A Financial Data Summary and Analysis System for the Farm Supply Firm

Transcription

1 University of ebraska Lincoln of ebraska Lincoln OpenAccess* Master's Theses from the University of ebraskalincoln Libraries at University of ebraskalincoln A Financial Data Smmary and Analysis System for the Farm Spply Firm Marice D. Kniep University of ebraskalincoln Follow this and additional works at: Part of the Agribsiness Commons, and the Agricltral Economics Commons Kniep, Marice D., "A Financial Data Smmary and Analysis System for the Farm Spply Firm" (1974). OpenAccess* Master's Theses from the University of ebraskalincoln This Thesis is broght to yo for free and open access by the Libraries at University of ebraskalincoln at DigitalCommons@University of ebraska Lincoln. t has been accepted for inclsion in OpenAccess* Master's Theses from the University of ebraskalincoln by an athorized administrator of DigitalCommons@University of ebraska Lincoln.

2 A FACAL DATA SUMMARY AD AALYSS SYSTEM FOR THE FARM SUPPLY FRM by Marice D. Kniep A THESS Presented to the Faclty of The Gradate College in the University of ebraska n Partial Flfillment of Reqirements For the Degree of Master of Science Department of Agricltral Economics Under the Spervision of Associate Professor P. w. Lytle Lincoln, ebraska May, 1974

3 ACKOWLEDGEMET The athor wishes to thank the members of his thesis committee, Dr. P. w. Lytle, Dr. Michael S. Trner, Dr. Philip A. Henderson, and Dr. Thomas L. Thompson, for their gidance and helpfl sggestions throghot this stdy. The athor wishes to express his sincere appreciation to his advisor, Dr. P. w. Lytle, for his advice, gidance, and consel throgh ot the Masters program. n1e athor wishes to thank the Department of Agricltral Economics for the financial assistance provided and the opportnity to contine my edcation. A special thanks is extended to my sister, Verona, for giving p her evenings to type on my thesis. linally, wold like to thank my wife, Connie, for her patience, encoragement, and nderstanding. M.D.K. ii

4 TABLE OF COTETS CHAPTER... V. TRODUCTO TO THE PROBLEM PROBLEM DETFCATO OBJECTVES LTERATURE REVEW METHODOLOGY TRODUCTO STADARDZED PUT STADARDZED OUTPUT COMPUTER PROCESSG COTUG FACAL AALYSS COMPARSO TRODUCTO EARGS STATEMET BALACE SHEET RATO AALYSS DEPARTMETAL AALYSS DETAL BY TEM SUMMARY COCLUSOS RECOMMEDATOS FOR FURnER RESEARCH PAGE SELECTED REFERECES APPEDX A APPEDX B APPEDX C APPEDX D APPEDX E APPEDX F APPEDX G APPEDX H LST OF FGURES iv iii

5 LST OF FGURES FGURE Chart of Acconts For The Financial Data Smmary and Analysis System. Diagram of otpt items in individalreglar (Option ) and composite grop average reglar (Option ) reports from the Financial Data Smmary and Analysis System. Diagram of otpt items in individaldetail (Option ) and composite grop average detail (Option V) reports from the Financial Data Smmary and Analysis System. PAGE iv

6 CHAPTER 1 TRODUCTO TO THE PROBLEM To acqire and maintain clientele a farm spply firm, large or small, cooperative or privately owned, mst provide needed goods and services of appropriate qality at competitive prices. How well this is done depends on the technical and pricing efficiency of the firm. Managerial decisions affect directly the firm's efficiency. The capable manager knows his firm inclding his employees, his market inclding his cstomers and competitors, and himself. He mst plan, organize, direct, and control the activities of the firm so that the objectives of the bsiness, be they profit maximization, service to the cstomers, growth, or whatever are flfilled. Decision making is the job of the manager. The qality of his decisions is based, in part, on the availability of accrate, appropriate information. The acconting reports are an important sorce of infor mation sed by managers to measre performance and facilitate planning. PROBLEM DETFCATO One of the major challenges in managing a bsiness is sing effectively an adeqate set of well developed. and maintained acconting records. Poorly designed and/or maintained records will render them seless in control of operations and in longer term planning. Acconting records can serve several fnctions. Managers recognize that records are necessary to satisfy the nternal Revene Service, to

7 provide a base to determine patronage refnds, and to provide members 2 with annal reports. These are legimate reasons for maintaining a record system. However, these reasons overlook the se of acconting records as a management tool. Properly developed acconting records can provide management with a continos reading of the financial health of the firm. Continos monitoring of a firm's financial stats can provide signals to management of operational or pricing problems in the bsiness. Corrective action to these signals by management can improve the profit ability of the firm. Managers of farm spply firms often fnction in several time consming roles. These roles can involve daily operational isses that often take precedence over interpreting and analyzing financial data. n addition, these data may seem ndefined, nstrctred, and nrelated to the firm's needs. As a reslt, management may find it convenient not to analyze these acconting records to determine the financial condition of the firm. The immediate need in financial management of farm spply firms is a simplified, standardized, and sable financial information system. The system mst be capable of making financial information available to management in a timely and orderly fashion so as to encorage evalation of the past performance of the firm and to facilitate planning of ftre operations.

8 3 OBJECTVES The general objective of this stdy is to enhance the existing capabilities of a financial information system for farm spply firms. The standardized data will be sefl to managers in reviewing and comparing the historical performance and in planning changes in the organization and activities of their firm. Specific steps to flfill the general objective are: 1) Review the financial information system for farm spply firms developed by the University of Missori and make revisions and additions to the basic compter program. 2) Develop a coding form for inpt data that is compatible With farm spply firms' acconting records and the revised compterized system. 3) Develop a pblication introdcing the financial data smmary and analysis system to owners and managers of farm spply firms, explaining the system's capabilities and advantages, and describing how to prepare inpt data for processing. 4) Develop a pblication explaining the cempter otpt from the financial data smmary and analysis system and how the otpt shold be interpreted by each manager. 5) Develop forms for recording the compter otpt from the financial smmary and analysis system to be sed in trend analysis by each manager.

9 4 LTERATURE REVEW First ational City Bank!/ n 1966 First ational City Bank of ew York (Citibank) developed a simple compter program for forecasting cash flows of its corporate cstomers. This program has since evolved into a system of compter models for forecasting, financial planning, acqisition analysis, prodct planning, and trade credit review. Citibank's system, known as COMMAD (CompterAssisted Management Decision), provides an acconting and analytical framework into which the corporate manager injects his jdgements abot each component of the company's operation. The compter then translates the corporate manager's policies and jdgements into a balance sheet, income statement, cash flow statement, and ratio and capitalization analysis. COMMAD now consists of five compter programs: 1) PASTFLOW is a compter program which calclates financial ratios for p to six time periods, sch as months, qarters, or years. The program is sed to detect trends in balance sheet and income statement relationships which the corporation may wish to extrapolate into the ftre. 2) CASHPLA is a compter program which prodces a forecast of p to eight financial statements and reports for each of the next five months, qarters, or years. The available reports inclde an income atate!/ This discssion is based on a brochre, "Where Will Yor Company Be Five Years From ow?", from the Corporate Financial Advisory Department, First ational City Bank, ew York, ew York.

10 5 ment, balance sheet, ratio analysis, sorces and ses of fnds statement, reconciliation of working capital, capitilization analysis, cash flow statement, and a list of assmptions that prodced the forecast. 3) EDT is a compter program which checks the assmptions entered into the forecasting program (CASHPLA) for mechanical consistency and correct ness. For example, a dividend payot policy might be inconsistent with an estimate of dividends per share. 4) PRODPLA is a compter program which enables the financial staff to make forecasts by prodct line. T]ae,analyst inpts the price, volme, and fixed and variable costs per nit. The program measres the impact of a change in prodct mix, volme, price, or nit cost on total corporate eaings or cash flow. 5) MERGE is a compter program which consolidates any nmber of divisional or mlticompany CASHPLA or PRODPLA forecasts on a "prchase" or "pooling" basis. The program is sed for acqisition analysis and divisional planning.

11 6 Harris Trst and Savings Ban/ Harris Trst and Savings Bank of Chicago offers a Capital Planning Service designed to assist top manage ment in determining the amont, type, and timing of ftre longterm capital needs. This exerciee encompasses a total planning approach which necessitates a forward view of the firm in order to ensre that resorces are available for ftre growth. The fiveyear time horizon of the Capital Plan assists in identifying longrn problem areas, illstrates the impact of policy changes, and assists in ftre decision making. Projections for a company are sally developed in a half day meeting between the company's senior financial management and personnel from the Corporate Conslting Section of the Harris Bank. The pro jections sed are those of the company's management; the bank consltants act only as conselors in assisting with the development of the pro jections. Using the estimates made in the conference with management, compter calclations are made projecting detailed balance sheets, abbreviated income statements, sorce and application of fnds statements, and ratio analyses. These financial statement projections incorporate all combinations of sales growth, earnings growth, and asset reqirements assmed by management. This reslts in eighteen eeparate financial statements for each of the five years projected. '1:_/ This discssion is based on a printed explanation of needed inpts and sample otpt of the Capital Planning Service available throgh the Harris Corporate Financial Services of the Harris Trst and Savings Bank, Chicago, llinois.

12 7 Farmland ndstries, nc.1/ As of September 1, 1973 Farmland ndstries, nc. made a financial analysis program available to member cooperatives. Planning bdgets for a local cooperative are programmed into the compter. Then, each month the local cooperative sends in its operating statement and balance sheet, which are also programmed into the compter. The reslting otpt is a complete operational and financial analysis comparing the actal statements with the bdgeted statements. Land O'Lakes/ Land O'Lakes has developed a master acconting system for any cooperative, regardless of size. t is not a specific bookkeeping system bt can be sed with a manal system, a bookkeeping system, or a compter operation. The master system is tailored to fit the needs of each individal cooperative. The system organizes and lays ot in a systematic manner the operating controls and paper flow reqired to maintain the books of a cooperative. t incldes the following items: 1) Ordering and receiving material. 2) Selling and invoicing material. '}_/ Thia discssion is based on correspondence with Mr. Robert K. Monroe, Coordinator of Cooperative Development for Farmland ndstries, nc., Kansas City, Missori. i/ Thia discssion is based on correspondence with Mr. William E. Heck, Manager of the Member Cooperative Acconting for Land O'Lakes, Fort Dodge, owa.

13 8 3) Material control. 4) Cash control. 5) Grain acconting. 6) Payroll. 7) Sales and prchase jornals. 8) General ledger and chart of acconts to inclde departmental acconting. 9) Procedre for closing the books. 1) Procedre for preparing financial statements. FarMarco1/ FarMarCo also offers compterized data processing services for cooperatives. Three packages are available: 1) Payroll Services; 2) Daily Acconting Service; and, 3) Patronage and Eqity Service. The Payroll Service program performs all payroll posting. FarMarCo's compter also prints ot the payroll checks showing both yeartodate and crrent information, all that is needed is the proper signatre. Payroll Service also incldes the qarterly state and federal government reports and the annal W2 forms for the employees. Daily Acconting Service is the second package available from Far MarCo. The daily jornals printed ot inclde the General Jornal, the Daily Sales Jornal, and the Check Register. For better control of acconts receivable the compter posts, calclates, and adds finance charges, shows accont aging, and prepares cstomer statements. A patronage Accmlation Report is compted to keep an p to date record./ This discssion is based on correspondence with Mr. Delaine Gaston, FarMarCo Data Processing Center, Htchinson, Kansas.

14 9 of accmlated patronage for each patron. Monthly general ledger reports are also printed ot to give the needed information to prepare the financial statements. The third package available is the Patronage and Eqity Service. This package keeps eqity records pdated so the exact ownership of every member is known. Loisiana State University?_/ Dr. Ewell P. Roy completed a pilot stdy on the bookkeeping operations of farm spply stores. The objective of the pilot stdy was to determine if some type of atomated or compterized bookkeeping cold feasibly replace all or part of the manal bookkeeping operations. The stdy's analysis was based on one month's operations of a typical farm spply firm in Soth Central Loisiana. Becase of the repetitive natre of bookkeeping one month's operations was deemed sfficient. The compter program sed to analyze the operations was the Statistical Analysis System (SAS) developed by the Department of Statistics at orth Carolina State University. npt from the farm spply firm incldes (1) the sales invoices, (2) an inventory code, and (3) a patrons' code containing a list of all patrons. Data from the sales invoices is transferred to 8colmn code sheets and pnched on. This discssion is based on correspondence with Dr. Ewell P. Roy, Department of Agricltral Economics, Loisiana State University, Baton Roge.

15 1 data cards. Use of the inventory and patron's codes are incorporated into this step of processing. Several types of otpt soltions or smmary acconts can be obtained from the SAS program (1) a detailed analysis by department of sales, costs, and gross margins for each item of inventory handled; (2) an analysis of all sales as to credit, cash, or other types of transactions; (3) a detailed analysis of sales, costs, and gross margins for each of the store's patrons pls the amont of credit sales otstanding for each patron's accont; and, (4) a classification of sales, coats, and gross margins for member patrons verss nonmember patrons. Roy conclded that the SAS program was not ideal for processing this type of data. nstead, a special program shold be written to per form the processing more efficiently. University of Missori!/ Researchers at the University of Missori developed a compter program designed especially for the farm spply indstry to smmarize firm financial performance, compare firm records to average aggregate data of the indstry, and identify where the firm is making or losing money within their operation. At the end of each comparison period dring a calendar year, co operating firms receive two separate sets of compter printots. One et contains financial swmnaries of the firm for the crrent period and ll This discssion is based on "A Compterized Financial nformation System for the Farm Spply ndstry", Herman Harrison, Jr. and Gary T. Devino, Department of Agricltral Economic&, University of Missori, Colmbia.

16 11 the other represents the average financial position calclated for similar firms in the state. Each set is identified with an appropriate cover sheet and contains an earnings statement, a balance sheet, ratio calclations, and departmental reports. The earnings statement smmarizes the sales, cost of goods aold, and expenses for a particlar time period, sch as a month, qarter, or a year, and reports the profit or loss from operations. Each printot contains a smmary for the crret comparison period as well as for yeartodate operations. The balance sheet lists the assets, liabilities, and eqity of the bsiness nit as of a given date. The ratio calclations measre the efficiency and profitability of the firm. The for major categories of ratios developed for each firm are liqidity, solvency, profitability, and miscellaneos. The departmental reports show percentages smmarizing departmental contribtions to overall sales, prchases, inventories, cost of goods sold, and gross profit. METHODOLOGY The model from Missori was chosen to be the basic program for this stdy becase it is specifically designed for the farm spply indstry. The models developed by First ational City Bank and Harris Trst and Savings Bank are not specifically designed for farm spply firms. Accessability and stage of development preclde sing the remaining systems described in the literatre review section.

