Administrative and Overhead
These costs include the group from "travel" through "other cash
expense". They averaged 12.87 percent for the seven nurseries.
Total Cash Costs
Total cash costs are those costs that must be paid as the business
year progresses. They represented 87.65 percent of all costs and
allowances for the seven nurseries.
Non-Cash Costs
Non-cash costs are "depreciation" through "interest on capital."
They are the additional costs that need to be covered eventually,
though not necessarily with cash during this accounting period. They
averaged 12.35 percent of total costs for the'seven nurseries.













Table 7.--Percent of total costs by expense category, seven wholesale
flowering plant nurseries in Florida, 1986.

Average
Item all 7 Your
nurseries nursery


Cash Costs
Operator's salary . .
Other wages/salaries .
Salaries & wages ..

Plants & seeds to grow on .
Pots/growing containers .
Fuel for production heat
Peat/soil/shavings, etc .
Fertilizer/lime .. ....
Pesticides/other chemicals
Packing boxes/supplies .
Other production supplies .
Production supplies .


Facility repairs/maintenance
Equipment operating costs .
Other production costs .

Travel/trade shows
Insurance . .
Telephone . .
Electricity . .
Taxes/licenses/bonds .
Advertising . .
Rent: land and/or buildings .
Other cash expenses . .
Administrative & overhead .
TOTAL CASH COSTS .


Non-Cash Costs
Depreciation: mach/equipment . .
Depreciation: bldgs/fences/wells . .
Inventory decrease in supplies . .
Interest on capital, 12% . .
NON-CASH COSTS . . .


TOTAL ALL COSTS . .


- Percent -


5.94
26.77
32.71

18.73
4.72
2.21
2.70
1.19
1.52
3.18
2.65
36.91

3.42
1.74
5.16

0.32
1.66
0.75
1.59
1.35
0.57
0.66
5.97
12.87
87.65


2.25
2.76
0.00
7.34
12.35

100.00


~-.--Z=X--~--C--=L=------rr-- ---tll~~----=r---~e~=-~-~lcrrrrr---n=


. .0 .












Costs Per Square Foot of Total Bed and Bench Space (Table 8)


While expenses as a percent of total costs facilitate comparing
operating statements, they do not allow easy comparison of relative
growing costs between nurseries. But costs per square foot do. The
traditional basis for comparison is costs per square foot of total bed
and bench space. These were obtained by dividing each of the dollar
cost figures in Table 6 by the area in production figure from Table 1C,
"Total bed and bench space."
Salary and Wages
The salaries and wages group includes an operator's salary. Costs
per square foot amounted to 196.5 cents ($1.96) in the seven flowering
plant nurseries.
Production Supplies
Production supplies include "plants and seeds" through "other
production supplies." They averaged 221.8 cents ($2.22) per square
foot.
Other Production Costs
Other production costs include "facility repairs" and "equipment
operation". They averaged 31.0 cents per square foot of total bed and
bench space.
Administrative and Overhead
These costs include the group from "travel" through "other cash
expenses." They averaged 77.3 cents per square foot.
Total Cash Costs
Total cash costs in the seven flowering plant nurseries averaged
526.6 cents ($5.27) per square foot of total bed and bench space.
Non-Cash Costs
Non-cash costs include "depreciation" through "interest on
capital." These costs averaged 74.2 cents for the seven nurseries.
Total All Costs
All cash and non-cash costs and allowances for the seven flowering
plant nurseries averaged $6.01 per square foot of total bed and bench
space.












Table 8.--Costs per square foot of total bed & bench space, seven
wholesale flowering plant nurseries in Florida, 1986.

Average
Item all 7 Your
nurseries nursery

- Cents - -


Cash Costs
Operator's salary .... ... .
Other wages/salares . .
Salaries & wages . . .....


Plants & seeds to grow on .
Pots/growing containers .
Fuel for production heat .
Peat/soil/shavings, etc. .
Fertilizer/lime .......
Pesticides/other chemicals
Packing boxes/supplies .
Other production supplies .
Production supplies .

Facility repairs/maintenance
Equipment operating costs .
Other production costs .

Travel/trade shows . .
Insurance . . .
Telephone . . .
Electricity . .
Taxes/licenses/bonds .
Advertising . .
Rent: land and/or buildings .
Other cash expenses . .
Administrative & overhead .
TOTAL CASH COSTS ..


Non-Cash Costs
Depreciation: mach & equip. . . .
Depreciation: bldgs, fences, wells . .
Inventory decrease in supplies. . .
Interest on capital, 12% . . .
NON-CASH COSTS . . . .

TOTAL ALL COSTS . . . .


