• TABLE OF CONTENTS
HIDE
 Front Cover
 Front Matter
 Table of Contents
 Introduction
 Getting started
 Naming the transactions and...
 Posting daily income and cost...
 Printing transaction and enterprise...
 Generating a financial stateme...
 Summary and conclusions
 Acknowledgement






Group Title: Computer series
Title: How to use the Mississippi State University Farm Record System
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00094888/00001
 Material Information
Title: How to use the Mississippi State University Farm Record System
Series Title: Computer series - Florida Cooperative Extension Service ; 577
Physical Description: 31 p. : ; 23 cm.
Language: English
Creator: Muraro, R. P.
Levins, Richard A.
Publisher: Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 1983
Copyright Date: 1983
 Subjects
Subject: Farm management -- Computer programs -- Records and correspondence   ( lcsh )
Genre: bibliography   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Bibliography: p. 31.
General Note: Cover title.
Statement of Responsibility: Ron Muraro and Dick Levins.
 Record Information
Bibliographic ID: UF00094888
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 10759293

Table of Contents
    Front Cover
        Page 1
        Page 2
    Front Matter
        Page 3
    Table of Contents
        Page 4
    Introduction
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
    Getting started
        Page 10
        Page 11
        Page 12
    Naming the transactions and enterprises
        Page 13
        Page 14
        Page 15
    Posting daily income and cost entries
        Page 16
        Page 17
        Page 18
    Printing transaction and enterprise reports
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
    Generating a financial statement
        Page 28
        Page 29
    Summary and conclusions
        Page 30
    Acknowledgement
        Page 31
        Page 32
Full Text
September 1983
-* '' ,' *


Circular 577


HOW to USE the

MISSISSIPPI STATE UNIVERSITY

FARM RECORD SYSTEM


n ]
-,--- ii. o "3 d


I COMPUTER SERIES


Ron Muraro and Dick Levins


w m


Florida Cooperative Extension Service / Institute of Food and Agricultural Sciences / University of Florida / John T. Woeste, Dean
































































The use of trade names in the text of this publication is solely for the purpose of
providing specific information. It is not a guarantee, warranty, or endorsement of
the products named and does not signify that they are approved to the exclusion of
others.










How to Use the


Mississippi State University Farm Record System




by




Ron Muraro
Farm Management Economist
Food and Resource Economics Department
AREC, Lake Alfred, FL 33850




and


Dick Levins
Farm Management Economist
Food and Resource Economics Department
University of Florida, Gainesville, FL 32611









ABSTRACT

A microcomputer program to keep farm financial records is presented with ex-
amples. Growers and accountants can use this microcomputer program to keep farm
costs, revenue and capital investment records as well as summarize each into a
separate or combined report.

Key words: capital investment, enterprise codes, financial records, micro-
computer, net income, revenue, transaction codes.













TABLE OF CONTENTS


CHAPTER 1. INTRODUCTION .... .............. ................................

CHAPTER 2. GETTING STARTED.................................................

CHAPTER 3. NAMING THE TRANSACTIONS AND ENTERRISES...........................

CHAPTER 4. POSTING DAILY INCOME AND COST ENTRIES............................

CHAPTER 5. PRINTING TRANSACTION AND ENTERPRISE REPORTS......................

CHAPTER 6. KEEPING CAPITAL INVESTMENT-DEPRECIATION RECORDS..................

CHAPTER 7. GENERATING A FINANCIAL STATEMENT................................

CHAPTER 8. SUMMARY AND CONCLUSIONS ..........................................

REFERENCES .... .............. ...............................................

IFAS SOFTWARE ORDERING PROCEDURE.. ........................................


Page

5

10

13

16

19

23

28

30

31

31










CHAPTER 1


INTRODUCTION

The era of shoeboxx" records is long past and has no place in today's sophis-
ticated agribusiness industry. Farmers need to have records which measure the
position and progress of their businesses. As a minimum, today's agri-manager must
have a record system that classifies income and expense items and provides enough
information for income tax reporting. The information contained in a good set of
farm records is also essential for making profit maximizing management decisions.

Reasons for Keeping Records

Good records are just as important as good cultural practices in the manage-
ment of a farming operation. Without records, there is no basis for comparison
with other seasons, nor is there any way to see if an adequate return is received
for the investment.

Effective financial planning calls for sound business practices on the part of
the farmer to control and manage the use of money. This means good records and a
record keeping system that will provide the information needed for future planning.

There are at least five good reasons for having a record system. They are:

1. To measure financial success and progress of the business over time.

2. To comply with tax reporting requirements and do tax planning and
management.

3. To establish a factual basis for comparisons
a. with past years,
b. with goals that have been set and/or
c. with the performance of other comparable operations.

4. To aid in planning for the future by providing data that will help in
estimating the effects of operational changes or changing economic
conditions.

5. To aid in obtaining credit.

Microcomputers Simplify Record Keeping

In spite of the importance of good financial records in farm management, the
task of keeping those records has never been well-liked by farm operators. Record
keeping has always required long hours for both recording and summarizing data.

Microcomputers can simplify a farmer's record keeping process by helping to
organize and summarize financial information quickly. The design of a computer
record system allows quick recall of specific expense items as well as profitabil-
ity comparisons of different farm enterprises. Summary schedules can be tabulated
for completing income tax reports and necessary financial records required by
lenders can be accessed quickly.










However, a farmer should not expect a microcomputer to eliminate the time
required to record (enter into a computer) the daily transactions of record keep-
ing. The same records being kept by hand now will require at least the same amount
of time to type into a microcomputer. The time saving is in data retrieval and
financial analysis needed for management decisions. The microcomputer is only
another tool to aid the farm operator in business management.

