Contents

• Introduction
• Definitions
• Farm Record Keeping
• Financial Statements
  • Net Worth Statement or Balance Sheet
  • Balance Sheet Categories
    • Current Assets
    • Intermediate Assets
    • Fixed Assets
    • Current Liabilities
    • Intermediate Liabilities
    • Long Term Liabilities
    • Owner's or Shareholder's Equity
  • Balance Sheet and Net Worth Statement
    • Balance Sheet
    • Net Worth Statement
  • Income Statement
  • Converting From Cash to a Simplified Accrual Income Statement
  • Statement of Changes in Financial Position
  • Projected Cash Flow Statement
  • Debt Servicing Capacity
  • Eleven Questions to Ask When Borrowing Money
• The Five C's of Credit
• Business Plan
  • Advantages of Having a Business Plan
  • Steps to Prepare a Business Plan
  • Prepare the plan using information from:
  • Include these elements in the business plan:
• Ratios
  • Analyzing Financial Statements Using Ratios
  • Categorization of Ratios
  1. Liquidity
     • Current Ratio & Working Capital
     • Working Capital As A Percentage Of Expenses
     • Debt Structure Ratio
  2. Financial Efficiency
     • Contribution Ratio
     • Net Operating Profit Ratio
  3. Solvency
     • Debt to Equity (Leverage) Ratio
     • Debt Servicing Ratio
  4. Profitability
     • Asset or Capital Turnover
     • Return on Assets Ratio
     • Return on Equity Ratio
     • Lifestyle Ratio
     • Diagnosing Farm Profitability Problems
  • Procedure for Diagnosing Farm Profitability Problems
• Security Instruments
  • An Introduction to Collateral Security
  • Types of Security Assets
  • Registering of Security
  • Mortgage
  • Caveat
  • General Security Agreement (G.S.A.)
  • Specific Security Agreement
  • Promissory Note
  • Trade Credit and Security
  • Assignment of Interest (Proceeds)
  • Deferred Grain Tickets
  • Conditional Sales Contract
  • Debenture
• Advance Ratios / Down Payments
• Alternative Forms of Financing
  • Leasing
  • Sources of Financing
  • Cash Advances
• Taxation - Cash Method of Accounting
  • Other Special Considerations in Calculating a Farm's Taxable Income
• Additional Internet Links
• Critical Issues Checklist At A Glance
  • Effectiveness of Farm Records
  • Financial Statements

Appendix

• IC-86-6 - Basic Herds
• IT-156R - Income Tax Act: Feedlot Operators
• IT-184R - Income Tax Act: Deferred Cash Purchase Tickets Issued for Grain
• IT-200 - Income Tax Act: Surface Rentals and Farming Operations
• IT-373R - Income Tax Act: Farm Woodlots and Tree Farms
• IT-425 - Income Tax Act: Miscellaneous Farm Income
• IT-485 - Income Tax Act: Cost of Clearing or Levelling Land
• IT-526 - Income Tax Act: Cash Method Inventory Adjustments
• Taxation Series: Part Time Farming
• Cost of Raising A Child (PDF)
  • English
  • Française
• Family Living Costs (PDF)
  • English
  • Française
• Taxation Series - Miscellaneous Tax Deductions (PDF)
• Taxation - Alternative Minimum Tax (PDF)
• Land Expansion: Establishing Values and Options (external link)
• Financial Programs for Manitoba Farmers (external link)
• Taxation Series: Part-Time Farming (external link)