Maintaining Records Animal Science I

Terms Asset Something of value you own Liability Debts Net Worth = total assets – total liabilities

Terms Inventory An itemized list of things owned Includes beginning and depreciated value

Assets Two kinds of assets Current Items that can quickly be converted to cash or that will be sold in the next 12 months Ex. Cash, checking, savings, stocks, non- depreciable inventory (crops, livestock)

Assets Non-current Have useful life of more than one year Land, machinery, breeding livestock

Liabilities Two types Current Due in the next 12 months Ex. Monthly payments, mortgage, bills Non-Current Due after the next 12 months Mortgage payments left after this year

Net-Worth DO THE MATH Net-worth = total assets – total liabilities Total Assets = current assets + non-current assets Total Liabilities = current liab. + non-current liab.

Inventory Non-depreciable Items that will be sold or used in next 12 months Ex. Feed, supplies, animals to be sold

Inventory Depreciable Items with useful life of more than one year and lose value Reasons for decline in value Age, wear, out-of-date due to technology. LAND IS NOT DEPRECIABLE

What is it? Bags of Feed Breeding Horses Cars Land Next 3 months house payment Savings Tractor and Equipment Current Non-Dep. Asset N-C, Dep., Asset N-C, Non-Dep, Asset Current, Liability Current, Non-Dep. Asset N-C, Dep., Asset