A Microcomputer Farm Record System

Keeping farm records on a microcomputer requires a specialized record keeping
program. Several such programs are available, and each of them approaches the
record keeping task in a slightly different way. The type and brand of microcom-
puter for which these programs are written also varies considerably.

This publication describes a microcomputer program written specifically for
farm record keeping. The program, which was written by Mr. Michael Argo and Dr.
Wallace Killcreas at Mississippi State University, has two major parts. The first
part keeps track of the usual farm ledger entries (crop sales, production costs,
etc.) and summarizes these entries on a monthly, annual or other time period basis.
Sample reports which can be produced with this part of the program are shown in
Figures 1-1 and 1-2. In the second part, depreciation schedules for equipment and
machinery can be maintained. A sample report produced by this part of the program
is illustrated in Figure 1-3.

Hardware Requirements

The Mississippi State University (MSU) Farm Record System was written in
Microsoft BASIC for Radio Shack microcomputers. The version described here re-
quires a Radio Shack Model III microcomputer with 48K of memory, two disk drives,
and a printer with at least 80 characters per line. Versions of the program are
also available for Radio Shack's Model II system. The operating instructions for
this version are similar to those for the Model III version.











Time Period : Jan 1 82 Dec 31 82
Month 9 Sep 82
Transaction Range: 1 31
Trnsactns not listed have zero period totals.
Trnsactn Month Total Period Total % of Period Total
-------------------- Costs--------------------------
Management Salary
$3,000.00 $12,000.00 25
Labor
$2,200.00 $7,700.00 29
Fuel
$650.00 $2,750.00 24
Repairs
$75.00 $400.00 19
Maintenance
$100.00 $375.00 27
Fertilizer/Lime
$4,000.00 $18,000.00 22
Herbicide
$50.00 $250.00 20
Veterinary/Medicine
$250.00 $1,150.00 22
Utilities
$300.00 $1,200.00 25
Telephone
$150.00 $600.00 25
Land Rent
$210.00 $840.00 25
Subtotal = $10,985.00
-------------------- Incomes-------------
Interest Income
$750.00 $3,000.00 25
Calf Sales
$31,200.00 $31,200.00 100
Cull Cattle Sales
$8,100.00 $8,100.00 100
Subtotal = $40,050.00
----- ------------------Quantities ------------------------
Head of Cattle Sold
150.0 150.0 100
Tons of Hay Sold
100.0 260.0 38
Subtotal = 250.0
------------------------------------------------------------
-------------------------------- Totals-------------------------
Variable Cost: $10,985.00 Income: $40,050.00
That is all for this month


Figure 1-1. Sample Monthly Transaction Report.













Report Generated on 3 / 9 / 83
Enterprise 2 Beef Cattle
Time Period, Jan. 1 82 Dec 31 82
Over Entire Time Period.


Transaction Ranges 1 31
Trnsactns not listed have zero p
Trnsactn Month Tota
--------------------------------
Fertilizer/Lime
$9,000.00
Herbicide
$125.00
Supplemental Feed
$2,500.00
Mineral/Salt
$700.00
Veterinary/Medicine
$1,150.00
Subtotal = $13,475.00
--------------------------------
Calf Sales
$31,200.00
Cull Cattle Sales
$8,100.00
Subtotal $39,300.00
------------------------------
Head of Cattle Sold
150.C
Subtotal 150.C

Enterprises Allocated Amo
Cost
Hay Production $3,986.0C
Equipment $2,115.0C
Subtotal $6,101.0C


Overhead Allocated
Transactions Per
Management Salary

Labor

Utilities

Telephone

Interest Expense

Property Taxes

FICA Taxes

Interest Income

Subtotal: Cost =

-----------------------


*iod Total

12,000.00

$7,700.00

$1,200.00

$600.00

$3,500.00

$600.00

$1,250.00


eriod totals.
.1 Period Total % of Period Total
Costs -------------------------


$9,000.00 100

$125.00 100

$2,500.00 100

$700.00 100

$1,150.00 100

Incomes-------------------------

$31,200.00 100

$8,100.00 100

?uantities---------------

150.0 100


iunt Allocated
Income
$0.00
$0.00
$0.00


Amount Allocated

$8,400.00

$5,390.00

$960.00

$480.00

$2,800.00

$600.00

$875.00


$3,000.00 $2,250.00


% Allocated

40
60


% Allocated

70

70

80

80

80

100

70

75


$19,505.00. Income = $2,250.00
--------- Totals-------------


Variable Costs $39,081.00 $'
--------------------------------------.
For 66000 lbs of beefs
Variable cost/lbs of beef $0.59 Inc
That is all for this time period

Figure 1-2. Sample Enterprise Report.


41,550.00


ome/lbs of beef $0.63


Q
I

)

I




)
)

)


-------------------------------"---"---------"------


-------------


I














Depreciation Schedule
Time Period is Jan 82 through

Property New Tractor 60 HP
Record No..
Date Acquired (MMYY)
Cost or Basis
Special First Year
Est. Salv. Value
Adjusted Basis
Depr. Allowed Prior Periods
Undepr. Amount
Life Yrs
Meth. Used
Depr. this Period
Depr. for Dec


Dec 82


1
178
$15,000.00
$3,000.00
$1,500.00
$10,500.00
$4,200.00
$6,300.00
10
SL
$1,050.00
$87.50


$ Accum. Totals


$15,000.00
$3,000.00
$1,500.00
$10,500.00
$4,200.00
$6,300.00


$1,050.00
$87.50


Property Used Hay Baler $ Accum. Totals
Record No. 2
Date Acquired (MMYY) 180
Cost of Basis $4,000.00 $38,000.00
Special First Year $0.00 $3,000.00
Est. Salv. Value $0.00 $1,750.00
Adjusted Basis $4,000.00 $33,250.00
Depr. Allowed Prior Periods $2,040.00 $15,221.64
Undepr. Amount $1,960.00 $18,028.36
Life Yrs 5
Meth. Used DB
Depr. this Period $588.00 $4,268.25
Depr. for Dec $49.00 $355.69