35.7
160.8
196.5

112.5
28.4
13.3
16.2
7.1
9.2
19.1
15.9
221.8

20.6
10.4
31.0

1.9
10.0
4.5
9.6
8.1
3.4
4.0
35.9
77.3
526.6


13.5
16.6
0.0
44.1
74.2

600.8


-= = = P P P E~eP~-I-P== .---- -











Costs Per Square Foot of Propagating and Finishing Space (Table 9)


Costs per square foot of total bed and bench space is the
traditional basis for comparisons between nurseries. However, costs
per square foot of propagating and finishing space are more
appropriate for estimating individual plant growing costs, or for
comparing growing cost efficiency between nurseries. These costs were
obtained by dividing dollar cost in Table 6 by the plant production
area from Table 1D, "Propagating and finishing bed and bench space."
Salary and Wages
Salaries and wages includes the operator's salary. Labor cost per
square foot amounted to 204.0 cents ($2.04) in the seven flowering
plant nurseries.
Production Supplies
Production supplies are "plants and seeds" through "other
production supplies." They averaged 230.2 cents ($2.30) per square
foot of propagating and finishing space.
Other Production Costs
Other production costs are "facility repairs" and "equipment
operating costs." Other production costs averaged 32.2 cents per
square foot of propagating and finishing space in the seven flowering
plant nurseries.
Administrative and Overhead
These costs are "travel" through "other cash expenses." They
averaged 80.3 cents per square foot of propagating and finishing space.
Total Cash Costs
Total cash costs in the seven nurseries averaged 546.7 cents
($5.47) per square foot of propagating and finishing space.
Non-Cash Costs
Non-cash costs are "depreciation" through "interest on capital."
Non-cash costs averaged 77.1 cents per square foot.
Total All Costs
Total costs include both the cash and non-cash costs. Total costs
per square foot of propagating and finishing space for the seven
flowering plant nurseries averaged $6.24.





19






Table 9.--Costs per square foot of propagating and finishing space,
seven wholesale flowering plant nurseries in Florida, 1986.

Average
Item all 7 Your
nurseries nursery
-------------------------------------------------------------


Cash Costs
.Operator's salary . .
Other wages/salaries .
Salaries & wages .

Plants & seeds to grow on
Pots/growing containers .
Fuel for production heat
Peat/soil/shavings, etc .
Fertilizer/lime . .
Pesticides/other chemicals
Packing boxes/supplies .
Other production supplies .
Production supplies .


Facility repairs/maintenance
Equipment operating costs .
Other production costs .

Travel/trade shows . .
Insurance . . .
Telephone . . .
Electricity . . .
Taxes/licenses/bonds .
Advertising . . .
Rent: land and/or buildings .
Other cash expenses . .
Administrative & overhead .
TOTAL CASH COSTS .


Non-Cash Costs
Depreciation: mach/equipment . .
Depreciation: .bldgs/fences/wells . ..
Inventory decrease in supplies . .
Interest on capital, 12% . .
NON-CASH COSTS . . ..

TOTAL ALL COSTS . . ..


- - Cents - -


37.0
167.0
204.0

116.8
29.4
13.6
16.8
7.4
9.5
19.8
16.6
230.2

21.3
10.8
32.2

2.0
10.4
4.7
9.9
8.4
3.5
4.1
37.2
80.3
546.7


14.1
17.2
0.0
S45.8
77.1

623.8


-rrX-=~CI=,---~~~C-------t,,-'r'-X-~==l=









Costs Per Dollar of Sales Adjusted for Inventory Change (Table 10)


Costs per square foot of growing area are important for comparing
relative costs between nurseries, and for estimating individual plant
growing costs. However, they do not indicate the profit potential of a
nursery operation as well as do costs per dollar of sales. Adjusting
sales for changes in inventory value shows how the business is doing in
total, not just cash-wise. These figures were developed by dividing
the dollar costs shown in Table 6 by the figure from Table 1B, "Value
of own plants sold adjusted for change In plant inventory value."
Salaries and Wages
Salaries and Wages includes the operator's salary. They averaged
32.4 cents per dollar of sales after adjusting for changes in
inventory.
Production Supplies
Production supplies are "plants and seeds" through "other
production supplies." They averaged 36.6 cents per dollar of sales.
Other Production Supplies
Other production costs are "facility repairs" and "equipment
operation costs." They averaged 5.1 cents per dollar of adjusted
sales.
Administrative and Overhead
These costs are "travel" through "other cash expense." They
amounted to 12.8 cents per dollar of adjusted sales.
Total Cash Costs
Total cash costs per dollar of adjusted sales are costs that need
to be met on a current basis. They averaged 86.8 cents per dollar of
adjusted sales.
Non-Cash Costs
Non-cash costs are "depreciation" through "interest on capital."
They averaged 12.2 cents.
Total All Costs
Total costs include both cash costs and non-cash costs. Total
costs per dollar of adjusted sales averaged -99.0 cents.














Table 10.--Costs per dollar of sales adjusted for change in plant
inventory, seven wholesale flowering plant nurseries in
Florida, 1986.