17 12 The program developed at the University of Missori was tested with sample data to verify its capabilities. The reslting otpt was analyzed and the program revised where needed to prodce improved otpt for firm financial evalation. After examining typical acconting systems sed by farm spply firms in ebraska, a coding form was developed to minimize the effort of ob taining inpt data for the revised program. Acconting data was then gathered from a ebraska farm spply firm to teat the inpt form and the program. A contining financial analysis comparison form was developed for the manager to se. Figres from program printots can be transferred to this form for intrafirm financial comparisons with previos acconting periods. Finally, two proposed pblications were written: the first to in trodce managers to the financial data smmary and analysis system and what it can do for them, and the second pblication to explain the compterized otpt from the system and how it shold be interpreted by managers.

18 CHAPTER TRODUCTO Thia chapter describes the compterized financial data smmary and analysis system. Attention is directed toward inpt reqirements, ot pt generated, and compter processing. Finally, a contining financial analysis comparison form is introdced and illstrated. STADARDZED PUT Since one of the objectives of the financial data smmary and analysis system is to develop standardized financial statements for in dividal firms and composite averages for grops of firms for comparison prposes it is important that each firm se the same procedre and forms for sbmitting data. To overcome the possibility of inpting data nder incorrect or nonatandardized accont names the system is programmed to accept only a standard chart of acconts (See Figre 1). This chart was developed especially for the farm spply indstry by the Grain and Feed Dealers ational Association. A compter is sed to process all data for the financial data sm mary and analysis system. t is essential that each firm's inpt data be sfficiently coded so that files readable by the compter can be created. The special inpt coding form to facilitate this transition from firm data to acceptable compter inpt data is fond in Appendix A. All in pt from participating firms mst be sbmitted on this form.

19 14 Figre 1. Chart of Acconts For The Financial Data Smmary and Analysis System. SALES, PURCHASES, AD VETORY ACCOUTS (By Department) GRA DEPARTMET Wheat Corn Barley Oats Rye Grain Sorghm Rice Soybeans Other Grain FERTLZER DEPARTMET Dry Mix Liqid Mixed itrogenos Material Phosphate Materials Potash Lime Other Fertilizer SEED DEPARTMET Grain Seed Legme Seed CraBS Seed Other Seed PEED DEPARTMET Poltry Feed Beef Feed Dairy Feed Swine Feed Special ngredients Bagged Feed Blk Peed Other Feed FARM SUPPLES DEPARTMET Agricltral Chemicals Animal Health Prodcts Farm Machinery Hardware Petrolem Prodcts Livestock & Poltry Eqipment Lmber and Bilding Spplies Tires, Batteries & Accessories Other Farm Spplies OTHER DEPARTMETS OTER COME AD EXPESE ACCOUTS OPERATG AD SERVCE COME Grinding, Rolling, Pelleting, and Mixing Feed Cleaning and Treating Seed Cstom Applications Eqipment Rental ncome Grain Storage, Handling and Drying Trcking Operation ncome OTHER COME nterest ncome Finance Charges Dividends Rental ncome Gain on Diaposal of Fixed Assets OTHER EXPESES nterest Expense ncome Taxes Loss on Disposal of Pixed Assets

20 15 (Figre 1 Contined) OPERATG EXPESE ACCOUTS SALARES AD WAGES Office Salaries Management Salaries Direct Labor ndirect Labor Other Labor PAYROLL TAXES FCA State Unemployment Federal Unemployaent EMPLOYEE BEEFTS DEPRECATO AD AMORTZATO RET EXPESE Eqipment Leases Bilding and Facilities Lease Other Rent REPARS AD MATACE Eqipment Repair Bilding and Facilities Repair Other Repair SURACE EXPESE Bildings and Machinery nsrance nventory nsrance Other nsrance PROPERTY AD BUSESS TAXES Real Estate Taxes Personal Property Tax Licenses (bsiness, ato, etc.) Feed Tax Fertilizer Tonnage Tax Other Taxes UTLTES Heat Lights Power Water Fel Telephone ADVERTSG EXPESE TRAVEL AD ETERTAMET SUPPLES Stationery and Printing Postage Small Tools Fmigants Operating Spplies Bags Gas and Oil Other Spplies PROFESSOAL SERVCES Legal Expense Acconting and Adit Conslting Fees Electronic Data Processing Other Professional Services MSCELLAEOUS EXPESE Contribtions Des Sbscriptions Bad Debts Bank Charges Brokerage

21 16 (Figre l Contined) BALACE SHEET ACCOUTS CURRET ASSETS Cash on Hand Cash in Banks Marketable Secrities Acconts Receivable Cstomers Acconts Receivable Other otes Receivable Finance otes Receivable Allowance for Dobtfl Acconts Margin Deposits Advances Paid on Prchases Accred Storage Charges nventories Prepaid nsrance Prepaid Rent Prepaid nterest Other Prepaid Expenses Other Crrent Assets LOG TERM ASSETS otes Receivable oncrrent Board of Trade Membership Land Bildings & Elevator Properties Machinery and Eqipment Ato and Trcks Office Frnitre & Eqipment Other Property, Plant, & Eqip. Accmlated Depreciation for Each Accont ntangibles Other Long Term Assets CURRET LABLTES otes Payable Banks otes Payable Other Crrent Portion Long Term Debt Acconts Payable Trade Acconts Payable Other Otstanding Drafts Employee Taxes Withheld Taxes CollectedSales, etc. Dividends Payable Advances Received for Sales Accred Property Taxes Accred Salaries and Wages Accred nterest Expense Accred Payroll Taxes Accred Storage Expenses Other Accred Expenses Federal ncome Taxes Payable State ncome Taxes Payable Other Crrent Liabilities LOG TERM LAtlLTES Long Term Debt Sorce A Long Term Debt Sorce B Long Term Debt Sorce C Other Long Term Debt Deferred ncome Tax Deferred nvestment Credit EQUTY Preferred Stock Common Stock Additional Paidn Capital Retained Earnings Proprietorship Other Eqity

22 The acconts listed on the coding form correspond to the chart of 17 acconts listed in Figre 1. Each accont is identified by name and by a series of code nmbers. Additional sbacconts are listed nder most major acconts to facilitate the direct transfer of data from firm records. ltmdediately to the left of each accont and sbaccont name, nder the caption TEM DESCRPTO, is a nmber in parentheses. The first two digits of the nmber is the composite code. The compter aggregates all the individal sbacconts listed with a cormnon composite code into one major accont. For example, the sbacconts Wheat, Corn, Barley,, Other Grain all have the composite code 1 which will be aggregated into the major accont GRA DEPARTMET, which also has the composite code 1. The three digits to the right of the composite code represent the item code. As a reslt each accont and sbaccont is identified by a niqe code nmber on the coding form. The two digit code to the left of each line for inpt entries on the coding form is the accont classification code. This tells the compter the type of entry (net sales, prchases, inventory, expenses, assets, liabilities, etc.) nder each accont and sbaccont. Each entry on the coding form is keypnched onto compter cards. Each card is identified by firm identification code, date, composite code, item code, accont name, classification code, and dollar vale. When a firm begins sing the financial data smmary and analysis system, a coding form mst be filled ot to list the beginning inventory valations as of the starting date. Then at the end of each period a

23 coding form mst be filled ot by each firm to smmarize transactions and 18 to list ending inventory valations for the period. These ending in ventory valations are retained within the system for se as the next period's beginning inventory. The system is designed to develop financial statements on monthly, qarterly, semiannal, or annal bases. Firms can sbmit their data for net sales. prchases, and expenses on a more freqeai: interval than sed in processing. For example, earnings statements might be prepared by the compter on a semiannal basis. Firms cold sbmit one six month report or six one month smmaries if it wold facilitate the transfer of their records to the coding form. f this is the case, the compter will accmlate the data for the longer period of time (6 months in this example). Balance sheet acconts and ending inventory have to be recorded as of the closing date of the period being processed. Assming more than one time period is to be processed dring the calendar year, the program is set p to smmarize data for the period crrently being processed and for a year to date total. Beginning in ventory information for the varios time periods involved are extracted from appropriate data files on the basis of date parameters provided at the time of program exection and comparisons with the date recorded on each data inpt card. The capability of processing an infinite nmber of firms is bilt into the program, whether it be for individal firm reports or for a com posite grop average report. Data to be processed is simply placed in appropriate compter files.

24 19 An alternative is available to process only selected firms on a particlar compter rn. This alternative is particlarly valable for the development of composite average otpt for grops of comparable firms. This capability alleviates the necessity of physically ia assembling data sets to exclde certain firms from being processed. Related detail on compter operations o the financial data smmary and analysis system is given in the section COMPUTER PROCESSG. STADARDZED OUTPUT Two types of otpt are available: 1) individalreglar, and 2) individaldetail. An example printot showing the format of the otpt for the individalreglar report is fond in Appendix B; an example of the individaldetail otpt is fond in Appendix C. Composite average reports can take on the format of either individal reglar or individaldetail otpt depending on the detail of the inpt data. n total, considering that otpt can be individal or composite grop average and reglar or detail there are for otpt options available: Option. Option. ndividalreglar Reports. Composite Grop Average Reglar Report. Option ll. ndividaldetail Reports. Option V. Composite Grop Average Detail Report. ndividalreglar Reports (Option ). Thia option generates ot pt nder the headings of Earnings Statements (by department and total

25 operation), Balance Sheet, Ratio Analysis, and Departmental Analysis. 2 Figre 2 is a diagram of the types of otpt items prodced. Appendix B contains sample otpt for Option. The inpt data for this option is. sally limited in that accont item totals are sbmitted for processing rather than detail by sbaccont. And, operating expenses are sbmitted for the total operations (not allocated to each department). Composite Grop Average Reglar Report (Option ). This otpt option aggregates data for all firms or selected firms into a central data bank and an overall grop average is compted for each otpt item. A printot with the same format as Option will be generated for the composite average (See Figre 2). ndividaldetail Reports (Option ). This otpt option is similar to, bt more detailed than Option. Option contains all ot pt in Option pls additional information nder the heading Detail By tem. Also, a second page of otpt is added to the Missori model, which dedcts departmental operating expenses from departmental gross profit on sales to arrive at departmental net profit on sales. Figre 3 is a diagram of the types of otpt items prodced. Appendix C contains sample otpt for Option. The inpt data for this option is detailed in that item sbacconts are sbmitted for processing rather than com posite accont totals. And, operating expenses are sbmitted for each department rather than for the total operations. Composite Grop Average Detail Report (Option V). This otpt option aggregates data for all firms or selected firms sing ndividal Detail Reports (Option ) into a central data bank and an overall

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27 22 Cl) e Cl) 't: c: Cl) Q Cid Q Cl) 8 co. Cid c: "" >. Cid.d ""4. >. ll ti) Ul U M "" c: ll Q MOCllS i. ""4 s ' ' ' " Q M '" "" ti) ""4 c: c: ' 'S::QMG 1118 ='Ql>C>Q. s:: 8. > c: 14 >. ""4 c: 't: co. t "" ""4 "" =' ' " p M Q c:1 CC c: c:1 '.OS::MOZ s:: ""4 ti) ""4,.J "r"4go,t t ""4 "lj 14 c: c: ll 'd < "" > c: c: 'i '""c: "lj M i:l H Q CO Q co ""4 Qj t > Cl) ' " CC 8 8 ' ' Q coc:to > c: Q ) ""4 i:ll4 Cl)4 BCQQ M Po. O>M O c: ""4 i:l co Cl) Qj "lj '" ZJ, o,t Q Cl) ""4 Qj s:: s:l i ""4 '""lj CO Q U ' ' M CO't:l.f i : Q s:l,t. s:q s::1 en SZJ 9 ti) 14 ti) ll ll Qj ""4 >. en CD. 'd "". =' ""4 ""4 ""4 t7',c i:a:l t! "" : ""4.&. >.Cl) ti) :. =' ri >.. Q Ea a "" >. i:a:i ""4 c: ""4 U.C CS f.:l 't: c: ll. Q 14 ""4 Q "". ='>""4Q. rn Cl) ti) it ll < t7'. llm Q CS ll "" Q J t s c: '" CS Q CS < z t 8 Qj ti) H. 8 ti) ll CS t!) Qj.&.. z. Cl) CS H tls Q E E4 en. ti) tls E4 c: ti) ti),.j t!) M c: :z:.&. llm ""4 M M '" ""4 '" "" M M Po. Cl) Po. Cl) a) Cl) <.&..&. Qj Cll Q t!) :z: t!) :z:

28 23 average is compted for each otpt item for the grop. A printot with the same format as Option will be generated for the composite average (See Figre 3). This is an additional option to the Missori model. Selective Processing. A separate capability is available whereby information for a specific list of firms can be processed withot physically disassembling the data set to exclde certain firms from being processed. This capability is identified as selective processing. Data for firms that are not selected for processing are simply ignored by the compter. Each firm that participates receives two sets of otpt at the end of each processing period. The first set is the reslts of the individal firm's operation, that is Option or Option. The second set will be the composite grop average of similar type firms. f a firm receives Option otpt, the second set will be Option 11; if Option is sed to otpt individal firm reslts, the second set received will be Option V, with one exception. f the nmber of similar type firms processed nder Option is not sfficient to have meaningfl otpt nder Option V the firms' data will be combined with similar type firms from Option to generate the grop average for Option. COMPUTER PROCESSG The sorce deck of the financial data smmary and analysis system is written in PL/land is listed in Appendix D. This program has been com piled and exected on an BM 36. Operating instrctions for this program are in Appendix E.