Property New Pick-up Truck $ Accum. Totals
Record No. 2002
Date Acquired (MMYY) 182
Cost or Basis $8,000.00 $61,000.00
Special First Year $0.00 $3,000.00
Est. Salv. Value $0.00 $1,750.00
Adjusted Basis $8,000.00 $56,250.00
Depr. Allowed Prior Periods $0.00 $17,471.64
Undepr. Amount $8,000.00 $38,778.36
Life Yrs 5
Meth. Used AA
Depr. this Period $1,200.00 $8,768.25
Depr. for Dec $100.00 $730.69


Total Depr this Period $9,351.58
Total Depr for Dec $827.91
Special First Year for This Period $0.00


SL Straight Line
DB Declining Bal
SD = Sum of Digits
AA ACRS
AC Alternate ACRS
* Indicates disposal during period
Z Indicates switching from DB to SL
End of Schedule

Figure 1-3. Sample of a Partial Depreciation Report.


~----~---------~-----~----~~


~_~-----~---~----------~--~---/










CHAPTER 2


GETTING STARTED

You will find that the Mississippi State University Farm Record System is easy
to learn and use. In this chapter, some of the basic information you will need to
get started is presented.

Diskettes

To run this version of the Mississippi State University Farm Record System,
two 5 1/4" diskettes are necessary. The first is the program disk furnished to you
by your Extension Service. The second is a formatted blank diskette which you must
furnish. If you are unfamiliar with the process of formatting a blank diskette, a
set of instructions is provided in the Disk System Owner's Manual which came with
your machine.

Throughout this publication, the diskette you received from your Extension
Service will be referred to as the "program diskette." The program which allows
your computer to be used for farm record keeping is stored on the program diskette
and the farm records you keep are stored on the second diskette, which is called
the "data diskette." Since the data diskette is nothing more than an electronic
ledger book, you may find it convenient to make a new one for each tax year's rec-
ords.

You should learn and use the procedure for backing up (copying) the program
and data diskettes. Making backups of diskettes that contain important information
is cheap insurance against costly loss of data. The use of the BACKUP command is
described in the Disk System Owner's Manual.

Running the Program

Begin by turning on the computer and the printer. Now place the program
diskette in Disk Drive 0 (the bottom drive) and the data diskette in Disk Drive 1
(the top drive). Press the RESET button. The disk drives will whirr for a moment,
some Radio Shack identification information will appear on the screen, and the
computer will ask for the current date in the following manner:


SEnter Date (MM/DD/YY)?


You should type in the date in the requested format: a two-digit month number, a
slash, a two-digit day number, a slash, and a two-digit year number. For example,
November 22, 1982 would be entered as 11/22/82. February 9, 1981 would be entered
as 02/09/81. If you use an incorrect format, the computer will give you a chance
to try again.

The computer will now ask for the time of day.


Enter Time (HH.MM.SS)-?










Simply press the ENTER key in response to this question, since the time of day is
not used in the farm records program.

Now the computer will say "TRSDOS Ready." At this point, you should type the
command BASIC MAIN and press the ENTER key. The program is now running.

The first thing the program does is to display some identification information
on the screen:


This program was developed at Mississippi State University by
Mr. Mike Argo and Dr. Wallace Killcreas
Experimental Statistics Department
and
Agricultural Economics Department
Mississippi Agricultural and Forestry Experiment Station
and Distributed by
The Mississippi Cooperative Extension Service

Press Enter to Continue.?
J


The General Menu


Press the ENTER key and the "Main Menu" appears on the screen. It looks like
this.


General Menu

1 = Select Transaction Menu
2 = Select Capital Investment Menu
3 = Terminate this Session

Enter Appropriate Number? 1


A computer "menu" is much the same as the familiar restaurant variety. It is
simply a list of things the computer is ready to do for you. You tell the computer
which of those things you want to do next by typing the number corresponding to
your selection.

Selecting option 1 allows you to use those parts of the program which are
concerned with entering income and production cost data and printing reports based
on those entries.

If you select option 2, you will use that part of the program which allows
equipment and machinery depreciation data to be entered and depreciation reports to
be printed.

Typing a 3 causes the program to end. Even though there are other ways to end
a program (turning off the power, pressing the BREAK key, etc.), your financial
data is best protected by always ending the program each time you use it with op-
tion 3 of the general menu.









Selecting option 1 begins the process which allows you to name the transac-
tions and enterprises for which you will keep records. How this process works is
the subject of the next chapter.










CHAPTER 3


NAMING THE TRANSACTIONS AND ENTERPRISES

If you select option 1 from the General Menu, the following Transaction Menu
should appear on the screen:


1 = Enter Records
2 = Summary Reports
3 = Record Listings
4 = Record Changes
5 = List Identification
6 = Update Identifications
7 = Change Today's Date
8 = Clean-up
9 = Terminate


ENTER CODE OF DESIRED PROCEDURE? 6


The first and most important step when setting up a record system is naming
the transaction and enterprise codes to be used. Enter option 6, Update Identifi-
cations. Transactions are items to which data are entered. For example, the
transactions for a dairy operation may include milk sales, feed cost, or pounds of
milk produced. A citrus operation may have such transactions as spray costs, fruit
sales, or boxes of fruit harvested.

