SAMPLE Farm 2019 Analysis Income Statement Income Quantity Price Amount Expense Amount Vegetables, csa - $ - /$ 36,693 Seed 1,779 Vegetables, Farmers Market - $ - /$ 3,549 Fertilizer 1,842 Vegetables, Roadside Stand - $ - /$ 11,110 Packaging and supplies 416 Vegetables, Wholesale - $ - /$ 2,047 Crop Supplies 2,240 Other government payments 1,014 Crop Consultants 218 Other farm income 5,879 Crop Marketing 1,019 Crop Auto and Travel Expense 4,132 Interest 6,021 Fuel & oil 2,826 Repairs 2,324 Hired labor 890 Real estate taxes 684 Farm insurance 1,591 Utilities 3,258 Dues & professional fees 370 Organic certification 814 Purchase of resale items 529 Miscellaneous 580 Gross cash income 60,292 Total cash expense 31,533 Net cash income 28,759 Beginning Ending Inventory Inventory Changes Inventory Purchases Sales Inventory Change Prepaids and supplies 2,000 1,906 -94 Growing crops 250 120 -130 Accounts receivable 220 - -220 Other current assets 300 300 - Crops and feed 2,220 2,470 250 Other assets 46,745 - - 44,408 -2,337 Total inventory change -2,531 Net operating profit 26,228 Beginning Ending Depreciation Inventory Purchases Sales Inventory Depreciation Machinery and equipment 19,065 385 - 17,544 -1,907 Titled vehicles - - - - - Buildings and improvement 69,053 6,493 - 71,769 -3,777 Total depreciation -5,684 Net farm income 20,544 Profitability Measures Cost Market Statement of Owner's Equity (A) Net farm income from operations 20,544 22,286 (a) Beginning net worth 420,850 Rate of return on assets (E/F) 9.5 % 8.3 % Rate of return on equity (G/H) 11.9 % 9.1 % Net farm income 20,544 Operating profit margin (E/I) 28.8 % 31.9 % Personal income (+) 60,446 Asset turnover rate (I/F) 32.9 % 26.0 % Family living expense (-) 58,511 EBITDA 32,249 33,991 Income taxes accrued (-) - Change in personal assets (+) 55,844 (B) Change in market valuation - 1,742 Change in nonfarm accounts payable (+) - (C) Interest expense 6,021 6,021 (b) Total change in retained earnings (=) 78,323 (D) Value of unpaid oper labor & mgmt 10,000 10,000 (E) Return on farm assets (A+C-D) 16,565 18,307 Change in market value of capital assets 2,082 (F) Average farm assets 174,462 220,866 (d) Total change in market valuation = 2,082 (G) Return on farm equity (A-D) 10,544 12,286 (H) Average farm net worth 88,544 134,948 (e) Total change in net worth (b+d) 80,405 (I) Value of farm production 57,456 57,456 Ending net worth 501,255 Liquidity Measures Begin End Statement of Cash Flows (J) Current assets 14,108 6,233 (f) Beginning cash balance (farm & personal) 12,038 (K) Current liabilities 10,132 9,691 Gross cash farm income 60,292 Current ratio (J/K) 1.39 0.64 Cash farm expenses (-) 31,533 Working capital (J-K) 3,976 -3,458 (g) Cash provided by operating activities (=) 28,759 Change in working capital -7,434 Working capital to gross revenues 6.9 % -6.0 % Sale of capital assets - Purchase of machinery and equipment (-) 385 Purchase of farm buildings (-) 6,493 Solvency Measures (Market) Begin End Purchase of personal assets (-) 22,117 (h) Cash provided by investing activities (=) -28,995 (L) Total assets 511,824 582,118 (M) Total liabilities 90,974 80,863 Money borrowed - Net worth (L-M) 420,850 501,255 Principal payments (-) 10,111 Net worth change 80,405 Personal income (+) 60,446 Family living expense (-) 58,511 Current debt to assets (K/J) 72 % 155 % Income taxes paid (-) - Intermediate debt to assets - % - % (i) Cash provided by financing activities (=) -8,176 Long term debt to assets 65 % 55 % Total debt to assets ratio (M/L) 18 % 14 % Net change in cash (g+h+i) -8,412 Ending cash balance (farm and personal) 3,626 Repayment Capacity Net farm income from operations 20,544 Depreciation (+) 5,684 Personal income (+) 60,446 Family living expense (-) 58,511 Income taxes accrued (-) - Interest on term debt (+) 5,984 (N) Capital debt repayment capacity (=) 34,147 (O) Scheduled term debt payments 16,116 (P) Capital debt repayment margin (N-O) 18,031 (Q) Cash replacement allowance 2,693 Replacement margin (P-Q) 15,338 Term debt coverage ratio (N/O) 2.12 Replacement coverage ratio (N/O+Q) 1.82 Crop Summary Total acres owned 20 Total crop acres 5 Crop acres owned 5 Crop acres cash rented - Crop acres share rented - Percent crop acres owned 100 % Machinery investment/crop acre (cost) 3,979 Machinery investment/crop acre (market) 5,608 Crop Yields Acres Yield Vegetables, Assorted 4.6 12,043.3 $ Labor Summary Total unpaid labor hours 2,500 Total hired labor hours 80 Total farm labor hours 2,580 Value of farm production per hour 22.27 Net farm income per unpaid hour 8.22 Average hourly hired labor wage 11.13