29 24 npt data is sbmitted to the compter by sing for inpt files: 1) Pa rams File. 2) Master File. 3) Crrent File. 4) Prevos File. Params File. The information in this file is tilized to specify descriptive information and inptotpt options to the compter while the program is being exected. Six cards are reqired. Parameter Card (Card 1) Colmn Description 1 Type Statement Code ndividalreglar Reports 2Composite Grop Average Reglar Report 3ndividalDetail Reports 4Composite Grop Average Detail Report 1 Selective Processing Code Process only firms listed in master file 2Process all firms having complete data in both crrent and prevos files 223 Date Code on Beginning nventory Cards for Crrent Period (last two digits of year, month) 333 Date Code on Beginning nventory Carda for Year to Date Period (last two digits of year, month) 459 Literal Constant Date of Statement 662 mber of Days in Crrent Period 772 mber of Days in Year to Date Period 798 mber of Months in Crrent Period

30 25 User Spplied Message Cards (Cards 23) Colmn Description 18 Any two line message that an operator wishes to appear on each page of otpt. nsert two blank cards if message is not desired. Sponsoring nstittion (Cards 46) Colmn Description 18 Any three line address that an operator wishes to appear on the cover sheet of each printot. Center each line of data on the card. nsert three blank cards if information is not desired. A 'l', '2', '3', or '4' mst be coded in colmn 1 of the parameter card to indicate the type of otpt to be generated on a particlar com pter rn. Likewise, a 'l' or '2' mst be coded in colmn 1 for se lective processing. There are no defalts for either of these variables. The date codes referenced by the next two data fields on the para meter card correspond to the for digit date code that has been pnched on the specified beginning inventory cards. These cards mst be processed for beginning inventory valations as of the crrent period and as of the starting date of the year to date period. For example, inpt data representing Janary 1, 1974, wold have '74' coded on each inpt data card in the date field. Data representing March 31, 1974, wold have '743' coded on each inpt card. Data representing Jne 3, 1974, wold have a '746' coded on each inpt card. To process the period Janary throgh March, beginning inventory data for the crrent period wold come from the '74' cards. Likewise, the year

31 26 to date period wold come from the '74' cards when processing the first qarter. To process the period April throgh Jne, the '743' cards wold represent the beginning inventory valations for the second qarter. The '74' data cards wold represent the beginning inventory valations for the year to date. The appropriate date codes are pnched on the par rameter card as per the example to differentiate the inpt data cards that mst be processed for each of the time periods. The date of statement data field is initialized with the literal re presentation of the month, day, and year exactly as it is to appear in the heading of each financial report. f statements are to be prepared for Jne 3, 1974, the character string 'Jne 3, 1974' wold be pnched on the parameter card. The nmber of months is sed to complete the heading on each financial statement. f the time period is for three months, a '3' wold be pnched on the parameter card. The ser spplied message cards are initialized with any specific comment that is wanted on each page of the otpt. nformation is printed in the exact format as it appears on each card. Blank cards mst be in serted if no messages are desired. The sponsoring instittion is a three line address that appears on the cover sheet of the compter printot for each firm. The three eighty character strings are printed in the center of the cover sheet, conseqently any wording shold be centered on the inpt cards exactly as they are to be printed. Again, blank cards are necessary to fill the space if no address is desired on a particlar compter rn.

32 27 Master File. (optional) f the selective processing alternative is to be sed the list of identification codes of the firms that are to be processed on a particlar compter rn is recorded in this file. The file is processed sing nformatted inpt/otpt. The six digit identification codes of the firms to be processed mst be listed in ascending order. Each code can be on a separate card or several codes can be listed on one card as long as each six digit code is separated by one or more blanks. Acconting data for these firms only will then be extracted from the Crrent and Prevos Files. Other firms' data will be ignored by the compter. Crrent File. The information in this file contains each firm's in pt data for the crrent period. t contains all information necessary to compile a crrent period earnings statement and balance sheet for a firm with the exception of beginning inventory valations. Beginning in ventory information is maintained in the Prevos File as discssed in the next section. Contents of this file can be maintained on compter cards, disk, or tape. Data are contigosly stored in ascending code order. This file is keypnched from the coding form according to the following format specifications. Colmn Description 16 Firm dentification Code (three digit conty code, three digit firm code) 912 Date (last two digits of year, month) 2122 Composite Code

33 28 Colmn Description tem Code Accont ame Classification Code 718 Dollar Vale (pnch in decimal point) Colmns 7 and 8 are not specified for se in the above format. They can be sed for identification prposes withot interfering with the processing. For example, assme a firm's data is to be processed qarterly and they sbmit their data on a monthly basis. Janary's sales, prchases, and expenses can be identified by keypnching a 'Ol' in colmns 7 and 8. The same procedre is sed for Ferary except ptting a '2' in colmns 7 and 8. March's data will contain a 'OJ' in colmns 7 and 8 for sales, prchases, expenses, balance sheet items, and ending inventory data. Colmns 718 are specified to be sed for dollar vales. For nmbers less than or eqal to $9,999, the decimal point shold be keypnched in colmn 78 of the compter card and wold appear on the card as ' '. f the dollar vale exceeds $9,999, the decimal Point shold not be keypnched on the compter card. For example, if the dollar vale for an individal entry is $14,286, it shold be key pnched on the compter card as ' '. Prevos File. This data set is tilized as the filing location for all beginning inventory data that is initially sbmitted by a firm before its first compter rn. After a compter rn, assming there is more than one period involved, data from the Crrent File is removed from that location and merged into the Prevos File. This transfer provides a

34 sorce of historic data for developing year to date earnings statements and ratio analysis reports as well as providing ending inventory data 29 from the 11K>st recent compter rn for se as beginning inventory for the next J"Un. The same sorting and format specifications apply to this file as for the Crrent File. Likewise, Prevos File data can be maintained on compter cards, disk, or tape. All reslts generated by the compter program are roted to one of two otpt files: 1) Printer File. 2) Smmary File. Printer File. The financial statements and ratio analysis reslts from a compter rn are accmlated in this file. The reslts are then printed from this file as paper otpt. Smmary File. This file accmlates all the diagnostic messages that are generated by the compter program, dring a rn. Then the messages are printed as paper otpt. COTUG FACAL AALYSS COMPARSO To make sccessive comparisons of financial statements easier and consistent over time the "Contining Financial Analysis Comparison" form shold be completed by the firm. Recorded on it are figres and percent ages from the earnings statements, balance sheet, ratio analysis, and departmental analysis otpt for the present acconting period and the average of previos acconting periods. nformation for the present ac conting period can be plled directly off the printot. At the end of

35 the acconting period each sheet shold be completed and placed in a binder as ahown in Appendix F. 3 Appendix G contains a proposed pblication introdcing the financial data smmary and analysis system to interested firms explaining the system's capabilities and advantages, and providing information on how to prepare inpt data for processing. Appendix H contains a proposed pbli cation explaining the compter otpt and how it shold be interpreted by each manager.

36 CHAPTER TRODUCTO The prpose of this chapter is to discss the interpretation of the financial data smmary and analysis system's otpt. nterpretation and analysis of the otpt by the manager of the farm spply firm is essential to the sccess of this system. Each statement of the printot is dis cssed as to content and comptation. Data was gathered on a farm spply firm for a five year period, / This data was processed and transferred to the Contining Finan cial Analysis Comparison Forms fond in Appendix F. Examples are drawn from this data to illstrate specific points and to note trends in the financial condition of the firm. EARGS STATEMET An earnings statement (also known as a profit and loss statement, an income statement, or a statement of operations) is a smmary of all the firm's economic activity throghot an acconting period, arranged so that operating expenses can be sbtracted from gross income to determine a net profit for the period. The earnings statements generated are of two types, departmental and total operations. Departmental Earnings Statement (Option ) The format for each of the six departmental earnings statements is the same. A sample of these statements can be fond on pages (1 of 8) to (6 of 8) in Appendix B. The!/ Data obtained from an interview with Mr. Jack Leigh of the Cooperative Service Company, Lincoln, ebraska.

37 32 SALES category represents the revene derived from merchandise sold by the department. COST OF GOODS SOLD is derived by adding the vale of the BEGG VETORY to the vale of the PURCHASES made by the firm dring the period and then sbtracting the vale of the EDG VETORY. COST OF GOODS SOLD is sbtracted from SALES to arrive at the vale of GROSS PROFT O SALS. Option gives composite grop average departmental earnings state ments sing the same statement format as Option. (Option ) The format for each of the six departmental earnings statements is the same. A sample of these statements can be fond on pages (1 of 14) to (12 of 14) in Appendix C. Arriving at GROSS PROFT O SALES ses the same procedre as described above for Option. The next section of each earnings statement dedcts TOTAL OPERATG EXPESES for each department from GROSS PROFT O SALES to arrive at ET PROFT O SALES. Option V gives composite grop average departmental earnings state ments sing the same statement format as Option. Total Operations Earnings Statement The format for this statement is the same for all for otpt options. The total operations earnings statement is fond on pages (7 of 8) and (8 of 8) for Option in Appen dix Band pages (13 of 14) and (14 of 14) for Option in Appendix C. The SALES OF MERCHADSE category represents the total revene de rived from merchandise sold by the firm. COST OF GOODS SOLD is derived by adding the vale of BEGG VETORY to the vale of all PURCHASES

38 made by the firm dring the period and then sbtracting the vale of ED 33 G VETORY. COST OF GOODS SOLD is sbtracted from the SALES OF MER CHADSE to arrive at the vale of GROSS PROFT O SALES. To this figre, the OPERATG AD SERVCE COME is added to arrive at GROSS PROFT FOR TOTAL OPERATO. The percent of sales calclation is based on SALES pls OPERATG AD SERVCE COME. The next section of the total operations earnings statement concerns dedcting operating expenses from gross profit. TOTAL OPERATG EXPESES are sbtracted from GROSS PROFT FOR TOTAL OPERATO to arrive at OPER ATG PROFT. OTHER COME is added to this figre and OTHER EXPESES are sbtracted ot to give ET PROFT for the total operation. The vale of ET PROFT is then expressed as a percent of gross income. Logically, the first item to examine in analyzing the earnings state ment is the dollar sales volme. Dollar sales are the reslt of a com bination of two factors: selling price per nit times the qantity of goods sold. The primary objective of the earnings statement is the de termination of operating efficiency. The size of dollar sales or gross operating income means little if it is not translated into net profits. The share of sales that is absorbed by operating costs and expenses is one of the principle concerns to the manager. By comparison of earnings statements for sccessive periods it is possible for the manager to ob serve the progress of the firm. For example, the earnings statements for the Farm Spplies Department in Appendix F shows a contining increase in sales and net profits over the five year period. This wold indicate to the management a trend b4d developed and that it may be profitable for the firm to expand this department. The total operations earnings statement

39 indicates a trend of increasing sales for the firm, bt the net profits as a percent of gross income has oscillated p and down over the same time period. 34 BALAeE SHEET The balance sheet (also referred to as the statement of financial condition) is an instantaneos pictre of the financial condition of the firm at a specific moment in time. t systematically lists all of the assets and liabilities of the firm and then derives eqity. ts prpose is to reveal liqidity and solvency of a firm at a particlar moment in time. Liqidity is a measre of the degree to wich crrent assets can be converted into cash to meet crrent obligationl. Solvency is a measre of the ability of a firm to meet crrent and long term credit obligations. Becase asset and liability valations change continosly, the vales measring liqidity and solvency will be affected by the date on which the balance sheet is made. The balance sheet can be fond on page (1 of 1) immediately following the total operations earnings statements in the sample printots in Appendixes Band c. The format of the balance sheet is the same for all for otpt options. ronding. The percent of total colmn may not add to 1 de to The balance sheet is arranged into two parts, each of which, by def inition, is always eqal to the other. The first is a listing of all as sets of the firm, classified into two grops according to the liqidity of the assets. Assets that will normally be converted into cash or will

40 the percent of TOTAL LABLTES AD EQUTY has iecreased over the same time period. 36 RATO AALYSS Ratio analysis is a powerfl tool the manager can se to measre the financial position of the firm. Bsiness ratios provide symptoms that identify areas in the firm needing improvement. Once the symptoms are determined it is management's role to find and solve the problems casing the symptoms. A ratio is a fixed relationship between two similar things. Ratios, stated in acconting terminology, can compare items in a balance sheet, one to another, or ratios can describe the relationship of earnings state ment entries to each other. Ratios can also compare one vale in the balance sheet to any entry in an earnings statement. The ratios reported for the firm are divided into for major cate egories: 1) LQUDTY RATOS, 2) SOLVECY RATOS, 3) PROFTABLTY RATOS, and 4) MSCELLAEOUS RATOS. The ratio analysis can be fond on page (1 of 1) of the sample otpt in Appendixes Band C, directly after the bal ance sheet. The ratio analysis printot format is the same for all for options. Liqidity ratios are commonly sed indexes of financial strength for the firm and are valable measres of the ability of the firm to meet crrent obligations. The CURRET RATO is the relationship of crrent assets to crrent liabilities. t is compted in the following manner:

41 35 be sold or consmed dring the next operating cycle are termed CURRET ASSETS. All other assets are classified as LOG TER?l ASSETS. LOG TERM ASSETS inclde investments, property, plant, eqipment, etc. which are sed to prodce prodcts and services and have an expected sefl life to the firm of greater than one year. The second part of the balance sheet specifies the claims against the assets. Liabilities that come de within the next year and that are ex pected to be paid with crrent assets or by the creation of other crrent liabilities are classified as CURRET LABLTES. The firm shold in clde that portion of longerterm debts which will become de dring the next acconting period as part of CURRET LABLTES. Amonts owed that do not become de within one year are classified as LOGTERM LABLTES. The final category on the liability side is the owner's EQUTY, sometimes referred to as net worth. This figre is the difference between TOTAL ASSETS and TOTAL LABLTES and represents the ownership claim against the firm. The effects of the operations of the firm are reflected in the bal ance sheet by increases and decreases in the varios assets and liabili ties and also in eqity. These changes can be observed by comparing bal ance sheets of sccessive periods. For example, the balance sheets in Appendix F indicates the otstanding acconts receivable have increased in absolte dollars and also as a percent of total assets in the 1969 to 1973 period. This cold signal to the manager that a review of the credit Policy of the firm is needed. The second part of the balance sheet in dicates to the manager that EQUTY has increased in absolte dollars, bt

42 37 Crrent Ratio. Crrent Assets Crrent Liabilities The LQUD RATO (sometimes referred to as the acidtest ratio or the qick ratio) compares only the most liqid assetsthat is, crrent assets mins the vale of inventories and prepaid expensesto crrent liabilities. t is compted in the following manner: Liqid Ratio. Crrent Assets nventories Prepaid Expenses Crrent Liabilities Solvency ratios spply information abot the ability of the firm to meet long term obligations. The LABLTES/ASSETS ratio measres the proportion of the firm's investment that is spported by creditors and borrowed capital. t is compted in the following manner: Li biliti p As t Rati Total Liabilities a es er se o T ota 1 noses t The LABLTES/EQUTY ratio expresses the direct relationship of borrowed capital to owned capital and is an indication of the secrity that cred itors have in their loans. t is compted in the following manner: Total Liabilities Liabilities Per Eqity Ratio Eqity The FXED ASSETS/EQUTY ratio relates the proportion of eqity that is invested in long term assets. t is compted in the following manner: Fixed Assets Per Eqity Ratio Long Term Assets Eqity