Enterprises are the individual components of the overall business to which the
transactions are charged. For the dairy operation, the enterprises may be milking
herd, heifer replacement, or silage production. On the other hand, a citrus oper-
ation may have an orange or grapefruit block, harvesting, or grove equipment as
enterprises.

The purpose of being able to separate the records into enterprises is to
identify the strengths and weaknesses in the business. Analyzing the overall
business may indicate a problem exists but may not detect what is causing the
problem. Through enterprise analysis, management decision making is enhanced and
greater financial returns can be realized. The MSU Farm Record System automati-
cally assigns enterprise #1 to be "overhead," but the selection of the remaining
enterprises and all of the transactions is up to you. Existing record systems will
most often be used in selecting appropriate enterprise and transaction names.

Transactions must be identified as an "Income" (I), "Cost" (C), or a "Quan-
tity" (Q). This allows you to keep up with physical data (pounds of fertilizer,
head of hogs, etc.) as well as financial data.

You will be given a chance to add your transactions, then your enterprises,
one at a time. For our example, we will be using a beef cattle and hay farm oper-
ation. Figure 3-1 shows the transaction and enterprise codes used. Note that
"blank" transaction names were included. Leaving five or ten blank transaction
codes will allow additional transaction names to be entered in the future along
with their respective type (Cost, Income or Quantity).










Once the transaction and enterprise codes are named and printed, the program
automatically returns to the Transaction Menu. Now you are ready to make daily
cost and income entries. This is discussed in the next chapter.










Transaction Codes and Idents. Listing
Date = 3 / 9 / 83
Code Identification Type
1 Management Salary C
2 Labor C
3 Fuel C
4 Repairs C
5 Maintenance C
6 Fertilizer/Lime C
7 Herbicide C
8 Supplemental Feed C
9 Mineral/Salt C
10 Veterinary/Medicine C
11 Utilities C
12 Telephone C
13 Land Rent C
14 Interest Expense C
15 Property Taxes C
16 FICA Taxes C
17 Blank C
18 Blank C
19 Blank C
20 Blank C
21 Interest Income I
22 Calf Sales I
23 Cull Cattle Sales I
24 Hay Sales I
25 Blank I
26 Blank I
27 Blank I
28 Blank I
29 Blank I
30 Head of Cattle Sold Q
31 Tons of Hay Sold Q

End of listing for transaction codes


Enterprise codes and idents. listing
Date = 3 / 9 / 83
Code Identification
1 Overhead
2 Beef Cattle
3 Hay Production
4 Equipment
5 Hay Production Sales
End of listing for enterprise codes

Figure 3-1. Sample of Transaction and
Enterprise Code Names.


/I~-~-------~--~----~------









CHAPTER 4


POSTING DAILY INCOME AND COST ENTRIES


The process of posting daily income and cost entries begins when you select
option 1 on the Transaction Menu, "Enter Records." The screen will ask for the
type of entry control desired. "Single Entry Control" is used if each check is to
be posted to only one transaction and enterprise. "Double Entry Control" is used
if checks are to be allocated to more than one transaction and enterprise. For
example, double entry control could be used to post 30% of a fertilizer check to
the hay enterprise and 70% to the beef enterprise. Single entry control will be
used in our example.

The program will now ask whether you want a printout of the records entered.
Usually a printed copy of each entry is preferred so the entries can be double
checked for correctness.

The program will also ask for the type of printer you are using:


Indicate the type of printer to be used:

1 = Quick Printer (80 Char/Line)
2 = Tractor Printer (132 Char/Line)

Enter 1 or 2? 1
\___________________


As a general rule select #1 if you are using 8 1/2" wide paper
using wider computer paper.

You are now ready to make the first data entry. Below is
taken from data on a check stub. A $3,000 entry dated 3/31/82
transaction "Management Salary" and enterprise "Overhead."


and #2 is you are


an example entry
is being posted to


Question on Screen Type

ENTER: DATE(MMDDYY)? 033182 then ENTER

ENTER: CHECK NO.? 101 then ENTER

ENTER: TRANSACTION CODE? 1 then ENTER
Note: Refer to Transaction Listing and locate
Management Salary.

ENTER: ENTERPRISE CODE? 1 then ENTER
Note: Refer to Enterprise Listing below
Transaction Listing and locate Overhead.

ENTER: AMOUNT? 3000 then ENTER

The following question is then shown: IF CURRENT DATA
IS CORRECT PRESS ENTER, ENTER ZAP TO REDO?
<_____________________________________










When all daily income and cost entries are made, type a date of zero (0) to
return to the Transaction Menu.

As the system is currently designed, entries for more than $10,000 are not
allowed. Very large entries can, however, be entered as a series of smaller
checks.


Suppose you suspect that a data entry is incorrect. If no printout
data entries is available, then select option 3 on the Transaction Menu.
selecting the type of printer to be used, the following will be shown on


of the
After
screen.


Let's assume that the incorrect transaction is in the Hay Enterprise. Then
you would select option 3, "List Records For An Enterprise," and proceed by enter-
ing the enterprise code for Hay Operation. A listing of all the data entries for
the enterprise will be printed (refer to Figure 4-1). The program automatically
returns to the Transaction Menu.

To change or correct a data entry, select 4, "Record Changes" from the Trans-
action Menu. The program will ask you to enter the record number of the entry you
wish to change. As soon as the changes to the data entries are made, type zero (0)
which will automatically return you to the Transaction Menu. Now we are ready to
look at the summary reports. They will be discussed in the next chapter.


POSSIBLE TRANSACTION LISTINGS:

1 = List All Records
2 = List Records For A Time Period
3 = List Records For An Enterprise
4 = List Records For A Transaction
5 = List Records For An Enterprise
And Transaction Combination
6 = Exit

ENTER NUMBER OF DESIRED LISTING? 3










Listing Generated on


Record
No.

