1. 16 Lesson Plans to Prepare Small and Mid-scale Farmers to Enter Food Hubs, Groceries, Restaurants and Cooperatives

2. test Unit 3.1 Reviewing Financial Position of Business This powerpoint presentation is a companion resource to the ‘Baskets to Pallets Teaching Manual’ available at smallfarms.cornell.edu Please see ‘Module 3 – Business Management’ for additional teaching resources.smallfarms.cornell.edu

4. Financial Statements Balance Sheet Income Statement Cash Flow Liquidity Solvency Profitability Repayment Liquidity

5. Financial Statements Cash flow statement Cash income Cash expenses Income statement Cash income Cash expenses Changes in assets Changes in liabilities Net farm income, accrual adjusted (profit) Balance sheet Assets Liabilities Net worth (owner equity) Source: Damona Doye, Oklahoma State University

6. Financial Ratios Help to assess profitability debt capacity financial risk Ratios developed for each financial measure Picture source: http://bit.ly/1QOZ37o

7. What is Needed? Asset and liability values Scheduled principal and interest payments Gross farm revenue Net farm income Interest expense Depreciation expense Nonfarm income, family living expenses, and income tax payments Unpaid labor Value of Labor and Management https://www.google.com/imgres?imgurl=https://upload.wikimedia.org/wikipedia/commons/b/b3/Basic_DIY_Tools.jpg&imgrefurl=https://ja.wikipedia.org/wiki/DIY&h=300&w=400&tbnid=aQ AUqfMVrHgjxM:&docid=e0fg4LSmv96R3M&ei=Bk--VsnpO8vW-QHypbKIBQ&tbm=isch&ved=0ahUKEwjJhPGKlvPKAhVLaz4KHfKSDFEQMwhSKCcwJw

8. Help S & S Farm Is a vegetable farm Have shared Schedule F Beginning and Ending Asset Values Total Assets Total Liabilities Machinery Values Farm Interest Payments for 2015 Value of Labor and Management