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Group Title: Circular ; 658
Title: The statement of change in financial position
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00067077/00001
 Material Information
Title: The statement of change in financial position
Series Title: Circular
Alternate Title: Introducing the statement of change in financial position
Physical Description: 11 p. : forms ; 23 cm.
Language: English
Creator: Van Blokland, P. J
Publisher: Florida Cooperative Extension Service
Place of Publication: Gainesville Fla
Publication Date: 1987?
 Subjects
Subject: Financial statements   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Includes bibliographical references (p. 8).
Statement of Responsibility: P.J. van Blokland.
General Note: Cover title: Introducing the statement of change in financial position.
Funding: Circular (Florida Cooperative Extension Service) ;
 Record Information
Bibliographic ID: UF00067077
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 21349596

Table of Contents
    Historic note
        Unnumbered ( 1 )
    Front Cover
        Front Cover
    Table of Contents
        Table of Contents
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
    Reference
        Page 8
    Appendix
        Page 9
        Page 10
        Page 11
    Back Cover
        Back Cover
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




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Contents
Page
Background ..................................... ....... ......................... .......... 1

What is the Statement of Change in Financial Position? .............. .................... 1

What Does the Statement of Change Look Like? .................. ......................... 1

How is the Statement of Change Constructed? ......................................... 2

How is the Statement of Change Used? ...................................................5

Final Comments ............................. ....................................... 7

References .............................................. .................. ...... ... 8

Appendix ............................................. .............................. 9






Central Science
Library

MAR 29 1990

University of Florida
















The Author
P.J. van Blokland is Associate Professor, Food and Resource Economics Department, Institute of Food
an4.griGultural Sciences, University of Florida, Gainesville, FL 32611.









The Statement of Change in Financial Position
P.J. van Blokland


Background
This publication is one in a series of six on the
financial statements used in business today. It
outlines the statement of change in financial posi-
tion. Other publications in the series cover the
balance sheet, the income statement, the cash flow,
how these statements link together, and how they
are used in business analysis. Each publication is
based on a methodology developed by Frey and
Klinefelter called "Coordinated Financial
Statements for Agriculture"(1). Farmers, ranchers,
nursery and grove operators, agricultural lenders,
agribusiness personnel, county extension agents,
and students should find the series of interest.
The reader should look at the publications
concerning the balance sheet and the income state-
ment before reading this one. The publications in
the series are listed in the reference section
(2, 3, 4, 5, 6).

What is the Statement
of Change in Financial Position?
The statement of change in financial position
essentially combines the income statement with the
two adjoining balance sheets and converts these
into a flow statement. It is a more detailed form of
the traditional "flow of funds" statement and
shows where funds were generated during the year
and how these funds were used.
Businesses have used this statement for some
time, but it is fairly new in agriculture. It is,
however, extremely useful for farmers in analyzing
their farm business. It links with the other
statements as shown in Figure 1.


The balance sheet is known as a stock statement
(2). It shows a picture of the business in terms of
assets, liabilities, and net worth on one day in the
year, in much the same way that a camera takes a
snapshot of a particular scene. The income state-
ment, like the statement of change in financial
position, is a flow diagram (3). It illustrates what
happened to the business in terms of revenues,
costs, and income over a period of time, just as a
movie camera records a changing scene over time.
As Figure 1 shows, the balance-sheet day is
December 31 and the two flow statements both run
for a calendar year.
The statement of change in financial position
shows the main sources of funds in a business and
the main ways that these funds were spent. Each
source of funds is matched with its appropriate
use. These matches provide information on growth
funds, net investment, and net changes in debt. A
complete statement of change with its accompany-
ing schedules is shown in the appendix, but first a
simpler version will be examined.