Average
Item all 7 Your
nurseries nursery
------------------------------- M-------------------------------


Cash Costs
Operator's salary . .
Other wages/salaries .
Salaries & wages . .

Plants & seeds to grow on .
Pots/growing containers .
Fuel for production heat .
Peat/soil/shavings, etc. .
Fertilizer/lime .
Pesticides/other chemicals
Packing boxes/supplies .
Other production supplies .
Production supplies .

Facility repairs/maintenance
Equipment operating costs .
Other production costs .

Travel/trade shows . .
Insurance . . .
Telephone . . .
Electricity . .
Taxes/licenses/bonds ..
Advertising . . .
Rent: land and/or buildings .
Other cash expenses . .
Administrative & overhead .
TOTAL CASH COSTS .


Non-Cash Costs
Depreciation: mach/equipment . .
Depreciation: bldgs/fences/wells . ..
Inventory decrease in supplies. . .
Interest on capital, 12%0 . .
NON-CASH COSTS . . ..

TOTAL ALL COSTS ... . .


- - Cents - -


5.9
26.5
32.4

18.6
4.7
2.2
2.7
1.2
1.5
3.2
2.6
36.6

3.4
1.7
5.1

0.3
1.6
0.8
1.6
1.3
0.6
0.7
5.9
12.8
86.8


2.2
2.7
0.0
7.3
12.2

99.0


==-


P--~,I==--@rrrl-=------r-rxr------r-~irl














Costs Per Dollar of Sales (Table 11)


While total business position is indicated by costs per dollar of
sales adjusted for changes in inventory value, bill paying ability
depends upon costs relative to cash received. These figures were
developed by dividing the dollar costs shown in Table 6 by the figure
from Table 1A, "Value of own plants sold."
Salaries and Wages
Salaries and wages includes the operator's salary. Labor costs
amounted to 33.8 cents per dollar of cash received.
Production Supplies
Production supplies are "plants and seeds" through "other
production supplies." The costs of production supplies averaged 38.2


cents per dollar


of cash sales.


Other Production Costs
Other production costs are "facility repairs"
operation." These costs averaged 5.3 cents per
received.
Administrative and Overhead
These costs are "travel" through "other
Administrative and overhead costs averaged 13.3 cents
sales.
Total Cash Costs
Total cash costs averaged 90.6 cents per dollar


and "equipment
dollar of cash



cash expense."
per dollar of


of cash received


for all seven nurseries. This means that they were able to meet
current bills with close to ten cents per dollar of sales to spare.
Non-Cash Costs
These costs are "depreciation" through "interest on capital." Non-
cash costs averaged 12.8 cents per dollar of sales.
Total All Costs
Total all costs include both cash and non-cash costs. They
averaged 103.4 cents ($1.03) per dollar of cash sales. Hence, the
average flowering plant nursery did not take in enough cash to cover
all the non-cash costs for the year.






23






Table 11.--Costs per dollar of sales (no adjustment for change in plant
inventory), seven wholesale flowering plant nurseries in
Florida, 1986.

Average
Item all 7 Your
nurseries nursery
----------------------------------------------------


Cash Costs
Operator's salary . .
Other wages/salaries .
Salaries & wages . .

Plants & seeds to grow on .
Pots/growing containers .
Fuel for production heat .
Peat/soil/shavings, etc. .
Fertilizer/lime . .
Pesticides/other chemicals
Packing boxes/supplies .
Other production supplies .
Production supplies ..

Facility repairs/maintenance
Equipment operating costs .
Other production costs .

Travel/trade shows . .
Insurance . . .
Telephone . . .
Electricity . . .
Taxes/licenses/bonds .
Advertising .......
Rent: land and/or buildings .
Other cash expenses . .
Administrative & overhead .
TOTAL CASH COSTS .


Cents - -


* .


Non-Cash Costs .......
Depreciation: mach/equipment . .
Depreciation: bldgs/fences/wells . .
Inventory decrease in supplies. . .
Interest on capital, 12% .. .
NON-CASH COSTS . .. .

TOTAL ALL COSTS . . .


6.1
27.7
33.8

19.4
4.9
2.3
2.8
1.2
1.6
3.3
2.7
38.2

3.5
1.8
5.3

0.3
1.7
0.8
1.7
1.4
0.6
0.7
6.2
13.3
90.6


2.3
2.8
0.0
... 7.6
12.8

103.4


---,---XIX~i~~=r,---,,-~p=r-------=--~=r


,---------












Income Summary (Table 12)