43 38 Profitability ratios are of two types: those showing profitability in relation to sales and those showing profitability in relation to in vestment. The percentages derived for GROSS RETUR O SALES represents the gross profit margin for the total merchandising operation and for each department within the firm. t is compted in the following manner: Gross Retrn on Sales. Gross Profit on Sales X 1 Sales The ET RETUR O GROSS COME ratio represents the profit margin above cost of goods sold and operating expenses for the total operation. t is compted in the following manner: et Retrn on Gross ncome et Profit X 1 'Sales of Merchandise+ Operating & Service ncome ET RETUR O ASSETS ratio represents the prodctivity of the total assets of the firm. t is compted in the following manner: et Profit et Retrn on Assets Total Assets X 1 And, the last ratio in this grop ET RETUR O EQUTY indicates the re trn to the ownership investment in the firm. t is compted in the following manner: et Retrn on Eqity et Profit x 1 Eqity The last grop of ratios are the miscellaneos ratios. AVERAGE VETORY TUROVER for the total operation and individal departments de

44 notes the freqency that inventory investment is "trned" dring the 39 period stdied. t is compted in the following manner: Cost of Goods Sold Average nventory Trnover,;;;;. (Beginning nventory+ Ending nventory) (2) The AVERAGE COLLECTO PEROD (DAYS) represents the ratio of credit sales to total sales and service income mltiplied by the nmber of days in the comparison period. t is compted in the following manner: Receivables Average Collection Period (Days) Sales+ Service ncome X o. of Days The last ratio of OPERATG EXPESES/GROSS PROFT denotes operational ef ficiency of the firm. t is compted in the following manner: Operating Expenses/Gross Profit Operating Expenses x 1 Gross Profit For Total Operation The financial position of the firm can be monitored by observing the RATO AALYSS for sccessive periods. The liqidity ratios and solvency ratios reflect the financial condition of the firm. For example, the Liabilities/Eqity ratios on the ratio analysis sheets in Appendix F, wold indicate to the manager that liabilities for the firm are increasing at a faster rate than the eqity in the firm. The profitability ratios and the operating expenses to gross profit ratio will be helpfl in analyzing the firm's earnings statements. et retrn on gross income measres the retrn on the total investment in as sets. et retrn on eqity measres the retrn on the ownership invest

45 ment and is ths sally an important measre of how well the firm is 4 achieving its objectives. For example, all of the et Retrn ratios for 1973 are above the five year average shown in Appendix F. This wold indicate to the manager that he is achieving the objective of a higher net retrn. Average inventory trnover indicates to management the nmber of times average inventories of the firm are converted into cash or receiv ables dring the acconting period. Hence, it reflects on the qality of inventories throghot the acconting period and on the prchasing and merchandising efficiency of management. DPARTMETAL AALYSS The departmental analysis can be fond on page (1 of 1) directly following the ratio analysis in Appendixes Band C. The printot format is slightly different for Option and Option ll. (Option ) Thia report relates each department's contribtion to the following categories: SALES, BEGG VETORY, PURCHASES, EDG VETORY, COST OF GOODS SOLD, and GROSS PROFT. Option gives a composite grop average sing the same statement format as Option. (Option ) All the information contained in Option is in Option 111 pls two more colmns of information, OPERATG EXPESES and ET PROFT O SALES. Option V gives a composite grop average sing the same statement

46 41 format as Option. Sccessive departmental analysis sheets, as shown in Appendix F, Wold indicate to the manager any trends that are developing over time in each of the eight categories for each department. DETAL BY TEM This section of the otpt is generated only nder Option. t can be fond on pages (1 of 6) to (6 of 6), immediately after the de partmental analysis. Page (1 of 6) relates the contribtion of each commodity or department to the following categories: SALES, BEGG VETORY, PURCHASES, EDG VETORY, COST OF GOODS SOLD, GROSS PROFT, OPERATG EXPESES, and ET PROFT O SALES. Page (2 of 6) relates the contribtion of each item to the following major categories: OTHER OP ERATG AD SERVCE COME, OTHER COME, and OTHER EXPESES. Pages (3 of 6) and (4 of 6) relate the contribtion of each operating expense to the TOTAL OPERATG EXPESES. Page (5 of 6) relates the contribtion of each of the assets to the TOTAL ASSETS. Page (6 of 6) relates the con tribtion of each of the liability and eqity categories to TOTAL LA BLTES AD EQUTY.

47 CHAPTER V SUM?fARY The general objective of this stdy was to enhance the existing cap abilities of a financial information system for farm spply firms. This objective was accomplished in the following ways: 1) Several financial information systems were reviewed to learn which systems were available to farm spply firms. A model developed at the University of Missori was chosen to be the basic program. t was tested with sample data to determine its existing capabilities. The reslting otpt was analyzed and the program was revised to prodce improved otpt for firm financial evalation. Two types of otpt are available: 1) individalreglar, and 2) individaldetail. An example printot showing the format of the otpt for the individalreglar report is fond in Appendix B; an example of the individaldetail re port is fond in Appendix C. Composite average reports can take on the format of either individalreglar or individaldetail otpt depending on the detail of the inpt data. n total, considering that otpt can be individal or composite grop average and reglar or detail there are for otpt options available: Option. Option. ndividalreglar Reports. Composite Grop Average Reglar Reports.

48 43 Option. Option V. ndividaldetail Reports. Composite Grop Average Detail Report. (Option ) This option generates otpt nder the headings of Earnings Statement (by department and total operation), Baiance Sheet, Ratio Analysis, and Departmental Analysis. Appendix B contains sample otpt for Option. The inpt data for this option is sally limited in that accont item totals are sbmitted for processing rather than detail by sbaccont. And, operating expenses are sbmitted for the total operations (not allocated to each department). (Option ) This otpt option aggregates data for all firms or selected firms into a central data bank and an overall grop average is compted for each otpt item. A printot with the same format as Option will be generated for the composite average. (Option ) than Option. This otpt option is similar to, bt more detailed Option contains all otpt in Option pls additional information nder the heading Detail By tem. Also, a second page of otpt is added to each departmental earnings statement, which dedcts departmental operatiag expenses from departmental gross profit on sales to arrive at departmental net profit on sales. Appendix C contains sample otpt for Option. The inpt data for this option is detailed in that item sbacconts are sbmitted for processing rather than accont totals. And, operating expenses are sbmitted

49 44 for each department rather than for the total operations. (Option V) This otpt option aggregates data for all firms or selected firms sing ndividaldetail Reports (Option ) into a central data bank and an overall average is compted for each otpt item for the grop. A printot with the same format as Option will be generated for the composite average. The otpt was improved in the following ways: 1) A page was added to each departmental earnings statement in Option, which dedcts operating expenses for each department from gross profit on sales to arrive at a net profit on sales for each department; 2) Two colmns were added to the departmental analysis page, OPERATG EXPESES and ET PROFT (SALES); 3) Two colmns were added to the first page of the detail by item section, OPERATG EXPESES and ET PROFT (SALES); and 4) Another otpt option was added to the program, Option V, which is a composite grop average sing the format of Option. The revised financial information system is entitled "A Financial Data Smmary and Analysis System For The Farm Spply Firm". 2) A standardized coding form entitled "A Financial Data Smmary and Analysis System For The Farm Spply Firm, Coding Form" was developed for inpt data. t is compatible with acconting records sing the chart of acconts developed by

50 45 the Grain and Feed Dealers ational Association and with the revised compter program. This form is fond in Appendix A. 3) A proposed pblication entitled "A Financial Data Smmary and Analysis System For The Farm Spply Firm, User Manal ntrodction and npt nformation" was developed to introdce the system to interested managers, review the system's otpt, inclding sample printots, and discss the general considerations and reqirements for participation. This pblication is fond in Appendix G. 4) A proposed pblication entitled "A Financial Data Smmary and Analysis System For The Farm Spply Firm, User Manal Otpt nterpretation" was developed to explain each statement of the printot, as to content and comptation, and how it shold be interpreted by the manager. This pblication is fond in Appendix H. 5) Finally, a Contining Financial Analysis Comparison Form was developed to make sccessive comparisons of financial state ments easier and more consistent over time. An example of a completed form is fond in Appendix F. COCLUSOS "A Financial Data Smmary and Analysis System For The Farm Spply Firm" spplies to the financial management of farm spply firms a simplified, standardized, and sable financial information system. This system is capable of making financial information available to management

51 in a timely and orderly fashion so as to encorage evalation of the past performance of the firm and to facilitate planning of ftre operations. 46 RECOMMEDATOS FOR FURTHER RESEARCH Each otpt option of the financial data smmary and analysis system has been tested with inpt to prodce otpt as shown in Appendixes B, C, and F. The accracy of the compted nmbers and percentages have been verified with hand calclations. The accont and sbaccont items for which otpt has not been generated shold be tested with additional sample data and the reslts shold be verified. Data from several ebraska farm spply firms shold be gathered for Option and V type compter rns to develop indstry and other rel event composite grop financial averages. These averages cold be sed as gidelines or benchmarks by managers to compare their firms' activities with the average. The costs associated with the gathering and processing of inpt data cold also be established in this step, these costs shold be reflected in the charge made to participating firms. Earnings statements can now be printed ot and analyzed in detail if the inpt data is sbmitted in detail. However, eertain balance sheet inpt items are aggregated for presentation as a single nmber. Specifi cally, the valation of eqity is presented as one nmber in the balance sheet even thogh the inpt data is broken down into six sbacconts. Printing ot more of this detail abot eqity wold improve the manager's ability to analyze their firms' financial condition.

52 SELECTED REFERECES

53 48 SELECTED REFERECES 1. Anderson, Dale G., P. W. Lytle and M. S. Trner. "Managing the Retail Agribsiness Firm," Staff Paper. Department of Agricltral Economics, University of ebraska, 1972o Daten, Carl A., Ph.D., Bsiness Finance, The Fndamentals of Financial Management. PrenticeHall, nc. Englewood Cliffs, ew Jersey 1956, Chapter Downey, W. David and John F. Martin, "Principles for ProfitA Handbook for Retail Fertilizer Dealers," Prde University. 4. Fertig, Pal E., Donald F. stvan, and Homer J. Mottice. Using Acconting nformation. Harcort, Brace & World, nc., ew York/ Chicago/Brlingame, 1965, Chapters 6, 1, Glass, Max R., "Ten Key Bsiness Ratios," Viriinia Polytechnic nstitte, Harling, John A., "Analyzing a Cooperative Bsiness," Omaha Bank for Cooperatives. 7. Hopking, J. A., P. J. Barry, and C. B. Baker. Agricltral Finance. A draft manscript being prepared for pblication, 1972, Chapters 8 and Kreps, Clifton H., Jr. and Edward F. Gee. Analyzing Financial Statements. American nstitte of Banking, 197, Chapters 3, 1, 11, 14' Moeller, Robert J. and Frank J. Smith, Jr "Financial Analysis and Control of the Farm Spply Bsiness," Agricltral Extension Service, University of Minnesota, Special Report 17, September Myer, John Financial Statement Analysis. PrenticeHall, nc., ew York, 1941, Chapters 1, 2, 4, 6, Smith, Frank J., Jr., et. al "The Farm Spply ndstry, A Report on Opportnities and Problems," Agricltral Extension Service, University of Minnesota, Special Report 15, September Smith, Frank J., Jr., and Ken Cooper, "The Financial Management of Agribsiness Firms," Agricltral Extension Service, University of Minnesota, Special Report 26, September Vnn Horne, James c. Financial Management and Policy. PrenticeHall, nc., Englewood Cliffs, ew Jersey, 1968, Chapter 24.

54 APPEDX A (npt Coding Form)

55 5 A FACAL DATA SUMMARY AD AALYSS SYSTEM FOR THE FARM SUPPLY FRM by Marice D. Kniep and P. W. Lytle CODG FORM The Enclosed Entries Swmnarize Month(s) Operation From the Acconting Records of Firal For Period Ending

56 TABLE OF COTETS 51 EARGS STATEMET ACCOUTS SALES, PURCHASES, AD VETORY Grain Department. Fertilizer Department Seed Department Feed Department Farm Spplies Department. Other Departments OPERATG AD SERVCE COME OntEB. COME,,, OmER EXPESES,,,,, OPERATG EXPES!S Salaries and Wages Payroll Taxes Employee Benefits Depreciation. Rent. Repairs nsrance Taxes Utilities Advertising Travel and Entertainment. Spplies Professional Services Miscellaneos Expense Page Sa&b Sa&b Sa&b Sa&b Sa&b 6a&b 6a&b 6a&b 7a&b 7a&b 7a&b 8a&b 8a&b 8a&b 9a&b BALACE SHEET ACCOUTS ct1rr.et ASSETS,,,,,,,, LOG TERM ASSETS CURRET LABLTES LOG TERM LABLTES EQUTY,,,,, FOO'rOTES,,,,, CO?i!f!TS,,,,,,,, 16

57 52 TRODUCTO. nformation abot completing the coding form is in the footnotes at the back of this form. More detailed information is available in the pblication entitled "A Financial Data Smmary and Analysis System For The Farm Spply Pirm, User's Manalntrodction and npt nformation". The footnotes and pblication material shold be sed concrrently while completing this form. The nmbers in parenthesis are simply to help with ptting data into the compter and can be ignored by yo. All vales can be recorded on this form in dollars and cents (that is, yo need not rond off the centa).

58 53 (1) t. () () () () () () () () () () () () () () () () C'l" Cll Sa:! Cll Cll _..4 _. _ _ _..4 l.4 Q = ti 'iii,, G. 'r4..,, )!,, l ti G. Clll t: :f )!..,, g ti ti! Cl) (.) m tl ""! ;! ".,,.,.c: M Q 'r4 CD e r'4 CD =' Clll ll s.c: M O' 8,, 'r4 'r4.8 i. 2 Cl) :z; 1'4..4 () ', co \ (). ', 8 8 _. _..1. _ Clll d 'r4 Clll

59 54 (2) 1;,,,,,,,,,,,,,,,,,, C C C C C,,,, C Cl) jlr; Cl) , Q a..,,. Q ;i "ts t.,, Q) "ts. Q Q.,. l Q CO.,, :! 1 1 C: Q) "ts M Q 1.,, Q t' Q po, po,.4 Q po, Q t'. CJ CO Q l Q Q Cl) Q Q Q) po, Q Q po, Cl) Cl) Cl) Cl) po, ti,.,, po, CD!!., Q Q.c g.,d Q. P4,d a a.,!.g.3 Cl) f4 ra: M Cl) t! \ C '\ '\ C ', ' \ ' '\ '\ '\.. '\ '\ '\ '\

60 55 (3) t,.,,.,,.,,.,,.,,.,,.,,.,,.,,.,,.,,., Cl) i Cl) e...4 4' to t' " " ::s J 'tj CD " 'U. ::s. Q. ' Cl) t' '8 'U Q,&: 1t. m.::a Q CD Cl) Cl) to t:.. M at i a e 1t ::s.:,&:! :". :2 " Q M Cl). t ::s.4!..4 j! ::s Q Cl) CD 'U "! M Q e Q :r at :! = J :. Q M : M l"4,.,,.,,. co \,.,. ' ' " ' ' ' ' ' ',. ' ' ' ' ' ' ' " ' ',.