What Does the Statement
of Change Look Like?
A simple statement of change in financial
position is shown in Table 1. The left-hand column
shows the three ways that funds enter the business.
These are (A) from farm operations, additions to
paid-in capital, and gifts, (B) from selling assets,
or (C) from borrowing more money. The center
column illustrates the three ways that funds were
used in the business. These are (D) withdrawals for
family living and estate planning, (E) farm invest-
ment, or (F) debt repayment.


Figure 1: Linking diagram for the statement of change in financial position
Balance Balance
Sheet Sheet
12/31/84 12/31/85

Income Statement
_. 1/1/85 to 12/31/85

Statement of Change
Sin Financial Position
1/1/85 to 12/31/85








The right-hand column, net results, links figures
across the rows. Growth funds are simply the dif-
ference between what was produced by the farm
operations (plus any gifts or inheritances) and what
was spent on family living and estate planning, or
(A) minus (D). Total investment minus asset sales
or total disinvestment shows the net investment for
the year, or (E) minus (B). Finally, the net change
in debt is calculated by subtracting the new debt
borrowed during the year from the debt payments
made, or (F) minus (C). Growth funds for the
business must equal net investment plus the net
change in debt. Also, total sources of funds must
equal total fund uses.
In summary:


Sources of funds


Uses of funds


(A) Adjusted net income (D) Gifts for estate
plus inheritances, planning plus
gifts, and additions withdrawals
to paid-in capital
(B) Decrease in assets (E) Increase in assets
(C) Increase in liabilities (F) Decrease in liabilities

How is the Statement
of Change Constructed?
Growth Funds
We will start with the first main row of Table 1,
the growth funds section, and work our way across
through parts (A) and (D) using a simple numerical
example. Assume that the net income produced
during the year is $25,000, as shown in the income


statement. Now we need to adjust this figure for
what are called "accounting write-offs." This means
adding back depreciation (say $20,000) as a source
of funds, for depreciation is a bookkeeping item
rather than a cash cost.
Next, adjust for any losses and gains from farm
machinery and real estate sales. For example, sup-
pose a piece of machinery was sold for $2,000
when its depreciated or book value was $3,000. In
this transaction there was a "loss" of $1,000 and
this sum must be added back. (The reasoning will
be explained later). Similarly, if another item sold
for $8,000 and its depreciated value was $5,000
there was a "gain" of $3,000 on the sale. This sum
is subtracted for accounting purposes. These items
would be recorded in the income statement and its
accompanying schedules (3).
Finally, assume the farmer in our example re-
ceived $10,000 from his aunt as a gift and $6,000
as paid-in capital from his brother, a partner in the
farm business. This information would be in the
statement of owner equity found on the back of
the balance sheet (2).
The sources of funds in the growth-funds section,
or (A), now look like this:
Net income ...................... $25,000
Plus depreciation ................ 20,000
Plus losses ..................... 1,000
M inus gains .................... (3,000)
Provides operations funds .......... $43,000
Plus gifts received ............... 10,000
Plus addition to paid-in capital .... 6,000
Provides operation plus external funds $59,000 (A)


Table 1: A simple statement of change in financial position

Sources of Funds Uses of Funds Net Results
Total Total Total
From operations Estate Planning
From external sources Withdrawals GROWTH FUNDS
Operations + External (A) Estate + Withdrawals (D) (A)-(D) = (G)

Decrease in CA* Increase in CA
Decrease in IA Increase in IA
Decrease in LTA Increase in LTA NET INVESTMENT
Total Disinvestment (B) Total Investment (E) (E)-(B) = (H)
Increase in CL Decrease in CL
Increase in IL Decrease in IL NET CHANGE
Increase in LTL Decrease in LTL IN DEBT
Total New Debt (C) Total Debt Payment (F) (F)-(C) = (I)

TOTAL SOURCES (A)+(B)+(C) = TOTAL USES (D)+(E)+(F) G MUST = (H)+(I)

*CA, IA and LTA are current, intermediate, and long-term assets, respectively. CL, IL and LTL are current, intermediate, and long-term liabilities.









