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Show NEED OF YEARLY INVENTORY Young Farmer Should Keep Detailed Record of Farm Investments to Show Profit and Loss. The young farmer wbo is endeavoring endeavor-ing to build up a more efficient and profitable business seldom retains much cash. When money is received he buys a new implement, another animal, improves a building, or makes payments on bills for things bought on credit. During the course of the year he may receive and pay out large sums of money, leaving almost no cash at the end of the year. The annual returns re-turns may seem to have been only a fair living for himself and family, whereas the farm business may have turned a good profit, which was in vested from month to month. Hence it is important for the farmer's guidance guid-ance and encouragement that he make aji annual inventory ci his farm in vestments. This inventory should be a detailed list, with values, of everything every-thing used in the far re business, including in-cluding land, buildings, I've stock, machinery ma-chinery and tools, produce for feed or sale, supplies, bills receivable, and cash; also a list of all accounts and bills owing. The difference between the total assets and debts shows the net farm worth. A study of two successive inventories inven-tories of a farm in New York state illustrates il-lustrates how one young farmer on 100 -acres prospered regardless of the fact that he had almost no cash at the end of the year. The total assets at the beginning of the year amounted to $13,090 and to $13,400 at the end of the same year, an increase of $310. The increased lnvesraent in live stock, machinery and tools,- and more produce held for sale amounted tc $1,073, but this was partially offset b the cash decrease of $7G3. The farrc indebtedness was also reduced by $253, thus making a total increase in net worth to the farm business of $563. The inventory values covered all depreciations and increases in value, so that this $563 was net increase in-crease in the value of the farm investment. invest-ment. It means that this sum was saved from the year's business after all farm expenses had been paid, including in-cluding interest on borrowed money and all living expenses. The amount of cash at the end of toe year, $133, proved to.be no indication of the success suc-cess of the year's business. |