61 56. 4 TEM DESCRPTO DOLLAR VALUE (888) OPERATG AD SERVCE COME7 (4) (878) Grinding, Rolling, Pelleting, and Mixing Feed (4) (879) Cleaning and Treating Seed (4) (88) Cstom Applications (4) (881) Eqipment Rental ncome (4) (882) Grain Storage, Handling, and Drying (4) (883) Trcking Operation ncome (4) (994) OTHER COMES (OS) (989) nterest ncome (OS) (99) Finance Charges (5) (991) Dividends (OS) (992) Rental ncome (5) (993) Gain on Disposal of Fixed Assets (OS) (198) OTHER!XPESES9 (6) (195) nterest Expense (196) ncome Taxes (197) Losa on Disposal of Fixed Aaaeta (6) (6) (6)

62 57 (Sa) M. d. '. '. '. '. '. '. '. '. '.. '. '.. d f: C). s.. 11" ,,,,,,,,,, ,..,, 8 M M M M M M M M M.. M..... M... M. M, i \. M.. l, en., Z J, en.. P'4, f>o4 r M en s P'4 Z t: en M M i s en M e3 B 3 Q en en J B M J P'4 Me :3 l f:. Q. Q M cj M J.c M. M M M 1 f: e en t en M, C) ' g. C) C) M.. M M M M M.. M., M M,,. M..

63 58 (Sb) '. en d t Q ii ct. d Q t \ \ \. \ \ \. \ \ \ \ \ \. co. co co.. co.. co co co co co co,,,.,,,,,,,,,,.,, co \.. en,.,.,, z.4 en..,,.4 f"4 M = en l t:.4 t.,! Cl) rs g., t s.4 ZM B en l, Q en.4 fa Q M.. j., ;.&:., M 3. cs M, Q M en 3 s M Q. M co \ '. M M M C C) C) C). M M M C) M.. C). ct

64

65 '. en ti Q \ \ \ \. \ \. \. \... \.. \. \ \... 6 (6b) n Q ct'. 1 t Q CC)..... " G.,.. t'.,. G.c = : \ G w! e "O M. = 1 1 a r: t. e w,. = a en B,! M. i :, a t' a., en =' = 1 "O 3 en :!.5 w Q. O i e..4 ='. r: ='..c 'PfM :r O" i.. t.c, w M M el,, '. \.,,,,,,,,,,,,,,,,,,,,,,,,.... '. '. '. '......

66 C"". d Q ti. 61 (7a). '. '. '. '. ' '.. '. '. ' '.. '. '. '. '. ' e d Cl Q. ;J: C"" C"" C"". C"" C"". C"" C"". M.... M M.. M. M. C"" C"".. M... 1 s tj fl) fl) = tj.. " = : llliq fl) fl) i = i! a M tj t M tj tj fj s " tj.4 s. ;! tj 111:1.4 fa g R M a g M.4 D 1 tj i.. fo fl) tj.4 tj! M tj tj.4 :. :3, :. :3 :i M = f ' s '. M. M M M M M ' " ' C"" M M M.. M... M.. M M. M ' M '. '. '. '. '. '

67 " Cl) d Ci ==a C/)11' ct 1 ==a Ci 62 (7b) ' ' \ ' \ ' ' ' ' \ ' ' ' \ '. co. co co co co. co.,.,.,.,.,.,.,.,.,.,.,.,.,.,,,. Cl) C) = = Cl),. en " t' =' sa: en Cl) = ".. i "" =' t:,:i e. s,. t3 " i s::. Cl) Cl) sa: ll " =.4 w,g en sa:i ti.. "". ==a! t fo.4 C) " 'fi :.4 ". :. " ' re,:i :. = :,:i " 14 s ',,,,,,,,, " ',,,,,,,,,,,,,,,,,,,,,,,,,, ",, co ' ' \ '. ' '...

68 ,,. al fl) t. g1. al a Cl. 63 (Ba) ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '. '\.. '\. '\...,, '\. '\. '\. '\. '\. '\ '\ '\ '\ '\ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, M..., s:... ", t G. en Cl). ",t: fs. " al CD il4 p. CD go a. i " M Q G = en CD " CD t CD en.. G M e. t'.. c:i, CD 8 go B s:.. g G. fol g en Cl).. " = 1 en. en. ::. i., Q M lls CD G en CD G,!,.cl.c:.:,, en 13 M s Q M en 4 \, CO \.,,,. '\,. "",. '\,, ',. '\ '\ ' ' ',,,,., ' '. "".,,. "". "". "". "". "".,, '.,, "",, "" "",, "",, "",, ""

69 '. Cl) 64 (Sb) ti A Cl) ii,. E ti A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \.. co co co O') co O') co co co O')... co co co co co co,,,,,,,,,,,,,,,,.., 1 ll llo Q C:2,. llo t :, Q Q Cl) Cl) : ll Q tj P"4,t: Pot P"4 l E "O p. ll & Q!. Q ' Cl) Q ll Q E ll Cf. P"4 P"4 Q P"4 t'. llo llo 'M ll llo B : Q i 1, Cf. Pot Cl), Q : =' C:2., ta C:2. P"4 e P"4 Cl) P"4, A Q 5, eo Q t!.8 i! J Cl),.,, 8 P"4 Cl) Pot. Pot \, co \,,,,.,,,, ', M M M M ' M ' M ' M ' M M ' M M M M M M M M M M M M M i M,... M

70 M. 65 (9a) ti. '. '. '. '.. ' '. '.... g "" "" "" "" "" "" "" M,,,,, M ,. ia:a en l5 e.,.., g g.,.. Cl> Cl t M , Cl ::s Clo 41. ll en. a.,! s i 41 "O e en en.:! M "" ', \ \ M, M M M M M

71 '. 1 Cl. Cl!: Cl. r;lle i Cl. ea '4' ' ' ' ' ' ' ' co co. co co co co (9b) Cl!: ".,. ". ". ". ". ".. " Cl. i5 e M g c:s Cl. t. G> 8.. M a., ll:! =' c:a.. &!: ) ll " ts 8 j G> 6 Cl. Cl. SQ M!i1 111 co co ' co " co co co ' "" "" "" "" ' '\ M 111 M '\ M '\

72 67 (1) TEM DESCRPTO DOLLAR VALUE (299) cash on Hand (2991) Cash in Banks (8) (8) (396) Marketable Secrities (8) (3197) Accont Receivable Cstomer (8) (3198) Accont Receivable Other (8) (3199) otes Receivable (8) (3191) Finance otes Receivable (8) (31911) Allowance for Dobtfl Accont (8) (31912) Margin Depoait (8) (33916) Advances Paid on Prchases23 (8) (34917) Accred Storage Charges (8) (35918) lnventories24 (8) (36919) Prepaid narance (3692) Prepaid Rent (36921) Prepaid nterest (36924) Other Prepaid Expenses (8) (8) (8) (8) (37925) Other Crrent Assets ot Listed Elsewbere25 (8)

73 68 (11) TEM DESCRPTO DOLLAR VALUE (38926) otes Receivable on Crrent (38927) Board of Trade Memberships (9) (9) (39933) Land (9) (39934) Bildings and Elevator Properties26 (4941) Accnlated Depreciation (9) (9) (39935) Machinery and Eqipment26 (9) (9) (4942) Accmlated Depreciation (39936) Atos and Trck826 (4943) Accmlated Depreciation (9) (9) (39937) Office Prnitr and Eqipment26 (4944) Accm.alated Depreciation (9) (9) (39938) Other Property, Plant, and Eqipment26 (4945) Accnlated Depreciation (9) (9) (41948) ntangibles (9) (4295) Other Long Term Assets ot Listed Elsewhere25 (9)

74 69 (12) TEM DESCRPTO DOLLAR. VALUE (43951) otes Payable Banks (43952) otes Payable Other (43953) Crrent Portion Long Term Debt (1) (1) (1) (44954) Acconts Payable Trade (1) (44955) Acconts Payable Other (1) (44956) otstanding Drafts (1) (44957) Employee Taxes Withheld27 (1) (44958) Taxes Collected Sales, etc.27 (1) (44959) Dividends Payable (1) (45965) Advances Received for Salea28 (1) (46966) Accred Property Taxes (1) (46967) Accred Salaries and Wages (1) (46968) Accred nterest Expense (1) (46969) Accred Payroll Taxes (1) (4697) Accred Storage Expenses (1) (46973) Other Accred Expenses (1) (47975) Federal ncome Taxes Payable (47976) State ncome Taxes Payable (1) (1) (48974) Other Crrent Liabilities ot Listed Elsewhere25 (1)

75 7 (13) TEM DESCRPTO DOLLAR VALUE (49977) Long Term Debt Sorce A (11) (49978) Long Term Debt Sorce B (11) (49979) Long Term Debt Sorce C (11) (49985) Other Long Term Debt ot Listed Elaewhere25 (11) (5986) Deferred ncome Tax (11) (51987) Deferred nvestment Credit (11) (52988) Preferred Stock (12) (52989) Co11DOn Stock (12) (5299) Additional Paidn Captital (12) (52991) Retained Earnings (12) (52992) Proprietorahip29 (12) (52993) Other Eqity25 (12)

76 FOOTOTES 71 (14) 1Restrict firm identification to the six digit code assigned to yor firm at signp. Thia aids in keeping yor data confidential. 2Record only net sales on the code form. Charges for sales retrns and allowances, sales disconts, and etc. nst be dedcted before entering yor data. linclde charges for transportation of incoming merchandise (freight, postage, etc.) in prchaae cost. Credits for prchase retrns and allowances, prchase disconts, and etc. nst be dedcted before entering yor data on the code form. Freight charges for mixed shipments shold be proportionally allocated to appropriate items. 4Valationa for initial beginning inventory at the start of se of this acconting service shold be recorded on a separate coding form and sent to the processing center. Thereafter, vales recorded are assmed to be for ending inventory as of the date recorded on the cover sheet. Thia vale will atomatically carry forward for the next period's beginning inventory. 5ever dplicate entry of yor data. Yo may enter yor transaction smmaries by colllllodity (lower case lettering) or by department totals (pper case lettering) bt not both. Consistency from period to period is recommended for analysis prposes. 6Shold yo have an niqe department other than grain, fertilizer, seed, feed, or farm spplies, s1111&ries of that enterprise shold be recorded in this accont. Do not record data in this category that shold be itemized in operating and service income acconts. 7Record gross income from these activities. Associated expenses shold be itemized nder appropriate operating expense acconts. 8tncome accring to yor firm from sorces not directly associated with everyday bsiness transactions. 9Expensea incrred by yor firm from sorces not directly associated "1th everyday bsiness transactions. 1 'rhis colmn shold be sed if the reglar otpt (Option ) is desired. f this colmn is sed do not enter vales in the grain, fertilizer, seed, feed, farm spplies, and other department colmns. 11This colmn shold be sed if the detailed otpt (Option ) is desired. The dollar vales placed in this colmn are that portion of the total operating expenses incrred by the Grain Department. 12This colmn shold be sed if the detailed otpt (Option ) is de ired. The dollar vales placed in this colmn are that portion of the total operating expenses incrred by the Fertilizer Department.

77 72 (15) 1,3This colwllll shold be sed if the detailed otpt (Option ) is desired. The dollar vales placed in this colu11d are that portion of the total operating expenses incrred by the Seed De,artment. 14thia colw1111 ahold be sed if the detailed otpt (Option ll) ia desired. The dollar vale placed in this colmn are that portion of the total operating expenses incrred by the Peed Depart11e11t. 15this colmn shold be sed if the detailed otpt (Option ll) is de ired. The dollar vales placed in this colmn are that portion of the total operating expenses incrred by the Farm Spplies Department. 16This colmn shold be sed if the detailed otpt (Option J)is desired. The dollar vales placed in this colmn are that portion of the total operating expenses incrred by the Other Departments. 17ever dplicate entry of data. Yo may itemize expenses in detail (lower case lettering) or make composite entries by expense category (pper case lettering) bt not both. Be consistent fro11 period to period. All entries are assmed to be prorated for the time span specified on the cover sheet. 18Valation of benefits awarded employees of yor firm sch as health and/ or life insrance. 19Prorate annal charge to represent only this period of time. 2no not list employee benefits in this category. 21Do not list payroll taxes in this category. 221nclde the dollar vale and a brief explanation for entries that do not fit accont names in the comment portion of this form. 23cash prepaid this period for merchandise to be received in a ftre acconting perled. 24Make sre that the valation assigned to thia accoat eqals the colmn total of departmental inventories previosly recorded. 25Do not dplicate entries. 26The objective is to arrive at book vale of property. plant, and eqipment. Yo have two choices. The first is to record original cost of Property, plant, and eqipment and the associated accmlated depreciation to date. Second, yo can record only the present book vale of the property and leave the accmlated depreciation acconts blank. Jst be sre that present book vale can be derived. 27Withheld by firm and crrently payable to governmental agency.