The second column in the growth funds row, or
(D), is simpler. The farmer in our example spent
$16,000 on family living and set aside $5,000 for
estate transfer. (This would be recorded on the
statement of owner equity (2).) The uses of funds
in the growth funds section are, therefore,

W withdrawals .................... $16,000
Plus estate transfer .............. 5,000
$21,000 (D)


The funds available for business growth, therefore,
are (A) minus (D), or $38,000 ($59,000 $21,000).
Net Investment
Current Assets. The second main row in Table 1
deals with investment changes over the year. These
changes are calculated by subtracting the different
categories of the previous balance sheet figures
from the most recent balance sheet figures. In this
case, subtract the appropriate items in the
December 31, 1984 balance sheet from the items in
the December 31, 1985 balance sheet. Table 2
shows this procedure for current assets. It lists the
1984 and 1985 balance sheet entries and the
changes in each item during the year. Some current
asset items increased by a total of $5,500 and some
decreased by a total of $6,500 between December
31, 1984, and December 31, 1985.
Changes in current assets are recorded on
schedule 1 and schedule 2 of the statement of
change in financial position.
Intermediate Assets. Now let's look at the inter-
mediate assets. Machinery has already been
decreased, as described previously, by selling two
pieces for $2,000 and $8,000. Those who under-


stand the subsequent adjustments for accounting
write-offs can skip the next two paragraphs.
Recall that gains are subtracted and losses added
in the source column of the growth funds row. The
gains were subtracted because they are already
included in the net income of $25,000 for the year
and should not be counted twice. In this example,
a piece of equipment was sold for $8,000, but its
depreciated value for the life of the equipment was
$5,000. The $5,000 is not the annual depreciation
but the sum of the annual depreciations that have
accumulated over all the years that the equipment
was owned. The $8,000 has already been included
in the net income figure for 1985 and the $5,000
through the various depreciation statements and
statements of change in financial position over the
years. So we need to subtract the difference of
$3,000 to square the accounts.
Much the same argument applies to adding back
losses for the second piece of equipment that was
sold. The depreciated value of $3,000 has already
been included in previous depreciation schedules
and statements of change in financial position.
(This is a different $3,000 than in the previous
example.) The sale value ($2,000) is also part of the
net income. We need to add this "loss" of $1,000 to
balance our figures similarly and to get a true value
for the growth funds.
The methodology for investment changes in inter-
mediate assets is similar to the current assets
presentation. The information is found in the same
two balance sheets. It is summarized in schedule 3
of the statement of change in financial position.
Table 3 shows these changes, including a $15,000
machinery purchase made during 1985, as well as
other changes. The intermediate asset changes
show a $19,000 increase and a $15,000 decrease.


Table 2: Example of changes in current assets


Current Assets
Livestock to be sold
Crops to be sold
Cash on hand
Accounts receivable
Cash investment in growing crops
Supplies
Prepaid expenses
TOTAL


Totals From Balance Sheets
12/31/84 12/31/85
$23,000 $21,500
10,000 15,000
8,000 3,300
1,000 1,500
1,200 1,200
800 500


Increase

$5,000

500



$5,500


Decrease
$1,500

4,700


$6,500









Table 3: Example of changes in intermediate assets

Totals From Balance Sheets
Intermediate Assets 12/31/84 12/31/85 Increase Decrease
Breeding Stock $60,000 $58,000 --- $ 2,000
Retirement accounts 35,000 37,500 $2,500 ---
Cash value of life insurance 28,000 29,500 1,500 ---
Nonfarm vehicles 7,000 5,000 --- 2,000
Accounts receivable 3,000 2,000 --- 1,000
Machinery purchases and sales --- --- 15,000 10,000
TOTAL $19,000 $15,000