This section concentrates on developing net nursery income and
allocating It between the time and effort of the owner-operator and a
return on the money invested in the operation. After all is said and
done, it is for a payment on his 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.
Total Gain
Total gain refers to the total effect of the year's operation. It
is the sum of plant sales, changes in plant and supply inventory
values, and miscellaneous income. Miscellaneous income refers to
income received from sources other than plant sales. Included could be
rent income, interest income, delivery income, boxing charges, and
income from the sale of fertilizer and supplies. Total gain for the
seven flowering plant nurseries averaged $587,442.
Net Nursery Income
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. To obtain it, all cash costs from Table 6 except the
operator's salary, and all non-cash allowances shown there except
interest on capital, are subtracted from total gain. The result is net
nursery income, or income for all the time and capital investment
(including borrowed funds) supplied by the owner-operator. For the
seven nurseries, net nursery income averaged $86,618.
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 money invested in
the nursery. Dividing it by the value of capital invested gives the
rate of return earned by the investment. When the owner and operator
are the same person, dividing net nursery income between the operator
and return to capital may not seem important. But when the owners are
outside investors, then accurate division is important. In either case












rate of return is a common indicator for evaluating an investment or


for selecting between alternative investment alternatives.


Return to


capital for the seven flowering plant nurseries amounted to $52,331, or
a return of 14.81 percent.


Table 12.--Income summary, seven wholesale flowering plant nurseries in
Florida, 1986.

Average
Item Unit all 7 Your
nurseries nursery
----------------------------------------------------


Value of own plants sold -
Plant inventory change -
Supply inventory change- -
Miscellaneous cash income- -
Total gain(f) - -


Deduct
Deduct
Total


cash costs less op salary -
non-cash costs less interest
deductions- - - -


Net nursery income(g)- - - -
Deduct op salary or time value - -

Return to capital(h) - - -
Rate of return to capital(i) - -


558,537
24,663
914
S3,328
587,442

( 471,885)
( 28,939)
( 500,824)

86,618
( 34,288)

52,337
14.81


( --- )
m=---r1

C )-==r=


---------=e=-=------==-========---------


(f) Total gain--the sum of plant sa
inventories, and miscellaneous income.
of the year's operation, be it in the
inventory value.


les, change in plant and supply
It represents the total effect
form of cash or change in


(g) Net nursery income--the net effect of the year's operation.
obtain it, subtract all cash costs (except operator's salary), and
non-cash allowances (except interest on capital) from total gain.
result is the return for the time and managerial skills of
operator, and for the use of the capital invested in the operation.


To
all
The
the


(h) Return to capital--the portion of net Income that is left after
subtracting the salary or time value of the operator. It is what the
owned capital earned.

(i) Rate of return to capital--return to capital divided by the
value of owned capital. It is the rate of return earned on the capital
invested.


""
""'
""
""
""'












Income Summary (Table 12)


This section concentrates on developing net nursery income and
allocating It between the time and effort of the owner-operator and a
return on the money invested in the operation. After all is said and
done, it is for a payment on his 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.
Total Gain
Total gain refers to the total effect of the year's operation. It
is the sum of plant sales, changes in plant and supply inventory
values, and miscellaneous income. Miscellaneous income refers to
income received from sources other than plant sales. Included could be
rent income, interest income, delivery income, boxing charges, and
income from the sale of fertilizer and supplies. Total gain for the
seven flowering plant nurseries averaged $587,442.
Net Nursery Income
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. To obtain it, all cash costs from Table 6 except the
operator's salary, and all non-cash allowances shown there except
interest on capital, are subtracted from total gain. The result is net
nursery income, or income for all the time and capital investment
(including borrowed funds) supplied by the owner-operator. For the
seven nurseries, net nursery income averaged $86,618.
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 money invested in
the nursery. Dividing it by the value of capital invested gives the
rate of return earned by the investment. When the owner and operator
are the same person, dividing net nursery income between the operator
and return to capital may not seem important. But when the owners are
outside investors, then accurate division is important. In either case












Income Summary (Table 12)


This section concentrates on developing net nursery income and
allocating It between the time and effort of the owner-operator and a
return on the money invested in the operation. After all is said and
done, it is for a payment on his 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.
Total Gain
Total gain refers to the total effect of the year's operation. It
is the sum of plant sales, changes in plant and supply inventory
values, and miscellaneous income. Miscellaneous income refers to
income received from sources other than plant sales. Included could be
rent income, interest income, delivery income, boxing charges, and
income from the sale of fertilizer and supplies. Total gain for the
seven flowering plant nurseries averaged $587,442.
Net Nursery Income
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. To obtain it, all cash costs from Table 6 except the
operator's salary, and all non-cash allowances shown there except
interest on capital, are subtracted from total gain. The result is net
nursery income, or income for all the time and capital investment
(including borrowed funds) supplied by the owner-operator. For the
seven nurseries, net nursery income averaged $86,618.
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 money invested in
the nursery. Dividing it by the value of capital invested gives the
rate of return earned by the investment. When the owner and operator
are the same person, dividing net nursery income between the operator
and return to capital may not seem important. But when the owners are
outside investors, then accurate division is important. In either case