78 73 (16) 28eash received this period from cstomers for merchandise to be delivered in a ftre acconting period. 29Make sre that this vale is eqal to the difference of total assets and total liabilities. Otherwise yor balance sheet may be printed with errors. COMMETS,

79 APPEDX B (Otpt ndividalreglar)

80 75,, '., "1 ll ll ll ll. ll C. ll 8 ll "1"" &: ll. "1 ll, ll ll ll.!h: C>., 1:1 C> ll,. o.. ""::t CD

81 iii 1,,.,,. "" O, ,;.,:j ot ot Cl 1 ll ' ' e,,, O 1 "1, O.,, =i. ' "4.,, = "" 1 9.!. OCl).,, CD "4 "4 "4 1.,,,, :::1 'Of "".! ' 1 fc7'1.1 1 C ' t MM O ot o1 ol " Of '. 1.. Q Qt 1 ' &: = t =i ;:.1 e ll, O MO\ t Q "4 t.,,. M El ll' t 9 Q l1 E t = '.!. =i r M!; : : t t to t ot " :;: ::! t \Of t.!. t i 1 ri i!.,., 13., t., " Q " t 8., Q t " Ao OQ 111! HU ' t " t ". kl tj CD., t i = ' t!::

82 iii 1 1\.; 77 V'llO\ ol ' ' ' " ' CD "" ":J, 1.! '. Old' 1 ' " ' ' 1,1,., _, _, _, \DP'll ti ' l.nt r, ' "", 1 r 1 ' _, _,,,.,,.! :;J " Cl 1 e "". " ' H 'i.ao, ". ' =i ;;:.: 1 "", 1 C" t1\ o. =i H otn " 1 =i: "" a.!. t::a:i::.,,., t! \Dl,,.,, Ol O\l\D. '. ',, "" ' 1 Mt<7'1 tnl ' o1 "" o1. t lllla '"" OO't ' _,., 1.!..,.,, H.,, t..,,...,, H.,, Q H.,, H.,, ".,, r; H Cl..,, ' a Q "..,, " Do ' H at Cl HU "., la CD..,,.. '. C) _,.,, CD ".,

83 _, _, O. O, O 1 : ;! 1, C> ' 1 "1., 1 1 t..,,,,, "",.! "1la! O ',, :.,..! 78 ol ;1 1 o: " O ; c o, : :;:i O O M. = t,,1 r o en.,,, ;; O C>lo1..t ;:, 1. "" ' "" "" :i:;: "".! C> ll i' ;i. :J a 4 tmo fl 1,., i ; "",.,.. :a,., ti i ll. :i i "" ll. i ".,, ". llq. Q MU ll " " Zl,., Cl ll. Q.. :i. ll i. ll, " g Cl!;

84 .!1 ll, re1 E q :;1 ::1,. ;; Of r1c1 r1,. 79 \Ot " ' : = ll.! H 1 f f r.,,, : a Ao 1 olil.! 1 1. :;: ;; ":l. :1. : ;: a :id. :1 ' o :?. = o. : T MO\ o.,.. :: t rl :.:=:i: =.1:.!., ll. "" "" "" Ao.! El 9 4 Ao ll ll i! a a Q ll a ll "" = "" a "" ll H ll ll H ll ii ll Jl : = ::: Q U i: t Ao "" HU ll t; Ao. ll ll Ao ll ll.,. ll 1 : ll

85 8!. Gi W i i1, W! ' i ie i: r 1 l 1 L. i 11 ii l.!. f. ; i' f! J.. f;f f E f 8 1:1 a, 1 lzae ::r 1.a= ol:: is!! = 1!E: 2 E l L := i a i: f r ::r l ls i!'.,.,. 31,_, l i 1 11 ; r::. Sf 2.. = 2. &: r:. =.!t " =!! f " :: t 1. ==. i 1 "a i M g a. r: a " 8 " Oii :!

86 Cl) DJC) 81 Vi ot P'l"f CD e 1 J.1 '.cl, en,. '" 1,.! r 1 '"1 OC>f 1 C>f &'l,,,.! g: "" i l,,.,.,. ll r iwo,. C 14 MC\ e CllllPocn.111 ll.,,.,, A ::: ll.! =i: c r.":! ' CM c:r.1 "" CD iii. 1n1.1.ol Ohnl :1.1.t.1 C>f.!. "" :1 i A 8 c C>. C> <.: C> 111 = C> C>.,,. A HU <.: '!ill::: Q Cl) Q.. ll <.: Cl)

87 82 O.,,, 4,.,,.1,1 "" o:l,., 11'1, 4 ' S Cl,. 1 1 i :;;'! = 11'1'.! ', :;1,, r Miil 11!., O ;;;., :3 1 := CD.1 A 1 4 Cl :: = mae., 1. 5? S: 1 11'1 ot :a::..! li:li:i e f; 11'1 r C "" =:. e : = t 1.!. l "" i! ll 11'1 a :: Cl 11'1 s C! Q : Q 11'1 11'1 a: 11'1 11'1 Q 11'1 Q 8 t Q M 11'1., MU 11'1 a l! a:!,., 11'1 11'1. "4 11'1 11' '1 11'1 i 11'1 r:. Q

88 83 iii O "",'""" '"".,,.,, "", ' '.,! ::., i=1111l t "" "" :J, 1 cl,,. i 1 i.! i &'i,.ollrlohdl""o>ll'llldlotl l:j'o"t'1i' ' '" D,, e J h n.11.! 11!111111! '" a Q M., r =:..!..! ' O "" t t H., H ".,. =i ll en en ".,, en " = H ll ll = =i. H f4 "" i:. o " ll 2. :2. im H ll H lllh ll O ll en. cncn 1111 H 111 MM cna. :2sr:f4=::::J::Cl!:! ;,; 5:l, ll : ca.ca.acn a.ocn " ll. lam a.o "" cnmo b.,,_m., t :

89 84 ' 'j' l., 2 : := H H. : e ll M ll H C> r! ct ll H M H., O H ct t: H a = H., 2.!!. : r.!. ll ll ll t ll., l,. 91. t::.,,., O ll ll,,. ll ll ll : : : : E :., M 19 :::::s r. ct U)M C! i':= ct :::::r:; ll ll ll i: ll ll t t,., i! ll ::.

90 Cll Cl Q ' 85,., ' ' t.l,, """""" ''"" ' " """ "" J: 1 1'"11111 ;., O.,. 111, '4'"Jr:i4 "!::: ',,, ::; Q ' '"11 1 ll a ll r: Gi ll e ll Q ll Q ll ll ll ll,. M ll ll C> ll a M Q A &: A M ' Q:! ll i, t: i 2 rj t ei :t a C>Q i ll. " i aam flil ca " a ;::::.::s ll MQe ' PMO. MO\ o Oa' o ::ae: a:., : Cl 1 1 C> H C> O i, 1 1 ll ot ll M a a ti ll Q.,, ll ll C> t Q i ll t M ll M Ot C> ' ll ll C> rl :! r: C> ll ;,: > '. ' i C> Cl., ll t i ll :a:c:ac:a.,a C> C> C>..., ' t t ll t ll :.:::.::t ' ell t t t C>, Cl) ' Cl)

91 86, ' 1 O ; "" "" 1,1 : c:1 c: c:,.,.,, ' ' ' Pl.C t.(!).,, 1 ol ol 1 1 ol 1.,, i 1 1. "" ctl O.,,,, "! 1 "! o ' 1 gi (1).,., o C) OCll ",, ctl 1.,, :1 O ail 1 ' ol r1, t ' 88 (!). r1 ": (!).,. 1..,.;j C!>O lfll 1 "", D t '"l GD.,,.,. "! lfll 1.O.ol. O o1 " ol C) tr!, m1wa1w Mmo. C)., o, O MO\ ll o m. r1 Olilit, 11:1 o r1 (!) =,. 1 "" ' :1 j :1 ol (!) KH '" Cll O ctl O O ' ' " "" ;:1.ol, O o1 ' C) C> Cll Cll C t C> Cll c., Cl) 11:1 C :!..,.,., (!) Cll Cl)

92 APPEDX C (Otpt ndividaldetail)

93 88., > :. > ) > _, : rr: z c J' >. z vc Q. z z V Q. w z _, c c ) Cat :>, ' :>w > >ZZ rr: VO>. s z. vcv : c 'CC z a: c z :r rr:>c <!) : c c : z! Lrr:., z. Ci&. :> c >. :r; c. c _, c,. z c z c rr: :::! : Cl c Q. w c.,.,, CD

94 11 L O l'1171. O.a. 1,,. U"l d O..ca O... '" 4 > '.a o.a Cll.. i ; O 1,._ c.aca :: ffi ""4. 11 i l Cl "f<>t. Cl, ii d dl '" C7't O.. "" '" z.. tz zw z EC. C7't wop ffi Q r oo a. t a: c O tl)q. Q.. O ; '"1. ii :c le, «z z z zi c L a:., c,.,. "" ;: OJ., L..:i '1 ot ::> Q. ::>. Q. ::;; le. c > ii > D, c c. C1 z. w z > J > :;; er z. z ii, z z '.i :1,,,,, Q. zc z :: L z :r L, c ii at.:;,. L... ll UJ D Q. z, a:,. ;! ::> c "

95 11,.""1a,,,11,a,,,,_ L a "". O.art,. 1 " , > :j /,, 1 1 1i 1 o.a "" """.,,., 9. i 181 > c. a,4'.q"1,4"14t.a.a ocacal oq.ati.a 1.'l 11!!! ', _, 1111 l 1 1!! 11!. ti Cll 11..""c:llll<Xltl'"1 i "" Cll Jll,l,.j, 1:..,, Cll z 1;1 >Z w z a:o w. wor a:. Ot' O<Ca. V) A. Z' w "1 : : 11 ll 4..,, "" c.;j i..,,:z:. ; CC ZZ z :'if> ; c, w Cc< <:> 1 il91,:i9111i L :: """ ll!l,/111./1 Q :::> /: :::> a. z c ) w :t[.,, : z '" i:1 ) _, ; lu vz z ) w U. > Q..,,. w c )( )( Z w ) ;s wo. w ) z z )!.z ) z.,, w 8 s UJ owzz w _, :::>! _,. Z><wo )( <:> 4<Cd> <1 t: zo zw c. w.. Q. Q.. Z oz c w we v.,, w_,w_ z, V) c V) c U.V'lJ o ::,>U z Q. ttjv)j Q. ;: croow ccv>ccw1w. ' :;, C «J CC t C ::> U J W > Q. LL U. c J)ZO.V'l><><llllQ.OV' _, Q. z. w c l[ U.1 U. % t G' :) a:: UJ V) Q. w a: a: t ::> t V) a. x O' Q.. r.., _,.,, UJ :r :J!' Cl e, U _, 9 w

96 ,,. ::> a. ::>, V) ' a :;; V) :. c U > ' > D C) et:. V) ;::! 7. w o ' _, z >. > 7 >. V)! C) z z z D ::: s V). C) a V) C) 1: z zc =. z :c ' i C) c V) C).. a V) ::>. V) D D ' V) w z _,,_ V).. V) 11 r

97 11, Cl 41"" < ""rl"".a"1u'l"1rf. " > 1 "1 o Cl cu c w >.!. t 121 e, 1 illi1i11iiil ! 11 < lrf4'h.t ';1.t"1"1cd"11 111" q Cl l 1 a 41 z '" Cl z. tz z zw w w E ota c oc «..c CJ,., o. t r Olin Q. Q :c C <!t w 1 H 4 ZZL ii, c =. 1r1mF11 z j' w w j 1! 1,_ 1 ' 1 l : : : l! l[ c " z w l[ z w WV! 1c. :; z w z ' ) >!: " )( w WW )(, :a. ) z z z V UJ ffi ' ::> co ' )( <C<CCD zo z w.,. z oz w. V we LUU")<CU")C 1 w1w VlZ z t.l.u")> 1> c.t1v')_, acoow cx«w'i.w. r'). C «_, C ::::> W J U1 > Q. 1.L. U, c.j>a.o.za.v>><>ca.ovj a: ' c.c z E ll LL z c. o a:: => ac O' c U J')Q.W'!"«t:)<11tV'1Q.,_ ' z. ::> " ::> w '. C, w C

98 ' "" 4 1 P4 H 1 1! 93. > L,_ z w a,_ c w,_,_ :>,_ Q. :> _, i c,_ Q.,_ z a r O' Cl)

99 c. ',, Cll Cll ""4 CCl lt'pl"pl""4""4 4""4""4 H. " 4111i ' ol '' = :1 > w ""4 H W' i 1 CC Z c 181 > 11 liillllllll i E j 1 1i11"" CC H Cl Oi Cl 'Z Cl ""4 a lg >Z ZU 1 fa. ""4 wo, ' 3 o JC 1 i O<C at.. w 1; :r. :g w &zz.1 ii, c w 4 1!!; S rrrrrrrt 1 ' 11 QV) CL,,! :::) l z w r.,. ; : z z VW z cwzz s _,:::) :;;. r c z w r w _, 7. _, w. U >G. = Cl >( >( c U ww :a. Cl z _,! )(WO Cl co = c. >(,.,._ zo Zll...,,_z oz. c :; WC U V) CV) <C. Cl UJ' w 11'7 1 U V) _, z t>u.. _,, ;:: :. ;=:.A':i'. c J>O.Q.ZO.V>><><CO.OVf _, 'Z.,. \ c 'F.'. w z 4 Q ::> w c U1 o. c a: «:>.c t V) a. a.. E w [ 1. z C'.,.. e,. :::) _, 94

100

101 11 O 4. i,.,(qlll<qc1'1 rf1 oqttt Q 1!!;., a 4j la:t 4i r'4 r4.,. O "1 l l > "" i.,!rl o...,,_ "j " Cl z _, : * rt.41ft_.c'i11" :::1 "1"1"1"1'"1:!l' l : ', _, 1!,., 1 j "::,<""4'1"""f.:";1'1 1.Q <!) Z l""4"'"1 14 O ot Q 11,1::1111:,11., z.. ii <!) 1Z Zw!( O :1.,. ;z., wor l'1 " o. a ' cq o «E t U V) A. c :r ::<!) Cl'ZZW oz &&. z a:)., Cl'\ w O ; :::i"11i1919 ;:: 111 ' ' a. ffi l 1 1 : w 1. Q.,_ ll:. w w er >< >< WW.,, z z ]!;;.,, lllw.,, z <!) w owzz w w. ::> z. a Z><wo <!) )( 4 4' CD zo zw t;: WC WV>CV>.C i WJw Z,,_ '"' w ;;:.' a:.. ' Q. 3,_;!,:tt.!:':; '>o.a.za.v>><>ca.o J :z O' w c,. VW Z z WV\.. w > Q. Q. 7 z C <!) :. : w w.,, z oz. cc r w ; w z 4:1,_ o er =>a: w VJQ.WOQ'.ct:t=><Ct.,._V)Q. w,_ l[ a w,. z Cl C) ::> Q. ::> a 96