Long-term Assets. The final part of the net invest-
ment section examines annual changes in long-term
assets. The changes are itemized in Table 4.
The 1985 balance sheet shows purchases of an
additional $20,000 of farm real estate and expen-
ditures of $2,000 on nonfarm real estate during the
year. These changes might be the results of buying
a neighboring 20-acre tract and adding improve-
ments to an investment in a town rental property,
respectively. Changes in long-term assets are
recorded on schedule 4 of the statement of change.
We have now completed all the asset changes
during the year. In summary, the net investment
section looks like this:


Current assets
Intermediate assets
Long-term assets
Total


Increase
$ 5,500
19,000
22,000
$ 46,500


Decrease
$ 6,500
15,000
2,000
(E) $ 23,500 (B)


Therefore, net investment is (E) minus (B), or
$23,000. So the farmer added $46,500 of new assets
and sold $23,500 of existing assets, giving a net
investment of $23,000.


Net Change in Debt
The third and final section of the statement of
change in financial position, shown in the last main
row of Table 1, deals with changes in debt over the
year. The source of funds column shows new bor-
rowing under current, intermediate and long-term
liabilities. The use of funds column lists the debt
payments under these same three categories. Bor-
rowing increases the funds for the business, and
these funds are depleted when we pay back our
debts. Let's take the increases and decreases in
current liabilities as an example (Table 5).
The current portion of intermediate and long-
term liabilities represents the principal that must
be paid annually on these debts. For example, sup-
pose that the farmer owes $50,000 for a tractor he
purchased, and he pays that loan back in five years
with principal payments of $10,000 per year. The
balance sheet would then show $10,000 as a cur-
rent liability which must be paid in the following
year, and $40,000 as an intermediate liability which
will be paid in subsequent years. The same method
applies to mortgages. The current portion is a cur-
rent liability and the remainder is entered as a
long-term liability.


Table 4: Example of changes in long-term assets

Totals From Balance Sheets
Long-term Assets 12/31/84 12/31/85 Increase Decrease
Farm real estate $750,000 $770,000 $20,000 ---
Nonfarm real estate 20,000 22,000 2,000 ---
Accounts receivable 30,000 28,000 --- $2,000
TOTAL $22,000 $2,000









Table 5: Example of changes in current liabilities


Current Liabilities
Accounts payable
Notes payable
Current portion of intermediate
and long-term liabilities
Accrued interest
Accrued property tax
Accrued income tax and
Social Security tax
TOTAL


Totals From Balance Sheets
12/31/84 12/31/85
$ 2,000 $ 3,000
52,000 45,000


20,000
14,000
6,000

12,000


20,000
15,000
6,200

11,000


In Table 5, some of the current liability items
increased $2,200 during the year and other items
decreased by $8,000. The example continues in
Table 6 with intermediate and long-term liabilities.
Changes in current liabilities are recorded on
schedule 5 of the statement of change, and changes
in intermediate and long-term liabilities are record-
ed on schedules 6 and 7, respectively.
The liability changes over the year are now com-
plete. These are summarized to determine the net
change in debt in the business during the year:


Current liabilities
Intermediate liabilities
Long-term liabilities
Total


Increase
$ 2,200
2,800
15,000
$ 20,000 (C)


Decrease
$ 8,000
5,000
22,000
$ 35,000 (F)


Therefore, net change in debt is (F) minus (C), or
$15,000.


Table 6: Example of changes in intermediate and


We have now discussed how growth funds, net
investment, and net changes in debt are measured.
These items are brought together in Table 7, which
summarizes the complete statement of change in
financial position.
There are checks for all these figures. Total
sources must equal total uses, or $102,500. Growth
funds equal net investment plus net change in
debt, i.e., $38,000 =$23,000 + $15,000.