Income Summary (Table 12)


This section concentrates on developing net nursery income and
allocating It between the time and effort of the owner-operator and a
return on the money invested in the operation. After all is said and
done, it is for a payment on his 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.
Total Gain
Total gain refers to the total effect of the year's operation. It
is the sum of plant sales, changes in plant and supply inventory
values, and miscellaneous income. Miscellaneous income refers to
income received from sources other than plant sales. Included could be
rent income, interest income, delivery income, boxing charges, and
income from the sale of fertilizer and supplies. Total gain for the
seven flowering plant nurseries averaged $587,442.
Net Nursery Income
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. To obtain it, all cash costs from Table 6 except the
operator's salary, and all non-cash allowances shown there except
interest on capital, are subtracted from total gain. The result is net
nursery income, or income for all the time and capital investment
(including borrowed funds) supplied by the owner-operator. For the
seven nurseries, net nursery income averaged $86,618.
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 money invested in
the nursery. Dividing it by the value of capital invested gives the
rate of return earned by the investment. When the owner and operator
are the same person, dividing net nursery income between the operator
and return to capital may not seem important. But when the owners are
outside investors, then accurate division is important. In either case












Balance Sheet (Table 13)


The previous section provides information on how the flowering
plant nurseries have done over time (over the last year). This section
(balance sheet) indicates how the nurseries stand at one point in time.
These balance sheet figures represent the mid-year financial situation
of the flowering plant nurseries. They were derived as an average of
year-beginning and year-end figures.
Current Assets
Current assets consist of cash, accounts receivable, and inventory
values. They are cash, or items deemed convertible to cash within a
year's time. Cash on'hand includes funds in checking accounts, savings
accounts, and money market funds. Average cash/checkbook balance was
$11,498. Accounts receivable are the uncollected funds due. Most of
this is in the form of payments due for plants sold. Generally, this
figure should be minimized. Uncollected funds pay no bills and earn no
interest. The seven flowering plant nurseries averaged $72,508 in
accounts receivable. Inventory values are the investments in growing
plants and supplies presented previously In Table 1. They averaged
$129,743 for growing plants and $11,901 for supplies. The sum of all
the above make up Total current assets. They averaged $224,650.
Long Term Assets
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
$287,243. Subtracting accumulated depreciation of $158,474 leaves a
current value of $128,769 (44.8 percent of original cost).
Total Assets
Total assets are the sum of current assets and long term assets.
Total assets of the seven flowering plant nurseries averaged $353,419.












Balance Sheet (Table 13)


The previous section provides information on how the flowering
plant nurseries have done over time (over the last year). This section
(balance sheet) indicates how the nurseries stand at one point in time.
These balance sheet figures represent the mid-year financial situation
of the flowering plant nurseries. They were derived as an average of
year-beginning and year-end figures.
Current Assets
Current assets consist of cash, accounts receivable, and inventory
values. They are cash, or items deemed convertible to cash within a
year's time. Cash on'hand includes funds in checking accounts, savings
accounts, and money market funds. Average cash/checkbook balance was
$11,498. Accounts receivable are the uncollected funds due. Most of
this is in the form of payments due for plants sold. Generally, this
figure should be minimized. Uncollected funds pay no bills and earn no
interest. The seven flowering plant nurseries averaged $72,508 in
accounts receivable. Inventory values are the investments in growing
plants and supplies presented previously In Table 1. They averaged
$129,743 for growing plants and $11,901 for supplies. The sum of all
the above make up Total current assets. They averaged $224,650.
Long Term Assets
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
$287,243. Subtracting accumulated depreciation of $158,474 leaves a
current value of $128,769 (44.8 percent of original cost).
Total Assets
Total assets are the sum of current assets and long term assets.
Total assets of the seven flowering plant nurseries averaged $353,419.












Balance Sheet (Table 13)


The previous section provides information on how the flowering
plant nurseries have done over time (over the last year). This section
(balance sheet) indicates how the nurseries stand at one point in time.
These balance sheet figures represent the mid-year financial situation
of the flowering plant nurseries. They were derived as an average of
year-beginning and year-end figures.
Current Assets
Current assets consist of cash, accounts receivable, and inventory
values. They are cash, or items deemed convertible to cash within a
year's time. Cash on'hand includes funds in checking accounts, savings
accounts, and money market funds. Average cash/checkbook balance was
$11,498. Accounts receivable are the uncollected funds due. Most of
this is in the form of payments due for plants sold. Generally, this
figure should be minimized. Uncollected funds pay no bills and earn no
interest. The seven flowering plant nurseries averaged $72,508 in
accounts receivable. Inventory values are the investments in growing
plants and supplies presented previously In Table 1. They averaged
$129,743 for growing plants and $11,901 for supplies. The sum of all
the above make up Total current assets. They averaged $224,650.
Long Term Assets
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
$287,243. Subtracting accumulated depreciation of $158,474 leaves a
current value of $128,769 (44.8 percent of original cost).
Total Assets
Total assets are the sum of current assets and long term assets.
Total assets of the seven flowering plant nurseries averaged $353,419.












