Operating Expense, Pages 9-10

Pages 9 and 10 relate only to those students that have entrepreneurship SAEPs.

Definition of “Operating Expense”

Click pages 9 & 10, Operating Expense, in the blue banner window to get this page.

Click “Select an Enterprise.” If you entered an enterprise on page 1, then it is listed here. Select the enterprise.

You are now at this screen. Enter the date you bought the item, what you bought, and how much of that item you bought. Enter the date. For example: 08/04 Enter what you bought. For example: Market Hog or Feed Enter the amount. For example: 1 head or 1 bag

Now, you must decide where to enter the cost of the item. Five column headings describe different costs. Inventory Purchased for Resale Non-Cash Operating (Other) Cash Operating (Other) Cash Operating (Feed) Non-Cash Operating (Feed)

Definition of “Inventory Purchased for Resale” If you purchased a pig to raise and then exhibit at the county livestock show, then you would list the price of the pig under this title. The same goes for any animal purchased for this reason. This also applies to animals that are purchased to be fed and then sold to a feedlot.

Definition of “Cash Operating (Feed)” If you purchased feed for your market animal or for your herd and paid CASH, then you will list the price of the feed under this title.

Definition of “Non-Cash Operating (Feed)” If you rent a pasture from your parents/relative/neighbor for your livestock to graze in and don’t pay cash for it, but rather have a trade agreement set up between yourself and the owner of the pasture, then you would enter the rent price in this column. This also applies to any other type of trade or exchange system set up between yourself and a second party where you receive the feed for your livestock.

Definition of “Cash Operating (Other)” If you had to purchase anything else to be used with your animal(s) and paid CASH for it, then the price of the item is listed in this column. This includes things like wormer, other medication, vet bills, entry fees for livestock shows, and pen rent.

Definition of “Non-Cash Operating (Other)” If you purchased anything else other than feed to be used with your animal(s) such as the items listed on the previous slide, but did not pay cash because of an agreement you have set up with the provider, then the price is listed in this column.

Here’s an example. The market barrow will later be sold. The feed and wormer were both bought at the feed store and paid for with cash. The hay was given to you from your uncle in exchange for labor. The veterinarian gave the penicillin shot free of charge.

The “Total Value” and “Totals” are computer generated. You do not have to calculate these.

The online system allows you to enter five rows at a time. Click the “Update Operating Expenses” button when you have finished or to get more blank rows.

Additional Help If you need more help, you can find instructions for each page at the top of the page. It is in blue text and says “section instructions”. Clicking on it will get you another window of information to help you finish the page. If you still need help, contact your agriscience teacher. Definitions of key words used in this record book are in the Glossary, pages