How is the Statement
of Change Used?
The statement of change in financial position is
an extremely useful statement for the farm family.
It shows the sources of funds, how they were used,
and what the results were through growth funds,
investment, and debt changes. It provides informa-
tion which the business needs for financial
analysis. Each business differs and some informa-
tion may be more timely than other data. In this


long-term liabilities


Intermediate Liabilities
Notes payable
Life insurance policy loans
TOTAL

Long-term Liabilities
Farm mortgages
Nonfarm mortgages
Land contract*
TOTAL


Totals From Balance
12/31/84
$ 50,000
6,000


200,000
40,000


Increase
$1,000


Decrease

$7,000


1,000
200


$2,200


1,000
$8,000


Sheets
12/31/85
$ 45,000
8,800



185,000
33,000
15,000


Increase

$2,800
$2,800




$15,000
$15,000


Decrease
$5,000

$5,000


$15,000
7,000

$22,000


*The land contract represents the seller holding legal title to the property until the buyer has paid enough for title transfer. In this case the
farmer has bought an additional 15 acres, but the seller insists on complete payment before transferring title to the land.









Table 7: A summary of the example statement of change in financial position

Sources Uses Net Change
(A) Operations, external $59,000 (D) Withdrawals $21,000 (A)-(D) = Growth Funds $38,000
(B) Disinvestment 23,500 (E) Investment 46,500 (E)-(B) = Net Investment 23,000
(C) Net debt 20,000 (F) Debt repayment 35,000 (F)-(C) = Net change in debt 15,000
(A)+(B)+(C) = (D)+(E)+(F) =
TOTAL SOURCES $102,500 TOTAL USES $102,500


case, however, we will run through most of the
figures in the previous examples without emphasiz-
ing any particular set of numbers. This procedure
should provide the reader with some ideas on how
to use this statement.

Financial Analysis
Sources of Funds. In this example, there was
$102,500 available for the business during 1985.
(See Table 7.) About 57 percent came from opera-
tions and external sources (A), 23 percent from sell-
ing assets (B), and the remaining 20 percent from
new borrowing (C).
Section (A) funds were itemized on page 2.
Net income or what was earned by the farm family
during the year was only 24 percent ($25,000) of
the total funds. As net income is net farm income
plus off-farm income minus taxes and Social Secur-
ity payments, it is probable that the contribution of
net farm income to total funds available was less
than this percentage. This is because most farms
today rely heavily on off-farm income for farm
cash flow. Many farms are also said to be "living
off depreciation," and this example shows that
depreciation contributed $20,000 to the available
funds during the year. Operation funds, therefore,
came mainly from net income ($25,000) and
depreciation ($20,000). The remaining source in
section (A) is "external." The business received
$10,000 as a gift and $6,000 as paid-in capital, or
$16,000 from these external sources.
These figures suggest a heavy reliance on exter-
nal sources, depreciation, and perhaps off-farm in-
come in supplying section (A) funds to the business
during 1985. It is unlikely that the external sources
will permanently provide business funds. There-
fore, the farmer must determine how to increase
the contribution of farm sources to total funds,
assuming that the farm is meant to be the main
income contributor for the family.
Uses of Funds. Some $21,000 of the $59,000
available was withdrawn (see (A) and (D) in Table
7). As described previously, $16,000 was used for


family living expenses and the remaining $5,000
was set aside for estate intergeneration transfer.
The individual farmer must decide whether living
expenses are reasonable or not. Decisions must also
be made on regularly setting nontaxable funds
aside to transfer the estate to named heirs.
After withdrawing the $21,000, there was $38,000
remaining for growth in the business. As Table 7
shows, $23,000 of the growth funds was spent on
net investment and $15,000 in reducing debts. Let's
first examine the investment picture and then turn
to the debt changes.
Changes in Investments. We can examine the
investment picture by looking at the changes in
current, intermediate, and long-term assets.
As shown in Table 2, current assets fell by $1,000
($6,500-$5,500) during the year, mainly because of
a $4,700 reduction in cash on hand. This reduction,
coupled with a $1,500 decline in livestock inven-
tory, more than compensated for the $5,000 in-
crease in crop inventory.
As shown in Table 3, intermediate assets increased
$4,000 ($19,000-$15,000) in 1985. However, this
growth depended entirely on investments in retire-
ment accounts and life insurance, neither of which
are directly related to farm productivity. There
would have been no growth without these invest-
ments, since on-farm changes cancel each other out.
Long-term assets increased because the farmer
bought additional farm real estate. When all the
asset changes are combined, the business showed a
net investment of $23,000 for the year. This in-
crease in net investment is a good sign, but it is
tempered by the importance of real estate and
farm-family investments to this figure. The reduc-
tion in liquid inventory could cause problems in
the future.
Changes in Debt. The last section in the statement
of change in financial position looks at debt by
examining the changes in current, intermediate,
and long-term liabilities during the year. (These
changes were itemized in Table 5 and Table 6.)
Current liabilities decreased by $5,800