102 a a '"4 97 '{.. > w Q. a cq "" cq c z z zw w EU. w CJ, oaoc«.,, Q.,, :c. zzw oz.z.::>, " rr : cx c Q. w c Q. w _, Q. ::) : cx l Z r 1 i i = ; i cx!, _, 11, _, 1:! 11.,, w J ca "" > ex C'l.. z z > f<'l41 '"4 cq '"4 : D Z. " Z4 v> 2 x: e>cx w::) Q.. > w 11' Vl z " c z.. > ex z > z i :. _,.,, z g cx L Q. cx " ::) Q. ::). Q. : 7 Q. CJ z UJ ' r.,. r Cl)

103 11,.. c, t "". 1.,, ;;2 14,,11 J, i 1i, l 1 4 > O,,,.,_,OCl<llr! r1 r< : g, 4. " ''1.41 :. 1"11"11 j.4 ll!ll!lll!!ll! 1_ O "1 ci "1 1:l,, q CU 1!. z z ll'.,.,111";:"": 1. zw.. Y,CJ' a. o,._o w OC«Cl 1 OV A. w :c. ll'.. 1; Clt'.2ZU a. a. Zi :>., ll'. ll" 1"1.41tl"1.,,. L L i,_ 1 " jli1!1jj'il!j ll.11, 98 1 :> Q. :> Ut.,,. Q. ll'. 7 1; w l[ V>W w z w <>Z : z., w >" Q. a: >( )( w z! Jr. w U V!W 2" a w czz w. :> z. Q. Z><WO )( c <C Cl) zo 2' w w 111z oz a.. '"" c z W'W VZ UVl,J '>U w a. ot. W ot. JV'l1 VJ OC U _, W &11 Q. L ccc_,crr'.".jw_,w>o.v _, > o. a. z a. >< > t a. a V> _, a. z.,..c c r..1 z,._ n w a. ::> ot. CL 1 Cl ex ac. ::> w <11 o. z l[ a. w. _! ll'. z a «>

104 , ;;; Cl r1 CQ CQ Ci Cl. U. Jr1 J,., _, Cl 1 J Cl 41,., 1 > V'. Cl tx. 1 1 > V' z Cl a. O '. (1i Q,. i.;j.,, Cl,. 111 Ci _, O "" "1 "1 4 "" 1 CQ r1 "1 w q "4'""1 111 "1 z z zw a wcj w oor a w ffi "" ocm _ V) Q. a. V>%1"1 w,, 1 oz U.ZK:> w, :c. C1 Cl O. S i i _, : 99 ;! t :> a. :> w > U _, >.: Cll a:! (') _, z _, _, w z w _,. >. > z _, 2' V' <.!) z l[ 2':. <!)VO g V a. zw Q, C) _.,, <.!) z CJ Q,.,. w w z :c _, <.!) C' V.:.; <.!)a: U.:> a. U.. V., Q,... (".) z _, t w. V l[ 1 Cl l[ _, Q, a c

105 1 V' Cl a. l.f1"1rctm,."11m""1«1 l'1 V' Cl ftf.4. 1 lt"f1 d j 1 11 Cl.1 : <!) '1 4 >. w. act 41 COi "1 w > z a: ii 1"""1"J''l,1111,j / 1 Q.! : : : j : a:, _, :'.l Cl "4CXll 1"1"41"4.,,act,. act l'1 _, >,.:J "1 "1 ri "1 1 1r1 1 z. a: Cl 1 t z <!). z Z' w w. a: z w.. a.,.&a.op w Q. o.. O' :[ "" 4a:.. a: "1 Q. t x t. % C' w :l<<!)t Ck z z &l oz. z. :> ffi Cl., x V' c '". z.a. ll'141"41"4. 141,.. ;::: '. Q. _, Q. w _, Q. ;;; :c > 7 _, U V' 2. z z WV' V1 '" V', ) 7 z lu Ul UJ _, _, w > Q. Q....,. <!) a >< w w >< WW :a z z. V>W z V> z w cwzz w _, =' <!) z w _, Q. z )(" 8 <!) )( t; cc cc zo z, V' Q. w :1 w.,,_z oz V' wr W U <f C. <!) wtw Z ' w Z' _, > 1 ;;;;,_J_Vl_, Q. Q. O! W a V' Q'. U J UJ W.. C Cl( ' a: f Cf => U ' W > Q. U. U. > a. Q. z Q. V) )( >, Q. V) _, Q. z V\ C1' c C :r w U 7. ct t o ex :::>a w V> a. w o a o: :::> er f V" a.. :[ Q. a w,. <!). Z' _, ::>. :::>

106 11 V a catt... <71 a.. V),, a <71 ;,::. f'. or. " (!) " "" 1 > w. Cl., a "1 or. "1 <71 l. a "" a ':1 "J crl a, > z,., m "" "1 Q. "" l::i 1"1 V Q" f' > _, ci CJ "". "1 z Q..,,,.,,, "". z (!) z % s w :a. a: U wo,. Q. v1 "". f' "1 "1, oo CC'. a, U"j. Q. Q x.... ""J:,,,. <!>t ll:lz'zu. L Zi, V z l'1 <71 w "" l <Qff. 1. ":l OJ, or. "".q L a '1 4 1 l l[ > _, Vl 7 ::i 'Z z n w. w Q. or. er _, w w, " Q. _, Q. Q. V z a. _, C 'Z V J c U > _,. c > Cl.! Vl > > J Vl 2' V Vl (!) w z a: Vl z Vl x t:) z tj (!)V V ot zw co. z.. V w Q. _.,, z :;; z w " z:r _, (!) (!) > er z ot _, <!>a<. L Q. Q. V. w::i w.... z V V lld Q.. _, V Vl on z 11' _,. V, F. Q.,_ (!) (!) (" Cl). ::i Q..

107 11 ;;; L Cll c., Cll 11 11ii4iiii "" 1 L "1 > n Cl " "J 1 1 c Cl. er. Cl c w > i. ii,.rnsi111r1 1c 1111,_ Cll """1":":.f,":,; ":, Cl.l 1 i. 1. "" "1., r i 4...q :; ""!:?. 1. 1Z,_ Z w ::; Cl,.,!l,., EU. w G. Cll.. Ot,. O' W4 OC CK j OV Q. " d '.,_, r r ",_ 1 l m ZZU zi a:., "" c P!O OO _lt'f :;: '"4"" Ol aot er. c r1111rrn f. 11 => Q,. 'Z' z a w r w.. c _, c a: Q, a: w. c ::'. Q, z w 1 _, :: z w WV c ;.. z w :r a:.,, ". >..,, " :: a: Q, Q, )(. w c L )( WU. a:. z z. z "" " w OWZZ'..,w _, => z.. z Q, z )( w co w. )( c.,_ zo zw.. w Q, w...,, z oz c Q, "" z "" WC UV) V) C L. w " w.1w 'Z' WV).J, a: z i>u a: c. _,. V)_, Q, Q, Q, Q, a:oow acv'jatwj&w " )( le. w.,, 4'U:C:>W.JW>a. c J>G. Q. ZG.V> ><>CA.CV> _, a: c. c a: Q, :r O' C 4 a W U &A. Z 41 t o ::) (K' c a:.. a: Q, ' r Q,... w a: V VQ.WCJG: t=>c V'Q.E. w :c ' 11 ". C' z, '

108 13 Q. "1 > 1: , J., lff a Q :: l acl J, i i. c > c Q\ _, s.,,, a1 _, _ = W >< CD Cl cz s. c. C.,, WW> ll:.::.. t:; t:;;.,, ' ll: <Cw z. CDC W w 1>&&1.nz z lllu>. e><co..iw CA.Cll:.M>CGC. O!! <:>.,,! ll: z ::> a:oo ww. ZUW", c l&.ccow c!i c z l;::l::l oww > Z44tC.,.O!i co Q\ c 5 ::> _, oa.,, OJC. owo U"1 :rz 4 : :;5, 41t:)Z:>&a:. a 1 : iii a 4 d jl a a '"i 1!.:i :;f, 11!1 1 :!J.!. ::>.,,z w.,,.,. ll: Wll: :z:w ::> 'a c.,, <:> ' ; w ::>c Q, % '' O t:; w w z Cl c c..,,.,, zz w cc z cc wz z w 4vtO.w w! MWQ.W>Ca:. wa:: z _, <:> z <:> D ll V Cit ::> ::> Q, ccwooo w>mo. _, c._>w. r wz:>z4a: :,i.. z 1% : w <CCWOUZU_,., Zatzt. z z ll: oc a c <:> o :r r e c w o_ C &J c c ao:cci.o <:> a.o c ::> ll: ::>

109 , z _,,.,, >" _, :: CJ w oz Q. oc e :r ",_ c:iczw :i.,, '",_, ' Cf., 1 Cf. Cl,_. z w Cf. a: :>,_ w V) V) w,_ J CD _,,,_ :> a w,_ J CD 8,_ a ':) a :> a,,_ >( 1,_ :1 jf W ;: w 151 lol l! 1.,,g 1x;1,_ D J : >. w >O,_ ' : ;;; L o r1 w > D z,_, D z w > z V z w W. _, 8:::; :>. V).,,,_ w rc.ja.w 41 Cit &A. ar: :c at.ljwuj<ct (!)U&l)U.. w > Of '1 O'.2. w _, V) Z' z :>. V) n V,_ z V :C w,_ a: a ' ". ow oo :> c V z OOS'W CQ'.UJWQt:C Q'. U. WW C( C>LLV>U.,.CJ D z w _, _, w w > a a 1 w l[ z V) D!'5 z D z Cf.,_ :> U,_ w z. d 4.a '1 L >' D V V D V z w Q, >( w z., J V V. z D z :>. w z 1 "" 1,. :> a w :> Q, :> UJ c l[., 'Z D z w l[ 14. O> CD. >

110 .a.a (i Q c,.., c1 Q, "' '" "1 i ;j. > w li.,.,..,. 1., J cq :1 Cl 1 1 ;j l,.a rl J.,., "l..a '1 1.a e> ". Z "!: 15 ',_ r._,,1; ".. "J. d Cll cq, J J V»O._ '1. o oolz >1 C) 'Z 7.;. ', o(.,. O't q C), Q q z wz z > «1 "1 1 z ".,. ic 4;, 1 oz(j\ V oc, g1 " 1 w.a Q. d 1 q oc ' '1 " " >:Z: Q :itz> 1 wzw oz "=>.,,. Q, o 1 :r l Oi, cc 3 Q Zt zz, w.')> q J d '" "1 "J.a r1 O. ", Q '1. q. i.> 4 q ::> '!r V w z :it w Z' V :it c. «w. w. w ::>. ii V 'Z z. w :r w :it w w x :it O> w w w 1., V. " i!

111 L '!: 4 G. _,,_ Z ' _.,. ZV>.,, CZ D W Q. Q. )(.a 4 4 i l'1 "" 4 "1 1,..,, 4 4 1! 16,. > a: z _, 8. :) Cl).,,f; VJC 881 \!U z _, Z> wz <> U w!, Q. l., z.l:z ::;!J i! l Cl Q. W C7 :ii z :a. a: Q. c a _, Q. : lw a: 1,., o, Cl)

112 ' L c 17,. > er 1411 ilii v 4ii w Q. Q.!.. z U 8: Q. to, U" :) o ',. ' v.,! > U Cl U c.,, om,. c w.'%" c z. c c «<C zw aw cw > :t> w :'i w i j3:,. c. z,_,_!z L ;izi L o.., 'CO ce L ''% ' w z Wiil a.,_c!r C aw,.,, ; :> ll:c: o U.O w z U. U C> a a. ::; Ow Q. ZJ&CG.4! zc Q.Cl'tQ.V) l[ 5ca. G:Ca< )(WV>Z o.,,s ; a. r o.t.,., z.,a. w )("" c Q. o z Z UU'JZO,. za : czoa.z.: a. zc wwa Zw zw w4tzw :r : &l.:ov>. :t w o w oo CJ ;;a:i!i;z>z::c!am _,o,.

113 18. > " 1 Z' w a< U,,!. z w..op' oq' a<. > OCD Q. 1% ll Q: z &&. oz &. WE=> c, er;. w z c a< w Q. z U ) w CL ::). Z' ) z Cl) z e, z w :r :r Cl,

114 ' 19.,.. > rr i ; :c : z >: r r,.,..

115 11 o() W\.. > o > om _. :::;; ""c o.. ;r '",,. '",

116 111. >. oo >. Olll ;:). w :r,., gl iiiliii1lliliilil4iiiiliii 1 _, c, _, Q. c :r E Q. z :r, i! Q,.,.

117 APPEDX D (Prograa Liting)

118 113 r. Cl..., e ',, ;;;. ). s ) t: kl ). ) ) t.,., "" ) '. e. e O O ;:;g UO oamu,,o,. "Moe>H e:e.tti= mooohhommmoh mummmcm & )., ll Cl C> ll C> ll V m. U V Q. _. a;o t oo....,. "" o Cl "".. DOO ia. C> oo ll O CO 1 U UH C U PO C> O "., 111 "".. V "".. o. :: :; ti OCllU o ll Cl. U<>Cll Q.''""ll,. tt t t t:

119 114,,,, ll M ll U m ' C oc Q M C> "., V).,_ t:!l, "" " ' " \ H.,,. ' '.,.;;:; ' g C> ' =i ll..,.,, ". " l:l 2. ". C> C> ",. C>.: "...,. U<ll i.l w H \ : \ \ M a. \ C \ t H C>. O. C> C> a: t C> tl ' ' ' " ' ',,_. e._ :.. t :=:;.,, CM M C D ".:;; H, :g i? oo C> UAo e e.., UM.,. " Cl) O a. Cl) Olli< OllU, " Q C U U M _ C ',_ H C> 1fil = O ll :g e; :; " ".

120 115, g Oi' ll '"1 ll., "" CD ll = t Cl ll,. t::i,.,. 'ls!t C>. a l'u iio' OMfo<,.,, Do UU fo<., aa,_... Q :: ;:: d.,,.. OU o,, = Cl io., UDo U.,. Cl '...,,., M.,,.,, o= DoO.,. o, ll Cl o=,_..,,., Cl.,,. lj

121 116 / ;;;!:2.. Cl)_. a ;! ::. S91iC) U '", tii.1a UC MU M lc Q ooo C Q C a. C> C> C> C> C> C>,,. C> Q. Q. Q Cl)

122 117 l! C) C) C) C) g 1:1.i., o _ C) t=. _ ':ii, UM..,_.'t::;,'. "!. t=:., QU QU, _...,,. ll ll =. l =,,. =.> o. m..,.,._. 'D.. D.,.,. o UH. _,...

