Net Worth

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Net Worth

• Animal Science I and II

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• How many people would like to have the following
• Job
• Car
• House
• The following is one step in getting these things

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Asset

• Something tangible of value that a person owns.
• There are 2 types of assets
• Current Assets
• Non- Current Assets

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Current Assets

• Items quickly converted to cash, or sold within
  12 months.
• Cash
• Checking
• Savings
• Livestock
• Feed
• If a business has 5,000 cash on hand, and
  20,000 in checking. What are their current
  assets

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Non-Current Assets

• Items that are useful for more than 12 months
• Land
• Equipment
• Machinery
• Breeding Livestock
• If a swine farm has 100,000 in land, and
  200,000 in equipment and housing. What is their
  Non-Current Asset total?

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Current Assets Non-Current Assets Total Assets

• If a turkey farm has 5,000 cash on hand, 20,000
  in checking, and 60,000 in land. What are their
  Total Assets?

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Liability

• Debts Something that you owe.
• There are 2 types on liabilities
• Current Liabilities
• Non-Current Liabilities

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Current Liability

• Debts that are due within 12 months.
• Fertilizer Bill
• Electricity Bill
• Water Bill
• Feed Bill
• Tractor payments due this year
• Mortgage payments due this year
• If a cow farmer has a 500 feed bill, a 300
  electricity bill, a 350 tractor payment, and a
  1,000 mortgage due this month. What are their
  Current Liabilities for this month?

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Non-Current Liability

• Debts not due this year.
• Mortgages (minus this years payments)
• Tractor payments
• Equipment loans
• If the same cow farmer has 120,000 left on his
  mortgage after this year, and 5,000 left on his
  tractor loan this year. What are their
  Non-Current Liabilities?

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Current Liabilities Non-Current Liabilities
Total Liabilities

• If a cow farmer has a 500 feed bill, a 300
  electricity bill, a 350 tractor payment, and a
  1,000 mortgage due this month. If the same cow
  farmer has 120,000 left on his mortgage after
  this year, and 5,000 left on his tractor loan
  this year. What are their Total Liabilities?

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Inventory

• List of items owned by a business
• Items usually have value
• Usually lists beginning value and current value.
• Two types of inventory Depreciable and
  Non-Depreciable

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Depreciable Inventory

• Items that are useful for more than 12 months.
• Loose value over time due to
• Age
• Use
• Wear
• Out-of-Date due to new technology
• Land is NOT depreciable!!

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Non-Depreciable Inventory

• Items that will be used up or sold within 12
  months.
• Feed
• Supplies
• Livestock
• Medicine

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Total Assets Total Liabilities Net Worth

• Total Assets 250,000 Total Liabilities
  150,000. What is this farms Net Worth?
• Total Assets 300,000 Total Liabilities
  150,000. What is this farms Net Worth?

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