($8,000-$2,200) mainly because notes payable (i.e.,
an operating loan) fell by $7,000. Intermediate and
long-term liabilities show similar trends. The
farmer reduced intermediate debt by $2,200
($5,000-$2,800) and long-term debt by $7,000
($22,000-$15,000). The business is apparently pay-
ing its debts regularly. For example, the farmer
pays $20,000 each year as the current portion of
intermediate and long-term debts, or $5,000 and
$15,000 respectively. Consequently, intermediate
notes payable fell from $50,000 to $45,000, and the
outstanding farm mortgage fell from $200,000 to
$185,000.
The net change in debt in the business over the
year is $15,000. This sum results from combining
the changes in current, intermediate, and long-term
liabilities.
Summary of Analysis
Table 7 shows that the farmer obtained $102,500
in 1985 and used these funds for withdrawals,
investment, and debt repayment. The $38,000 of
growth funds was spent on new investment
($23,000) and in reducing debt ($15,000). The state-
ment of change enables the farmer to break the


business down into different portions and then ex-
amine each portion. This procedure is particularly
useful in seeing trends in these different areas over
the years.
Here, we necessarily have only one statement to
examine. The overall impression is that the
business is still sound but must improve farm pro-
ductivity in the future. And the farmer must be
careful to channel future investments into income-
producing rather than capital asset ventures, at
least for a year or two.


Final Comments
A complete statement of change with its accom-
panying schedules is shown in the appendix.
Individuals will learn about their own business
by starting to keep this financial statement. Balance
sheets, income statements, and cash flows are also
vital. This latter set of statements will be com-
pleted by adding the statement of change in finan-
cial position. These four statements will then
provide sufficient information for sensible
managerial decisions.









References


1. Frey, Thomas L. and Danny A. Klinefelter. "Coor-
dinated Financial Statements for Agriculture," 2nd
edition, Agri Finance. Skokie, IL. 1980.


2. van Blokland, P.J. Introducing the Balance Sheet,
Extension Circular No. 651. Florida Cooperative
Extension Service, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, FL
32611.


3. van Blokland, P.J. Introducing the Income Statement,
Extension Circular No. 645. Florida Cooperative
Extension Service, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, FL
32611.


4. van Blokland, P.J. Introducing the Cash Flow,
Extension Circular No. 656. Florida Cooperative
Extension Service, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, FL
32611.
5. van Blokland, P.J. Linking the Financial Statements,
Extension Circular No. 657. Florida Cooperative
Extension Service, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, FL
32611.

6. van Blokland, P.J. Introducing Farm Business Analysis,
Extension Circular No. 655. Florida Cooperative
Extension Service, Institute of Food and Agricultural
Sciences, University of Florida, Gainesville, FL
32611.











This form is copyrighted. It is a
violation of the U.S. Copyright Law
to reproduce it in any manner.


