Inventories of Current Assets and NonCurrent Assets Pages 19

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Working with the AgFFA Record Book
A Resource for Online Users
Developed by Kristie Weller, Undergraduate
Technician, IMS-TAMU Reviewed by Larry Ermis,
Curriculum Specialist, IMS-TAMU
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Inventories of Current AssetsPage 19
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Page 19 is completed on beginning and ending
dates of the record book.
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Page 19 is for entering opening and closing
inventories of Current Assets.
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What is an ASSET?
Any item you own that has value is an asset.
For your record book, an asset is any part of
the business necessary to conduct the SAEP. Any
asset on hand at the end of the year AND placed
in the closing inventory is considered
PRODUCTIVELY INVESTED.
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Definition of Current Asset
Examples -Market pig for pork
production. -Angus steer for beef production.
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What is an INVENTORY?

• Answer An inventory is an itemized list of all
  assets on hand on a specific date.
• A normal inventory usually includes a description
  of the item(s) on hand and the quantity of each
  item.
• For the purpose of a January-December record
  book
• List your SAEP assets on hand at the beginning
  and then at the end of the record book year.
• Use two dates January 1 and December 31 of
  each year. Beginning students use date
  entered ag class.

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Sample Inventory(Using Microsoft Excel)
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Non-Depreciable Asset

• An example of a NON-DEPRECIABLE item is market
  livestock. Market livestock, such as market
  pigs, increase in value. You buy feed for them
  and then eventually sell them. Because you are
  constantly placing more money into the animals,
  their value increases. In fact, when you sell
  the animals, you expect to make a cash profit on
  them.

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Go to page 19, click Select a Schedule, and
review the first FOUR schedules. Current assets
will fit into these schedules.
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Items to Enter in each Schedule

• 1st Select the enterprise to which the
  inventory asset pertains.
• 2nd Provide a description of the asset.
• 3rd For the Beginning Date or Ending Date
  column, enter the quantity and unit.
• 4th Enter the value of the asset at the
  inventory date.

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Example for Schedule A
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Beginning Date versus Ending Date

• If you have an asset on hand at the beginning of
  the year, then the value and quantity go under
  the Beginning Date.
• If you obtained the asset sometime during the
  year and it is on hand at the end of the year,
  then enter the closing value and quantity under
  Ending Date.

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Beginning Date versus Ending Date

• EXAMPLE It is December 31 and you are feeding a
  market hog that you plan to exhibit in late
  January. List the hog as an asset under
  Investment in raised market livestock or
  poultry in the columns for Ending Date. That
  hog will also be listed in the Beginning Date
  columns in the next record book.

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Beginning Date versus Ending Date

• For first year students, the beginning date may
  be the first day they enroll in the ag class.
• For graduating students or students leaving the
  agriculture program, the ending date may be the
  last day they are enrolled in the ag class.

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The first schedule is for Harvested and Growing
Crops.
Example You harvested a
corn crop earlier, but stored the corn for sale
in January. The corn and its market value are
entered on the Ending Date columns. Because the
asset was not on hand on the first day of the
year, nothing is entered in the Beginning Date
columns.
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Schedule B is for feed, seed, fertilizer,
chemicals, supplies, prepaid expenses, and other
current assets.
Example You have 15 gallons of
fertilizer that was not used on the corn field.
You will keep the fertilizer for use next year.
The fertilizer on hand and the price you paid
for it are entered on the Ending Date columns.
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The third schedule is for merchandise, crops, and
livestock purchased for resale.
Example You
purchased a market barrow for exhibit and sale.
Because you were told pigs grow better with other
pigs, you bought another pig (gilt) to accompany
the market barrow. After the barrow sold in
December, the companion gilt was held to be sold
in January to its original owner. The ending
value of the gilt is the price you paid for her
plus the value of the feed and other items placed
in her.
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Schedule D is for raised market livestock and
poultry.
Example You bought
a barrow in September and plan to show it at the
county youth show at the end of January. To the
price paid for the pig, add the cost of feed,
rent, and medicine put into the pig and enter
that value at the Ending Date. That same value
will go to the Beginning Date in the next record
book.
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If you have questions about inventories . . .

• . . . always check the section instructions if
  you are confused about what needs to be entered.
• . . . ask your agriscience teacher for help.