Balance Sheet (Table 13)


The previous section provides information on how the flowering
plant nurseries have done over time (over the last year). This section
(balance sheet) indicates how the nurseries stand at one point in time.
These balance sheet figures represent the mid-year financial situation
of the flowering plant nurseries. They were derived as an average of
year-beginning and year-end figures.
Current Assets
Current assets consist of cash, accounts receivable, and inventory
values. They are cash, or items deemed convertible to cash within a
year's time. Cash on'hand includes funds in checking accounts, savings
accounts, and money market funds. Average cash/checkbook balance was
$11,498. Accounts receivable are the uncollected funds due. Most of
this is in the form of payments due for plants sold. Generally, this
figure should be minimized. Uncollected funds pay no bills and earn no
interest. The seven flowering plant nurseries averaged $72,508 in
accounts receivable. Inventory values are the investments in growing
plants and supplies presented previously In Table 1. They averaged
$129,743 for growing plants and $11,901 for supplies. The sum of all
the above make up Total current assets. They averaged $224,650.
Long Term Assets
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
$287,243. Subtracting accumulated depreciation of $158,474 leaves a
current value of $128,769 (44.8 percent of original cost).
Total Assets
Total assets are the sum of current assets and long term assets.
Total assets of the seven flowering plant nurseries averaged $353,419.













Liabilities
Liabilities may be "current" (payable during the current year) or
"long term" (payable at some time after the current year).
Current liabilities averaged $20,816. Longterm liabilities may be
notes or mortgages. They averaged $96,533. Total Liabilities
represent that part of the nursery that belongs to someone else. They
averaged $117,349, or 33 percent of the assets.


Table 13.--Balance Sheet, seven wholesale flowering plant nurseries in ,
Florida, 1986

Average
Item all 7 Your
nurseries nursery

-- Dollars -
Assets


Current Assets
Cash on hand . . . .
Accounts receivable. . . .
Inventories: Plants . . .
Supplies . . .
Total Current Assets. . . .

Long Term Assets


Machinery & equipment. . .
Buildings & fixtures .. .
Land . . . ..
Sub-total (original cost)...
Less accumulated depreciation. .
Total Long Term Assets. . .

Total Assets . . .


11,498
72,508
129,743
11,901
224,650


76,712
200,864
9,667
287,243
( 158,474)
128,769

353,419


m


Liabilities and Net worth
Liabilities ........
Current liabilities. . . 20,816 .
Long-term liabilities ........ 96,533
Total liabilities . . . 117,349 .

Net Worth .. . . . 236,071 .... ....

Total Liabillties& Net Worth . 353,419 ....... .
= = = = === = = == == ==


. . .













Net worth
Net worth is the difference between "total assets" and "total
liabilities". This is what the owner owns. The average net worth of
all seven nurseries was $236,071 (67 percent of the assets).



Total Profitability Model (Figure 1)

The Total Profitability Model (illustrated in Figure 1) combines
operating statement and balance sheet figures in three sections: margin
management, asset management and leverage management. Together, they
indicate the firm's return on net worth.
Margin Management
Figures for this section come from Table 12. From nursery total
gain ($587,442) are subtracted total deductions ($500,824) plus
operator's salary ($34,288) to give return to capital ($52,331). This
divided by total gain ($587,442) yields an average net profit margin of
8.91 percent.
Asset Management
Figures for this section come from the asset portion of Table 13.
Current assets ($224,650) plus long term assets ($128,769) make total
assets of $353,419. Total gain ($587,442) divided by total assets
($353,419) gives an asset turnover figure of 1.6622. Asset turnover
times net profit margin (8.91 percent) results in an average return to
capital of 14.81 percent.
Leverage Management
Figures for this section come from the liabilities and net worth
portion of Table 13. Current. liabilities ($20,816) plus long term
liabilities ($96,533). gives average total liabilities of $117,349.
This subtracted from total assets ($353,419) yields average net worth
of $236,071. Total liabilities and net worth divided by net worth
gives a leverage factor of 1.4971. Leverage times return to capital
(14.81 percent) gives a return on net worth of 22.17 percent.













Net worth
Net worth is the difference between "total assets" and "total
liabilities". This is what the owner owns. The average net worth of
all seven nurseries was $236,071 (67 percent of the assets).



