CALCULATING NET FARM INCOME

 

There are 2 methods for calculating net farm income:  cash accounting AND  accrual accounting.  It is important to understand the differences and how to calculate both.  Build the following equations by filling in the blanks.  Some terms will be used more than once.

 

Use the following terms for calculating net farm income:

  Gross cash farm income Gross cash farm revenues
  Cash farm expense Inventory adjustments
  Net cash farm income Gross farm revenues
  Depreciation Cash farm expenses
  Net farm income from operations Depreciation
  Gain/loss on sale of farm capital assets Non-cash expenses adjustments
  Net farm income Net farm income from operations
  Gain/loss on sale of farm capital assets Net farm income

 

  Work to be Submitted

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