O Actual Name
O Projected Date C
SOURCE


APPENDIX


STATEMENT OF CHANGE IN FINANCIAL POSITION
Address
completed 19__ For 12 Month Period Ending 19
ES OF PURCHASING POWER L APPLICATIONS OF PURCHASING POWER NET RESULTS


Net Income....................... $
Add: Depreciation........... _
Losses
Su lrdIac Guns .
FUfJDS PROVIDED B, OPERATIONS $
GilTs anl Inneril.ncre ReceiveO
AO ilrl .ircns i, Paiq In i:',pr dl
FLIJD5 FiROM I.PERATIOUSJ '. E T Ci fITP'IBI.lTIIft|1, I il,


Current A-seii win riei Decreases
LivesIoc &o poultry oDe solO IS. n I i.
Grain& teed Scn 1)
T.rolr IScri 21
Gro"ss Decreases in Inlermealade Asi-'e
Macnhnery 5. equipment sajls _
Tol3iiiScn 31
Gross Decreaiss i n Fid Ai eis
Fjrm real eslcje i31es
To)ldi Icnr 41 _
T~lTAL [iriSrJVESTMEIiT '.

Current LiabiliieS willn FJ E Incr3easep
Accounts p3y3tlle
Sr.jri lerm ncrles
Current porton or term Oapr I Se __
Toal (S n. 5) .................
Gross Increases in Intermediate Liabilities
Notes ......... ..........
Total (Sch. 6).... ..............
Gross Increases in Long Term Liabilities
Mortgages on farm real estate........
Land contracts .................
Total (Sch. 7) ...................
TOTAL NEW BORROWINGS .................... (c) __


IrPi Wiharawals Slfn 1 12-1
t|Pl Gllhdrdndl. 1`S3 l I Pz l, l
Aod IvII 'rn maoe I,'r ei lie Iransler






WiITHLiRAWAL'

Current A.seli will Ncel Incre.ses
Lie-loci. & poultry 10 tie sold ISch I
Grin .& teed iSch 1i
T:jill(Scn 21
Grons Incre.j-,I in Inlermeijale As.els
Mjcnlnery & equipment pr[rcrij.se-
Trotai IS n 31
Gross Incr.ae': In FI.-a A;sel'
F.rm rial estate pur .:;,i ei
TOn.il IS:h 4i
TOT 141 IJvlETMErNT


$


loll'


Iurrenl Li.A3iliP111 wiltn Nel DecrCea-eS
Accounis p.rv.)rjle $
Shnrl lerm noies
I: urrenl p:rihi or 01 lerm a le I (S: n I I
Total Scn. 5) ..................____ $
Gross Decreases in Intermediate Liabilities
Notes ................................
Total (Sch. 6)...................
Gross Decreases in Long Term Liabilities
Mortgages on farm real estate....... _
Land contracts .................
Total(Sch. 7) .............. .....
TOTAL DEBT REPAYMENT ..................... (f)$


TOTAL SOURCES (a + b + c) $ EQUAL TOTAL APPLICATIONS (d + e + f) $
Developed by Thomas L. Frey and Danny A Kllneeller. Dept of Agricultural Economics. Cooperative Ext Service University of Illinois 1980 AGRI FINANCE Available from Agr Finance, 5520- Touhy Ave, Skokie, IL 60077


GROWTH FiJPuDS
j = igi












ifET rivESTMEIrjT
e-b = $ (h)


NET CHANGE IN
INDEBTEDNESS
f-c = $_______ (I)


_11(ACCURACY CHECK g must = h+i)


I I


I







This form is copyrighted. It is a
violation of the U.S. Copyright Law
to reproduce it in any manner.


SCHEDULE 1 NET CHANGES IN SPECIFIED CURRENT ITEMS
Totals from Balance Sheets


Livestock & poultry to be sold ....................... $$ $
Crops & feed ....................................
Accounts payable (farm & non-farm) .................
Short term notes ............... ..............
Current oririin f 'neirnedidate nd loni term debt
SCHEDULE 2 NET CHANGES IN OTHER CURRENT ASSETS
I I air irOn, B,,3l.jni:6 e h .
I eiinning n, Encliin rg '. r re.

Casn or rherlingq ..