Total Profitability Model (Figure 1)

The Total Profitability Model (illustrated in Figure 1) combines
operating statement and balance sheet figures in three sections: margin
management, asset management and leverage management. Together, they
indicate the firm's return on net worth.
Margin Management
Figures for this section come from Table 12. From nursery total
gain ($587,442) are subtracted total deductions ($500,824) plus
operator's salary ($34,288) to give return to capital ($52,331). This
divided by total gain ($587,442) yields an average net profit margin of
8.91 percent.
Asset Management
Figures for this section come from the asset portion of Table 13.
Current assets ($224,650) plus long term assets ($128,769) make total
assets of $353,419. Total gain ($587,442) divided by total assets
($353,419) gives an asset turnover figure of 1.6622. Asset turnover
times net profit margin (8.91 percent) results in an average return to
capital of 14.81 percent.
Leverage Management
Figures for this section come from the liabilities and net worth
portion of Table 13. Current. liabilities ($20,816) plus long term
liabilities ($96,533). gives average total liabilities of $117,349.
This subtracted from total assets ($353,419) yields average net worth
of $236,071. Total liabilities and net worth divided by net worth
gives a leverage factor of 1.4971. Leverage times return to capital
(14.81 percent) gives a return on net worth of 22.17 percent.













Net worth
Net worth is the difference between "total assets" and "total
liabilities". This is what the owner owns. The average net worth of
all seven nurseries was $236,071 (67 percent of the assets).



Total Profitability Model (Figure 1)

The Total Profitability Model (illustrated in Figure 1) combines
operating statement and balance sheet figures in three sections: margin
management, asset management and leverage management. Together, they
indicate the firm's return on net worth.
Margin Management
Figures for this section come from Table 12. From nursery total
gain ($587,442) are subtracted total deductions ($500,824) plus
operator's salary ($34,288) to give return to capital ($52,331). This
divided by total gain ($587,442) yields an average net profit margin of
8.91 percent.
Asset Management
Figures for this section come from the asset portion of Table 13.
Current assets ($224,650) plus long term assets ($128,769) make total
assets of $353,419. Total gain ($587,442) divided by total assets
($353,419) gives an asset turnover figure of 1.6622. Asset turnover
times net profit margin (8.91 percent) results in an average return to
capital of 14.81 percent.
Leverage Management
Figures for this section come from the liabilities and net worth
portion of Table 13. Current. liabilities ($20,816) plus long term
liabilities ($96,533). gives average total liabilities of $117,349.
This subtracted from total assets ($353,419) yields average net worth
of $236,071. Total liabilities and net worth divided by net worth
gives a leverage factor of 1.4971. Leverage times return to capital
(14.81 percent) gives a return on net worth of 22.17 percent.













Net worth
Net worth is the difference between "total assets" and "total
liabilities". This is what the owner owns. The average net worth of
all seven nurseries was $236,071 (67 percent of the assets).



Total Profitability Model (Figure 1)

The Total Profitability Model (illustrated in Figure 1) combines
operating statement and balance sheet figures in three sections: margin
management, asset management and leverage management. Together, they
indicate the firm's return on net worth.
Margin Management
Figures for this section come from Table 12. From nursery total
gain ($587,442) are subtracted total deductions ($500,824) plus
operator's salary ($34,288) to give return to capital ($52,331). This
divided by total gain ($587,442) yields an average net profit margin of
8.91 percent.
Asset Management
Figures for this section come from the asset portion of Table 13.
Current assets ($224,650) plus long term assets ($128,769) make total
assets of $353,419. Total gain ($587,442) divided by total assets
($353,419) gives an asset turnover figure of 1.6622. Asset turnover
times net profit margin (8.91 percent) results in an average return to
capital of 14.81 percent.
Leverage Management
Figures for this section come from the liabilities and net worth
portion of Table 13. Current. liabilities ($20,816) plus long term
liabilities ($96,533). gives average total liabilities of $117,349.
This subtracted from total assets ($353,419) yields average net worth
of $236,071. Total liabilities and net worth divided by net worth
gives a leverage factor of 1.4971. Leverage times return to capital
(14.81 percent) gives a return on net worth of 22.17 percent.













Net worth
Net worth is the difference between "total assets" and "total
liabilities". This is what the owner owns. The average net worth of
all seven nurseries was $236,071 (67 percent of the assets).



Total Profitability Model (Figure 1)

The Total Profitability Model (illustrated in Figure 1) combines
operating statement and balance sheet figures in three sections: margin
management, asset management and leverage management. Together, they
indicate the firm's return on net worth.
Margin Management
Figures for this section come from Table 12. From nursery total
gain ($587,442) are subtracted total deductions ($500,824) plus
operator's salary ($34,288) to give return to capital ($52,331). This
divided by total gain ($587,442) yields an average net profit margin of
8.91 percent.
Asset Management
Figures for this section come from the asset portion of Table 13.
Current assets ($224,650) plus long term assets ($128,769) make total
assets of $353,419. Total gain ($587,442) divided by total assets
($353,419) gives an asset turnover figure of 1.6622. Asset turnover
times net profit margin (8.91 percent) results in an average return to
capital of 14.81 percent.
Leverage Management
Figures for this section come from the liabilities and net worth
portion of Table 13. Current. liabilities ($20,816) plus long term
liabilities ($96,533). gives average total liabilities of $117,349.
This subtracted from total assets ($353,419) yields average net worth
of $236,071. Total liabilities and net worth divided by net worth
gives a leverage factor of 1.4971. Leverage times return to capital
(14.81 percent) gives a return on net worth of 22.17 percent.