6001

12001

1002

3002

8002

11002

17002

4003

10003

2004

4004

17004


Date

33182

33182

63082

63082

63082

63082

93082

93082

93082

123182

123182

21583


Check
No.

107

113

119

121

126

0

133

138

0

148

0

10102


Transaction/Enterprise

Fertilizer/Lime
Hay Production
Land Rent
Hay Production
Fertilizer/Lime
Hay Production
Herbicide
Hay Production
Land Rent
Hay Production
Tons of Hay Sold
Hay Production
Fertilizer/Lime
Hay Production
Land Rent
Hay Production
Tons of Hay Sold
Hay Production
Land Rent
Hay Production
Tons of Hay Sold
Hay Production
Maintenance
Hay Production


End of Listing


Figure 4-1. Example record listing for the Hay Enterprise.


Amount

$3,000.00

$210.00

$2,000.00

$125.00

$210.00

80.0

$4,000.00

$210.00

100.0

$210.00

80.0

$500.00


Item
Type

Cost

Cost

Cost

Cost

Cost

Quantity

Cost

Cost

Quantity

Cost

Quantity

Cost


3 / 9 / 83










CHAPTER 5


PRINTING TRANSACTION AND ENTERPRISE REPORTS

Selecting option 2 from the Transaction Menu will allow the summary reports to
be generated. The screen will show:


Indicate the type of summary report desired

1 = Transaction Report
2 = Enterprise Report
3 = Finished

Enter 1, 2 or 3? 2


Figure 1-1 shows a sample monthly transaction report. Note that the report lists
the transaction totals monthly and year-to-date, as well as the percentage the
monthly totals are of the year-to-date totals. At the bottom, the monthly totals
are summarized.

Now let's look at an enterprise summary report. Select option 2 for Enter-
prise Report. The question shows on the screen: Which medium of storage -- 1 =
Random Access Memory; 2 = Disk Storage. Most often option 1 will be used. Option
2 is used only when the amount of data to be processed is too large for the com-
puter's random access memory.

Suppose we want a report for the Beef Cattle enterprise (which is enterprise
#2), and that we want the costs calculated per pound of beef produced. Also assume
that 66,000 pounds of beef have been produced. The report is to be done for the
calendar year 1982.

The questions the computer asks, along with the answers needed to produce the
example enterprise report, are as follows:


ENTER BEGINNING AND ENDING ENTERPRISE FOR WHICH A REPORT IS DESIRED
(I.E., 1 THROUGH 5, ENTER 1,5) (MAX. CODE IS 4)

Type 2,2 for Beef Cattle Enterprise and Press ENTER.


Shown on the screen is:










Shown on the screen is:


ENTER TYPE OF UNITS (EX ACRES), MAX 12 CHARACTERS.?
Type LBS OF BEEF and Press ENTER.

ENTER TOTAL NUMBER OF UNITS ASSOCIATED WITH ENTERPRISE BEEF CATTLE?
Type 66000 and Press ENTER.


The program then asks you to verify the unit basis as follows:


OKAY:
TYPE OF UNITS = LBS OF BEEF
TOTAL OF UNITS = 66000
IF CORRECT PRESS ENTER, ENTER ZAP TO REDO?
PRESS ENTER


Now the time period for which the report is to summarize is requested on the
screen:


ENTER DESIRED TIME PERIOD:
BEGINNING MONTH, DAY, AND YEAR (MMDDYY)?
Type 010182 and Press ENTER.

ENDING MONTH, DAY, AND YEAR (MMDDYY)?
Type 123182 and Press ENTER.

IF DESIRED PERIOD IS CORRECT PRESS ENTER,
ENTER ZAP TO REDO?
PRESS ENTER


The analysis for the report begins by asking if a portion of the overhead
enterprise is to be allocated to the Beef Cattle Enterprise report. Suppose, in
addition to charging part of overhead to Beef Cattle, you also want to charge 40%
of the Hay Production enterprise and 60% of the equipment enterprise.

The following questions will appear on the screen:


DO YOU WISH TO ALLOCATE A PORTION OF THE TRANSACTION TOTALS ASSOCIATED
WITH ENTERPRISE OVERHEAD TO THIS ENTERPRISE (YES OR NO)?
Type YES and Press ENTER.









Next shown on screen is:


PLEASE INDICATE THE METHOD OF DETERMINING PERCENTAGES:
1 = SUPPLIED BY YOU FOR EACH TRANSACTION
2 = CALCULATED BY PROGRAM BASED ON SOME
TRANSACTION TOTAL
ENTER 1 OR 2? Type 1 and Press ENTER.


Shown on the screen is:


DO YOU WISH TO ALLOCATE A PERCENTAGE OF ANOTHER ENTERPRISE (YES OR NO)?
Type YES and Press ENTER.

HOW MANY ENTERPRISES DO YOU WISH TO ALLOCATE (MAX. = 20)?
Type 2 and Press ENTER.


You will now have a chance to enter the enterprise number of the
Equipment enterprises, along with the percentages of each you want to
Beef Cattle. The screen will verify your entries as follows:


Hay and
charge to


ENTERPRISE AND PERCENT
ALLOCATED
HAY PRODUCTION 40
IF CORRECT PRESS ENTER,


ENTERPRISE AND PERCENT
ALLOCATED
EQUIPMENT 60
ENTER ZAP TO REDO?


The computer now calculates the total overhead costs for each
Once this is done, each transaction is shown and the percentage of
charged to Beef Cattle is requested.