S3vin s Accouni; & lime c rp ieii: a ....
Heoaqrnq a. i,"oijril iii ...
Marlh eiin ie ironis .j ~ uri i r
Ijiies S.ajccOiunli reeivjDle ...
Cj nh invesliniel in Qrowi ini I: rp .

Supplies
Prepajid eper-e .._ ...

irier


S
SCHEDULE 3 CHANGES IN OTHER INTERMEDIATE ASSETS


GROSS CHANGES
Principal payments received on noles rectiivale
New notes receivable ........... .......... .......................
Petiremeni accounts ............... ... ............... .......

Cash value of life insurance .......... .. .... .......... .. ....
Securities not readily marketable ....................................... .......
Personal & recreational vehicles ........................................

Household goods & personal effects ...... ...................... ..
Other ................................................... .....
NET CHANGES: beginning Inv. Ending Inv.
Breeding livestock ............................ $ $
T O T A L . ..... .. .. .. . .. .. .. .. .. . ....


lr.. .. ..': ... ..


Developed by Thomas L Frey and Danny A Klinefelter. Dept o Agricultural Economics, Cooperative Ext Service, University of Illinois. (1980 AGRI FINANCE Available from Agri Finance. 5520-G Touhy Ave. Skokie, IL 60077


Li~:e1c I~I


~"`iif::i::::::: """' -"" ~~';
'~-....
.. .....
""'-`~.......~ ,.r.l::::
I':::::i::::~' "i"'
i .:::: .............~~~~;~~lllI
""";"'"""''...'.." ",......
"" ~'~" ".....-.. '.....


$ $


S__ TOTAL


m


--t






This form is copyrighted. It is a
violation of the U.S. Copyright Law
to reproduce it in any manner.


SCHEDULE 4 GROSS CHANGES IN OTHER FIXED ASSETS


Increase Decrease
Principal payments received on contracts & notes receivable .......................... $
New contracts & notes receivable ...................................... ........... $
Non-farm real estate ..........................................................
Other .............. ...................................... .........
TOTAL................................................. $ $
SCHEDULE 5 NET CHANGE IN OTHER CURRENT LIABILITIES
Totals from Balance Sheets
Beginning Inv. .E nding Inv. Increase Decrease
Accrued interest ....................... ........ $ $
Accrued property taxes .........................
Accrued real estate taxes ......................._
Accrued employer payroll withholding ..............
Accrued income & soc. sec. taxes ............... .
Accrued rents & lease payments.................
Other
TOTAL .. $ $
SCHEDULE 6 BOSS CHANGES IN OTHER INTERMEDIATE LIABILITIES
Increase Decrease
Sales contracts $ $
Life insurance policy loans
O th e r . . . . .. . . . . . . . . . . . . .
TOTA L ..................................................... ... ....... .. $ $
SCHEDULE 7 GROSS CHANGES IN OTHER LONG TERM LIABILITIES


Non-farm real estate mortgages ..................... ................ ............ $
Other ................................... .................... ..........
T O T A L .. .. . .. . .. .. .. .. .. .. .. .. .. .. .. .. .. ........ $


Increase Decrease
$


$






































































This publication was produced at a cost of $452.00 or $.452 per copy, to provide information about
the financial statements used in business. 11-1 M-88



COOPERATIVE EXTENSION SERVICE, UNIVERSITY OF FLORIDA, INSTITUTE OF FOOD AND AGRICULTURAL SCIENCES, K.R. Tefertiller,
director, in cooperation with the United States Department of Agriculture, publishes this information to further the purpose of the May 8 and
June 30,1914 Acts of Congress; and is authorized to provide research, educational information and other services only to individuals and institu-
tions that function without regard to race, color, sex or national origin. Single copies of Extension publications (excluding 4-H and Youth publica-
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available from C.M. Hinton, Publications Distribution Center, IFAS Building 664, University of Florida, Gainesville, Florida 32611. Before publicizing this publication,
editors should contact this address to determine availability.




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