LARGIN MANAGEMENT


NET PROFIT
MARGIN


LEVERAGE


Figure 1.--Total profitability model, seven wholesale flowering plant nurseries
In Florida, 1986


RATE OF
RETURN TO
CAPITAL


RETURN ON
NET WORTH











Range of Figures (Table 14)


In this section, information presented earlier is compared to the the
average of the three best and the three worst numbers for each factor. They
provide the range of high-low figures shown In Table 14. These are the average
for the best three numbers and worst three numbers regardless of the nursery or
profit level to which they belong.
As can be seen in Table 14, quite a range of figures was found for most of
the factors. Nursery operators analyzing their own operation should be
suspicious about any of their figures that fall outside these ranges.


Table 14.--Range of figures on factors associated with level of profit,
seven wholesale flowering plant nurseries in Florida, 1986
r--= -=p-~- =-- =-i--~--------------
Average 3 best 3 worst
Item Unit all 7 factor factor Your
nurseries average average nursery

Level of profit'
Net nursery income (Table 12) $ 86,618 179,481 10,971
Factors associated with level of profit
Size of business (Table 1)
Value of own plants sold $ 558,537 943,065 152,991

Production rate (Table 2)
Sales/sq ft of total
bed and bench space - $ 5.81 9.49 4.57

Labor efficiency (Table 3)
Own plant sale/employee- $ 15,990 47,025 11,210

Space use intensity (Table 4)
Annual turnover of plant
inventory value - -% 434 690 351

Use of capital' '(Table 5)
Annual turnover of owned cap-
ital value - --- % 158 227 114_

Level of costs .......(Table 8)
Cost/sq ft of total bed space- $ 6.00 4.95 9.98

Cost efficiency .... (Table 10)
Cost/$ sales adjusted for
change in inventory value $ 0.99 0.94 1.15 __













Seasonality of Sales'(Figure 2)


Figure 2 compares average monthly sales of the seven flowering
plant nurseries with annual average monthly total costs and annual
average monthly cash costs. In 1986, average.flowering plant nursery
sales rose in March, May and December (special holiday markets). Sales
bottomed in January, rose through February to a high for the year in
March, dropped some in April, reached a lower peak in May, then dropped
sharply from June to the season's low in August. Sales strengthened
in September, October and November to reach the second highest peak of
the year in December.
Compared to annual average monthly costs, sales exceeded both total
costs and cash costs six months out of the year. The other six months
(January, June, July, August, September and October), sales were
inadequate to cover even the average cash costs of operating the
business.



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 using the formulas shown and
write the results on the lines provided for this purpose on each table.
Another alternative is to acquire the University of Florida
microcomputer program, FOLAGNBA.BAS, for making these calculations
themselves. Either alternative should provide some valuable insight
into the business side of operating a flowering plant nursery. It
should improve management decisions concerning things that affect the
profitability of the nursery operation.
Nursery operators who find this kind of information to be 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. If you













Seasonality of Sales'(Figure 2)


Figure 2 compares average monthly sales of the seven flowering
plant nurseries with annual average monthly total costs and annual
average monthly cash costs. In 1986, average.flowering plant nursery
sales rose in March, May and December (special holiday markets). Sales
bottomed in January, rose through February to a high for the year in
March, dropped some in April, reached a lower peak in May, then dropped
sharply from June to the season's low in August. Sales strengthened
in September, October and November to reach the second highest peak of
the year in December.
Compared to annual average monthly costs, sales exceeded both total
costs and cash costs six months out of the year. The other six months
(January, June, July, August, September and October), sales were
inadequate to cover even the average cash costs of operating the
business.



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 using the formulas shown and
write the results on the lines provided for this purpose on each table.
Another alternative is to acquire the University of Florida
microcomputer program, FOLAGNBA.BAS, for making these calculations
themselves. Either alternative should provide some valuable insight
into the business side of operating a flowering plant nursery. It
should improve management decisions concerning things that affect the
profitability of the nursery operation.
Nursery operators who find this kind of information to be 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. If you







32






would like to do so, contact the 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.







90 ---




80 -




70-
AVERAGE MONTHLY SALES



0 -


50 ANNUAL AVERAGE MONTHLY TOTAL COSTS




40- ANNUAL AVERAGE MONTHLY CASH COSTS




30 -------i
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

MONTH
Figure 2.--Monthly sales compared to average monthly costs, seven wholesale flowering plant nurseries in
Florida, 1986




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