TRANSACTION TOTALS HAVE BEEN COMPUTED FOR ENTERPRISE
OVERHEAD. AS EACH TRANSACTION IS DISPLAYED INDICATE
WHETHER YOU WISH TO ALLOCATE A PORTION TO ENTERPRISE
BEEF CATTLE (Y = YES, N= NO).


MANAGEMENT SALARY?
Type Y and Press ENTER.


PERCENTAGE?
Type 70 and Press ENTER.


PERCENTAGE TO BE USED IS 70. IF CORRECT PRESS ENTER,
ENTER ZAP TO CHANGE PERCENTAGE?
Press ENTER.


Each of the overhead transactions totals is charged in a similar way.

Once the allocation process is completed, the program requests the time period
and destination (screen or printer) for the summary report of the Beef Cattle
enterprise. The following is shown on the screen:


transaction.
overhead to be










REPORTS MAY BE GENERATED BY
1 = MONTH
2 = TRANSACTION
3 = TIME PERIOD
ENTER NUMBER OF REPORT DESIRED, OR PRESS ENTER
TO TERMINATE?
Type 3 for Time Period and Press ENTER.

WHERE WOULD YOU LIKE OUTPUT DIRECTED?
ENTER:
1 = ONLY VIDEO
2 = BOTH VIDEO AND PRINTER
3 = ONLY PRINTER
Type 2 and Press ENTER.


How many transactions are to be included is now requested.


ENTER RANGE OF TRANSACTIONS DESIRED IN THIS
REPORT (I.E., 5 THROUGH 10, ENTER 5,10) (MAX.
CODE DEFINED IS 31)


For the example to get all 31 transactions you would type 1,31 and press ENTER.

A Beef Cattle Enterprise Summary similar to that of Figure 1-2 will now be
printed. If no costs for a particular transaction are charged to this enterprise,
the transaction name will not be printed in the report. Once the report is com-
plete, you will have a chance to either do more reports or return to the Trans-
action Menu.

The proceeding discussion has demonstrated the Transaction Menu Codes 1, 2, 3,
4 and 6. A brief discussion of the other four Transaction Menu Codes follows:


Code # and Name

5-List Identification:


7-Change Today's Date:


8-Clean-up:


9-Terminate:


Description

Prints a listing of all transaction and enterprise codes
and code names.

Allows the user to change the date shown on the upper
right corner of the screen.

Allows any or all transaction and enterprise data to be
removed from the data diskette.

Ends the transaction entry routine and returns the
program to the General Menu.


The above discussion completes the use of the Transaction Menu. In the next
chapter we will discuss the Capital Investment Menu (depreciation records).










CHAPTER 6


KEEPING CAPITAL INVESTMENT-DEPRECIATION RECORDS


A capital recovery cost, in the form of depreciation for income tax reporting
purposes, should be included in any management oriented record system. The MSU
farm record program has a capital investment sub-program to provide the necessary
depreciation schedule for management planning as well as income tax reporting.

As you recall, the General Menu has three options:


1 = Select Transaction Menu
2 = Select Capital Investment Menu
3 = Terminate This Session
J__ __ ___________^


Selecting a 2 will bring you to the Capital Investment Menu. There are seven
selection options on the Capital Investment Menu. Observe that the selections are
somewhat similar to the Transaction Menu.


CAPITAL INVESTMENT MENU
1 = ENTER INVESTMENT RECORDS
2 = GENERATE DEPRECIATION REPORT
3 = MAKE CHANGES TO INVESTMENT RECORDS
4 = LIST ALL CAPITAL INVESTMENTS
5 = CHANGE TODAY'S DATE
6 = CLEAN-UP
7 = TERMINATE
ENTER NUMBER OF DESIRED PROCEDURE? 1


The screen now shows the investment entry format and questions. On the top right
corner of the screen the following depreciation method codes are indicated.

SL = Straight Line: for all capital investments purchased prior to
1981.

DB = Declining Balance: for all capital investments purchased prior
to 1981.

SD = Sum of Year Digits: for all capital investments purchased prior
to 1981.

AA = ACRS: for all capital investments purchased in 1981 or after.

AC = Alternative ACRS: for all capital investments purchased in 1981
and after.

The sample printout below of a pick-up truck investment entry provides an ex-
ample of the questions asked the user. The answers supplied for this example are
underlined.






























When no
to return to


further capital asset entries are desired, enter an acquired
the Capital Investment Menu.


A disposal date of 0 should be used unless the item has actually been sold.
Do not use the disposal date entry for the date you expect to sell an item.

Selecting option 4 from the Capital Investment Menu allows a listing of the
capital investment entries. Figure 6-1 shows a sample listing of capital invest-
ment entries.

Correcting capital investment entries is accomplished by selecting option 3,
"Make Changes To Investment Records." Upon entering the investment record number
to be corrected, a listing of all items entered will be shown on the screen.


The program then asks to enter the item you wish to change. For the example,
item 1l--"Amount of Additional 1st Year Depreciation Taken"--was selected. Next


If finished enter an acquired date of zero
No. of records entered this session = 0
SL = Straight Line
DB = Declining Bal
SD = Sum of Digits
AA = ACRS
AC = Alternate ACRS
Current:
Date (MMYY): Acquired 182 Disposal "O"
Investment Name: Pick-up Truck Condition: New
Original Cost Less Trade-in Allowed: 7000
Basis of Trade-in: 1000 Salvage Value: 0
Life in Years: 5 Depreciation Method: AA
1st Yr, 20%: No
If current data is correct press enter, enter zap to redo?
^________________________________


date of 0


INVESTMENT RECORD NUMBER : 1
1. ACQUIRED DATE (MMYY) : 178
2. INVESTMENT NAME : TRACTOR 60 HP
3. ORIGINAL COST LESS TRADE-IN ALLOWED : 13500
4. BASIS OF TRADE-IN : 1500
5. SALVAGE VALUE : 1500
6. DEPRECIATION METHOD : SL
7. LIFE IN YEARS : 10
8. 1ST YR 20% : YES
9. DISPOSAL DATE (MMYY) : 0
10. CONDITION : NEW
11. AMOUNT OF 1ST YEAR TAKEN : 0
ENTER NUMBER OF ITEM YOU WISH TO CHANGE, OR ZERO
WHEN FINISHED? 11
ENTER: NEW AMOUNT OF 1ST YEAR TAKEN : ? 3000.








the new amount of first year depreciation is entered--$3,000. At this point, ad-
ditional items can be changed or entering "zero" will return the program to the
Main Menu.

