Record Keeping B Agribusiness Farmers and Land Record Keeping ...

Instructions for Filling out the Income StatementAn income statement may be prepared for the farm as a unit or for individual enterprises.The procedures are basically the same, although two farm statements may differ considerablybecause of different objectives and organization. There are essentially three parts in thisincome statement, revenue, expenses and non-farm income. The other parts are the totalgross farm revenue, total expenses, net farm income and net income.Specific Instructions1. Transfer From….This appears in the first column of the table and tells you where to getsome of the items listed in the income statement.2. Revenue….The revenue items in the Table are self explanatory. All revenue yieldingitems should be included. Those not listed should be grouped as “Other Farm Income.”3. Total Gross Farm Revenue…Add the dollar amounts listed under “Revenue” and enterin the space provided. The year of operation should be specified as indicated.4. Expenses….Some items of expenses are listed here. Enter expenses againstcorresponding items. Again, farm expenses omitted should be included as “Other FarmExpenses.”5. Total Expenses… Add the dollar amount under “Expenses” and enter in the spaceprovided.6. Net Farm Income… To obtain this, subtract total expenses from total gross farmrevenue and enter as specified.7. Non-Farm Income…Some non-farm income sources are listed here and include wagesand tips. All other non-farm income should be entered in the space provided. Add theseentries together to get total non-farm income. Next, enter income before tax, your totalincome tax expense, and family living expenses. Add together total non-farm incomeexpenses and family living expenses to get your total non-farm expense.8. Net income…Enter the difference between total non-farm income and total non-farmexpense obtained in number 7. Get this by subtracting total non-farm expense from totalnon-farm income.- 105 -