IMPORTANT NOTE--When entering a pre-1980 capital investment where "Additional 1st
Year Depreciation" was taken, the above example correction is how the prior addi-
tional depreciation amount must be entered. Furthermore, entering a value of 0 for
the "Acquired Date" will remove a single investment record from the data file.

To generate a Depreciation Report, option 2 is selected from the Capital
Investment Menu. After requesting the type of printer, the following will be shown
on the screen. As before, example responses are underlined.


A depreciation schedule similar to that of Figure 1-3 will now be printed. i
soon as the entire depreciation report is printed, the program automatically re-
turns to the Capital Investment Menu.

The first four procedures of the Captial Investment Menu have been discussed
above. Below is a brief explanation of the other three procedures:


Code # and Name

5 Change Today's Date:


6 Clean-up:


7 Terminate:


Description

Allows the user to change the date shown on the
upper corner of the screen.

Allows all or some of the Capital Investment data
entries to be permanently removed from the data disk.

Ends the Capital Investment program option.


Selecting #7 automatically returns us to the General Menu.


Indicate Filing Status:
1 = Separate Return
2 = Joint Return
3 = Corporation or Partnership
?2

Enter a number from 1 through 12 which corresponds to the month
of the year which ends your tax year.? 12

Enter Desired Time Period:
Beginning Month and Year (MMYY)? 0182
Desired Period is Jan 82 through Dec 82.
If desired period is correct press enter, enter zap to redo.


General Menu
1 = Select Transaction Menu
2 = Select Capital Investment Menu
3 = Terminate this Session
Enter Appropriate Number? 3
\ )









With the completion of this demonstration and example exercise, type 3 for "Termi-
nate This Session" and Press ENTER. The computer now says:


SGood-bye
Have a Nice Day










List of Capital Investments
Generated on 12/31/82


Original Cost


Rec. Date Date
No. Acq. Dsp.


1 178 0


1001 178 0


2001 180 0


3001 180 0


2 180 0


1002 181 0


2002 182 0


3002 1282 0

SL = Straight Line
DB = Declining Bal
SD = Sum of Digits
AA = ACRS


Basis


Less of Salvage
Trade-in Trade-in Value

New Tractor 60 HP
$13,500.00 $1,500.00 $1,500.00

Used Trailer/Wagon
$2,500.00 $0.00 $250.00

New Batwing Mower
$7,000.00 $1,000.00 $0.00

New Mower Conditioner
$8,500.00 $0.00 $0.00

Used Hay Baler
$4,000.00 $0.00 $0.00

New Cattle Truck
$13,500.00 $1,500.00 $0.00

New Pick-up Truck
$7,000.00 $1,000.00 $0.00

New TRS-80 Model III
$3,500.00 $0.00 $0.00


Depr.
Meth.


SL


SL


DB


DB


DB


AA


AA


AA


Life


10


10


7


7


5


5


5


3


AC = Alternate ACRS
End of Listing

Figure 6-1. Sample Listing of Capital Investments.


First
Year
20%


$3,000.00


$0.00


$0.00


$0.00


$0.00


$0.00


$0.00


$0.00


r










CHAPTER 7


GENERATING A FINANCIAL STATEMENT

The MSU Farm Record System does not provide a financial statement for the farm
business. However, with a little creativeness, the information for compiling a
financial statement can be maintained.

Using a separate data diskette, select option 1 from the Main Menu. The
Transaction Menu will appear on the screen:


1 = Enter Records
2 = Summary Records
3 = Record Listings
4 = Record Changes
5 = List Identification
6 = Update Identifications
7 = Change Today's Date
8 = Clean-up
9 = Terminate


ENTER CODE OF DESIRED PROCEDURE? 6


As in setting up the record system, identifying the names for the financial
statement categories is the first step. Enter option 6, Update Identifications.
The transaction codes to be used in the financial statement correspond to "debits
and credits" to specific asset or liability identifications. For example, check-
book deposit would be a "credit" transaction and checkbook withdrawal would be a
"debit" transaction. The same procedure would be followed for all asset (savings,
depreciable assets, etc.) and liability (accounts payable, loans, etc.) account
names.

Along with the "debit" and "credit" entries, the asset and liability account
names must be entered. The enterprise codes would include names such as Checkbook
Balance, Savings Balance, Depreciable Assets, Loan-PCA, etc. Figure 7-1 presents a
sample listing for financial statement identifications. Observe that enterprise 1,
which is normally Overhead, has been renamed to Checkbook Balance.

To maintain the financial statement accounts, record entries would be made
similar to those discussed in Chapter 4. For example, the monthly transaction
report summary (Refer to Figure 1-1) would supply all the deductions or additions
to each financial statement account. Loan payments and receipts or equipment pur-
chases or sales would be deducted from or added to the respective account. Fur-
thermore, following the summary report procedures discussed in Chapter 5 provides
summary reports for each financial asset or liability account.











TRANSACTION CODES AND IDENTS. LISTING
DATE = 5 / 16 / 83
CODE IDENTIFICATION TYPE
1 CHECKBOOK DEPOSIT I
2 SAVINGS DEPOSIT I
3 C.D.'S DEPOSIT I
4 STOCKS & BONDS DEPOSIT I
5 ADD DEPRECIABLE ASSETS I
6 LAND ADDITIONS I
7 LOAN DEPOSITS I
8 BLANK I
9 BLANK I
10 BLANK I
11 CHECKBOOK WITHDRAWAL C
12 SAVINGS WITHDRAWAL C
13 C.D.'S WITHDRAWAL C
14 STOCKS & BONDS WITHDRAWAL C
15 REMOVE DEPRECIABLE ASSETS C
16 LAND REMOVALS C
17 PRINCIPAL PAYMENTS C
18 DEPRECIATION DEDUCTION C
END OF LISTING FOR TRANSACTION CODES
--------------------------------------x
ENTERPRISE CODES AND IDENTS. LISTING
DATE = 5 / 16 / 83
CODE IDENTIFICATION
1 CHECKBOOK BALANCE
2 SAVINGS BALANCE
3 C.D.'S BALANCE
4 STOCKS & BONDS
5 DEPRECIABLE ASSETS
6 LAND
7 TOTAL ASSETS
8 LOAN PCA
9 LOAN FLB
10 LOAN OTHER
11 LOAN OTHER
12 TOTAL LIABILITIES
END OF LISTING FOR ENTERPRISE CODES
--------------------------------------X

Figure 7-1. Sample of Transaction and
Enterprise Code Names for Financial
Statement Accounts.










CHAPTER 8


SUMMARY AND CONCLUSIONS

The Mississippi State University Farm Record System is intended to give the
farmer/farm manager who has access to a microcomputer the programs to evaluate cash
flows, compute limited tax information including depreciation on capital invest-
ments, and do partial budget analysis. There are several other farm record pro-
grams available both from private and public sources; this one has been presented
only as an example.

Transactions used in this program package generally relate to daily checkbook
or ledger entries. Enterprises refer to profit making ventures such as citrus,
beef cattle, vegetable crops, corn, soybeans, etc. Each transaction record is
defined for both a transaction and an enterprise. A separate set of information is
maintained for capital investment analysis.

Specific objectives of these microcomputer programs are:

1. Provide a hands-on way for farmers to record their cost and income trans-
actions as they occur during the year and to retain this information for future
processing.

2. Provide current cash flow reports describing the farm or firm business.
These reports may be generated for one or more months (examples: one month, quar-
terly, bi-yearly, yearly) by transactions. Summary reports giving costs, income or
physical unit reports for each transaction type can also be generated.

3. Identify cost areas. Cost information will be provided by single enter-
prises as well as over all enterprises. These costs may be broken down by months
or by transactions in order to identify each cost transaction and the date it oc-
curred.

4. Provide limited income tax information. Yearly summaries by transactions
should provide excellent income tax information. A capital investment depreciation
analysis will also be provided.

5. Facilitate record keeping on physical quantities. For example, monthly
flows of pounds of feed, gallons of fuel, pounds or gallons of fertilizer, hours of
labor, etc. would be available for inventory control or other purposes.

6. Provide partial budgeting information. While the reports developed by
this package should not be interpreted as comprehensive budgeting, they will pro-
vide profitability estimates for identified enterprises.

Keeping and using financial records contributes to the efficiency of any farm
enterprise. It is important to maintain data regularly on farm conditions and
production costs. Farm practices and elements of management become more meaningful
when responses are available for study and comparison. Keeping good farm records
is merely an exercise unless they are used regularly. These records are important
management tools and should be consulted before making changes in production prac-
tices that may affect returns. Microcomputers allow quick review and analysis of
your records for timely management decisions.









REFERENCES

Argo, M. A. and W. E. Killcreas. A Microcomputer Package for Farm Record Keeping,
Partial Budgeting, and Capital Investment Depreciation. AEC Tech. Publ. No.
22, Mississippi State University. January 1981.

Muraro, R. P. and L. Jackson. Citrus Grove Records. Extension Circular 428, IFAS,
University of Florida.

Osburn, D. D. and K. C. Schneeberger. Modern Agricultural Management. Reston
Publishing Co. 1978. 369 pp.




IFAS SOFTWARE ORDERING PROCEDURE

To receive an order form for the Mississippi State Farm Record System, as well
as other computer programs, write to the following address:


Farm Computer Support Group
c/o Dean John T. Woeste
Florida Cooperative Extension Service
1038 McCarty Hall
University of Florida
Gainesville, FL 32611










ACKNOWLEDGEMENT

Appreciation is extended to Mrs. Jane Wilson for typing the final draft.










































































This public document was promulgated at a cost of $510.24, or 51.1 cents per copy, to provide directions for use of
the Mississippi State University Farm Record System. 9-1M-83



COOPERATIVE EXTENSION SERVICE, UNIVERSITY OF FLORIDA, INSTITUTE OF FOOD AND AGRICULTURAL
SCIENCES, K. R. Tefertller, director, In cooperation with the United States Department of Agriculture, publishes this Infor-
matlon to further the purpose of the May 8 and June 30, 1914 Acts of Congress; and Is authorized to provide research, educa-
tional Information and other services only to Individuals and Institutions that function without regard to race, color, sex or
national origin. Single copies of Extension publications (excluding 4-H and Youth publications) are available free to Florida
residents from County Extension Offices. Information on bulk rates or copies for out-of-state purchasers Is available from
C. M. Hinton, Publications Distribution Canter, 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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