123 118 1'l :: ' f;.,_ Ulll :: t ", '4 D v ll ::1 ll. v :, _,.. ii UM s.. 5 :: iii., e 1:: 1a, ao = 13,, 1,.,._ ll E ll,.,,.,... ',., ao,.,

124 119, ll ). fw')dtlho,.a>o,.,,,.. ll'hl'ht" 11"1 ),.,...., \,. CD O' o.,., ',. Cl) ' " ' ' ' '

125 12,., C,.; E., /).,., :>,., : C li /) 1/) CM '.,,,.,,

126 121 t:l t Q a t =i Oi M,,, \Q,_CD M M M Q., M M M M O\Of''\ ""

127 122 C> C> 8 C> ti CD O :=, CD ll. '..,.,\O,CD\M"ltO " ' " ' ' ",,,,,,,

128 123 U : Q. Q ' t Q i., :a " i ll

129 124 " e C> ll )!j c ) ll C> C> r.. ) C> C>. ) ) ) ) C>. ) ) ll,.,, " ar: Cl) a:) 1.,., o. MC n 1tr c::a m1 lkl a:, : ca rna'1, Ct fl) 111l al Cl a. ar: al :a: aro c:::ticc OU.ce>o.c lr:mft, M QCCMO en o..., ) ;:;. la...., )

130 125.,,. C>.,,...,,. :a.,, f!.. C>.... w ::1..,,.,, DU.,, 111 Cl) Cl).,,.i 111.,, llh HMlllll.,, ".,, C> en 111 M.,, :;::;.=== t:jf4ac) ll Oe>.,,.. mm,,mo. MCll..,,.,, en. C> c:l c:a. V> cnac. Cl)f:l,eaJCl).,_.C> OClll! o :: i:uolji"" ji"" :::i=.,, C> : i'!ti= 111 M.,, ::i lil.,,.mlm KM UM 11)1!)..,, =et::!lc:!lcc t :i::: t::a: t:: =:s:==cnc. C>MO::MOMllClllll:iM._llC.CGllUDl:DMtC. CU)CE(MC,,V)2: Ctf4 t:j"4dettt.mli11 "M C) O OEt:JA.tCl4 aia:1.ia:aocnmt1 om.a. ommhoiaa.. OUO " ,, C> " g;cno.v> :a '1.,,

131 126 " s C> O. C> ' o C>.,, Cll Cll " "" <>. C>. C> C> :::;;::;i ""8.. :::t!.,, =MC) o &; Cll Cll <> CllO :i. "" C> 1:1., ll C>...,, a&a.im O.,,.,, r:aa:: C> ii e:t ""ili: O.tt. DCtHn.c:a ll tmco a '::.,, gm a.a. OOAC>O.,,.,, ;;l.,.o : OH o Ua.it ')1 MM : inn;::., C>C>Cl'tHtt Ci oaa oo a,ma.ia.o.o. o. aao CllUOlll,mlQ U. v., ill QU C a.a.a Vl M H CG. i ; 13. =:::::;::==:i;::::;::: Cl) MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM

132 127., C) C) C) C) C) 8 C) !: ti ' &: Ml:>.OW = m LHl' : Q c:> D ' OOa a3 (l)um emott o a a._14 mm,oo m oo.o.o.o pi.:,, CQQQQ D U D mma:i mm CCCl:>C ll......!: ;ggs;:;:::

133 128 \ " s ii:l' ll ll

134 129 CJ> ,. f<lll Ulll. ' ;:; " ' 111 ll., Q :PJ ll '.!: ;:;.. ' ll o.,.

135 13 " "" g. ' " i:. 2!2 iiq kl ii! a,.,.11\,c)o\o l'ho o. '""" o., " ' ', en Oii "" "" """""" "" """" """" "" """" """" """" ""

136 131 8 ;;:; Cl) Q El. o,,,.,..,,. Cl) :. o..

137 132 " ) ;:; s L1,, CD O'O_,.,,. \ ' o. ' \ ' \ ' ' ' ' ' ' ' ' ' \ \. P'_P'_

138 133 g '., Cl) M tj a., o.. "'..,., ' o..,,,,,,,,,,,. ". Cl) ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ;;.,. Cl) :c "", <>t< U, Cl) b O.,_, "" a WU., Cl) bb o 1 t:: o.,'. otl OO

139 134 C) C) C) C) g i4'. :!. ti. oo., &n\o,...,,.,,., 11'1 11'1 11'1 \OOO\O

140 135,.,. " g. "" Cl ;:, C>. " ""!:!... O\o.,. ',,.,.,. CD..,,,,,._CD CD CD CD CD CD CD CD ' ' ' ' ' CD CD jq

141 136, 8 ) io "" "".,..,,,.,.,, _,,,_.,«>OOll"l\O,CD.,,o, ),,,,.,,,,,,,,,,,,,.

142 137 e iio M CD,,,,,.,,,, e,., CD,.,

143 138 O e C> C> C> C> C> C>. M. : M ' Cl) ;! &! M e O,Cl>CJ'llO.,,,.,, M

144 139.,,.,,.,.,. _,,,W'\. 11'11 e. CD CD.,,, tn'ogd ' ' " ",,.,,,,,,.

145 14. J g j;j' e!). rmo. m CD m m CD CD td m o.. D CD m Cl) td td.,,,,

146 141 g :a t. p =

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171 APPEDX E (Operating nstrctiods)

172 168 A FACAL DATA SUMMARY AD AALYSS SYSTEM FOR THE PARM SUPPLY FRM By Marice D. Cniep and P. W. Lytle OPERATG STRUCTOS FOR THE PROCESSG CETER

173 OPERATG STRUCTOS 169 To facilitate the discssion on operating the financial data Ummary and analysis system, an assmption is made that for sets of financial statements will be generated dring the first calendar year of operation. A case example will be developed assming se of ca1endar year Firm Responsibilities All inpt data processed mst originate from the acconting records of the participating farm spply firm. At best, otpt information can be no more accrate than the inpt data sbmitted by each firm. The compter program initializes every firm's operation with zeroes, The firm has to convey all information reqired to develop an earnings statement and balance sheet from this point. Data mst be smmarized according to the chart of acconts dicsaed in Chapter of this thesis. t mst also be sbmitted on the standard code form shown in Appendix A. Contining with the assmed case example, each participating firm has to determine the vale of its inventory as of Janary 1, The dollar vales are placed in the colmn titled VETORY on pages 1,2, and 3 of the coding form. The only firm idantification placed on the code form is the six digit identification code assigned to the firm. The firm shold date the cover sheet Janary 1, 1974 and send it to the processing center. Throghot the three month period Janary to March, each firm mst maintain adeqate records so that on March 31, 1974 they can complete the coding form to smmarize the three month period. The cover sheet shold

174 be filled ot to indicate three months of data, fira identification code, 17 (2) and for the period ending March 31, The coding form hold be completed and sent to the processing center as oon after March 31 as possible. t is possible for any firm to sbmit their sales, prchases, and expenses for the month of Janary on a separate coding form; likewise, for Febrary. However, a complete form of sales, prchases, and expenses pls balance sheet acconts and inventory valations is necessary for the March 31 coding form. This data sbmission cycle repeats itself for Jne 3, September 3, and December 31. Beginning inventory valations have to be sbmitted only for Janary 1, When processing contines to the Janary throgh March 31, 1975 period, the ending inventory vales as of December 31, 1974 are sed for beginning inventory valations. The time restraints on maintaining and sbmitting inpt data and the reqirement for accracy on the part of each firm cannot be overemphasized. The compter processes jst what it sees. Garbage in garbage ot. Processing Center Responsibility The existence of the financial data smmary and analysis system mst be made known to the potential ser, the farm spply firm. Appendixes G and H contain two ser' manals. The first manal introdces the system to a potential participant discssing the system otpt, inclding sample printots, and general considerations and reqirements for partic

175 171 (3) ipation. The second manal takes the participant step by step thr the printot discssing content and comptation of each statement. All firms showing interest in the program shold be given copies of the ser's manals. The processing center mst assign a firm identification code to all firms wishing to participate in the program. Thia is necessary for machine processing and also to aid in keeping data confidential. A six digit code is sed to identify each firm. The first three digits are sed to designate the conty. n ebraska the codes wold range from 1 to 93. Adams Conty wold be 1; York Conty wold be 93. Digits for throgh six of the identification code is sed to specify each firm within a conty. The first firm signing p in Adams Conty wold be 11; the second firm wold be 12, etc. Contining with the case example and assming that each firm has filled ot the coding form for beginning inventory valations for Janary 1, 1974, the compter cards for the valations are keypnched from the coding forms according to the specifications listed on pages 27 and 28 of this thesis. These cards are verified and placed in the Prevos File in ascending firm code orer. This is the only data in any of the files at this time. o compter processing will occr. f any firms sbmit data on a monthly basis, the sales, prchases, and expenses can be keypnched onto compter cards aa they are received and pt in the Crrent Pile in ascending firm code order. As soon as the March 31 data with the balance sheet entries and ending inventory vala

176 172 ) tions are received, it can be keypnched and merged with any data that might have been placed,,earlier in the Crrent File. When all firms have sbmitted their data for Janary throgh March, and the data cards have been prepared and appropriately filed, a compter rn can be made for individal firm reports. The job control langage and inpt decks set p for this rn on the University of ebraska compter system is listed in Figre E1. The parameter card mst be coded for this rn as explained in the compter processing section of Chapter (See page 24). A set of finan cial statements will be printed for each firm that has complete data in both Crrent and Prevos Files. After it has been confirmed that each statement printed in this compter rn is accrate, a composite grop average report can be gener ated in one of two ways. An overall average can be developed for all firms having complete data or a select grop of firms can be chosen for Which the average will be compted. The latter method can be a>re sefl for comparisons if the compted average wold be for firms of similar type operations. To select a sbset of the participating firms, the identification codes of the firms to be processed mst be listed in the Master File in ascending order. The Crrent and Prevos Files will not have to be modified in any way; data is extracted only for the firms listed in the Master File dring the compter rn. f a copy of the grop average report is desired for each participating firm, the nmber of copies option on the system job card DUst be overriden.

177 data deck See page 27 (f GO. CURRET DD * data deck See page 28 r//go.prevous DD *. 173 (5) l l l data deck See page 27 //GO.MASTER DD* //GO.SUMMARY DD SYSOtrrA, //GO.PRl'lfl:ER DD SYSOtrrA f GO.PARAMS data deck See page 24 DD * sorce deck See Appendix D l //PLlL.SYS DD* //PLl EXEC PL1FCG,PARM.PL1L'256K,EXTDC',TME.PL1L1 //jobname (accont information), 'identification' Figre E1. Job control langage and data deck order for program exection of the Financial Data Smmary and Analysis System.

178 The next compter rn is made as soon after Jne 3 aa all firm data 174 (6) is received for that period. The compter card deck is again set p as shown in Figre E1. Varios codes on the para11bter card are changed to specify appropriate information for the compter rn. All new data that has been received since March 31 is keypnched as Per earlier instrctions. Data that was in the Crrent File for the March 31 rn is removed and merged with the data in the Prevos File. This data is kept in ascending firm code order. All new data for the crrent three month period (AprilJne) is pt in the Crrent File in ascending firm code order. Balance sheet accont that are moved to the Prevos File are of no vale for ftre compter rns. The compter simply reads the cards and ignores them on the basis of their code nmbers. The data inpt and compter rn cycle repeats on a similar pattern for September 3 and December 31. One final sggestion for operating this program. Compliation of the Sorce deck is qite expensive. To avoid this expense each time the Program is rn, it is recommended that the sorce deck be pt in load lllodle form. This stores the compiled program in machine langage form so all that is needed for the compter rn is exection of the load lllodle.

179 APPEDX F (Contining Financial Analysis Comparison)

180 176 A FACAL DATA SUMMARY AD AALYSS SYSTEM FOR THE FARM SUPPLY FRM By Marice D. Kniep and P. W. Lytle COTUG FACAL AALYSS COMPARSO FORM

181 177 _.,..1.q _1.oo ""iiii.,. _,,. '":'!!:. llza "". 1.oo llz HZZ ef Dollar 1 or 1 or Dollar of Dollar of._ _,,_ fale 1 '" n C.& ila T 11111, or '" & t""" n1c.,,. "nn.q ".\. af.n.on.. o ll.117 """.. n.._.,. on..,. 171.,.. nnn1 on.,.. n. " '. L.> n. " ' '2.o n ' '"',,... 'n n.o. ',,,. R Coat or 1.A1. ft ai l :. ' '.. Of llell 1 ar Dollar of Dollar of H ai _,,. Yal o. al a. &.1 '" 1... M.11 a.,. '"a.a "" "" A<ctaa, 1_,_.:i= ltil llza ma 1123 llzl 1nn.n. nn.n l,, 1 n. " " J' '.,.' 1,. 6.,... ",, t.o >.H. ',.,...,, 1&1..,. 1.. n.n 17R,.,. oc' '". 11 6,1.. ' >. lltulti.,,. '. ' Ue.,, Tra. '.., ',.l 1. " ' '2. '. l 1. Prof t ca.,,....,. '. ' U llell.ai...,..1.. "". 1.,. to.. ' ' '"

182 178 lq lq. AcC'8tlq hr1< AcconcJ.Aa Perioc Acco.att.aa hr 196! llzr 1971 JtlZ m Dollar i.!.:! Dollar Do.ar or llollar of Dollar Of.. _, _ i,al,,,, iee.e n., hnn.o ' 11V\,Q MD_ r, be&ijmx:.::.. of Doll kl ai " _]ll """ t O n,,. " ".., 1 6, o. 7,2,.,. :7 &en. ta & ,,,,. a.a,oz7 7, " ',,,,. 5,n a.&:wail& 3'.,.,... ' ' U2.6lO 12. 1o l.c,. AccOiiMt.q 7 6)5 952 Colt f. ",,,,,,. ' it AclqlO Ac... Acco.aU.A hl'1c lko ' lnn,o 'M """.n t,. n,., 27,7 " '.HO 69,U H ma 1'71 llzz HZJ ai n. YalM.ai.ai Yal, n hl,,.,,, " '. ' ai oor or Doll Do.r Do1.l.iar of Dollar of of Uoll, '.a,.,,,. "" nn,q,,,'. _,,,, 22,.. 7Y " ' Lari., '",,.. ',. Po 11 r 2 _, i l 11 '. l TA ".,.. «11.t..... """ac to m.,,., t " ' ' 1n.n 21 ', n _. 1 ], ' ' ' '.. "... '.. "" ' '.. UtUltl, 5, 11 ', 1 " Adftl'tia ' Tra'l D&erc.1c,, l.n,5 '. '.,n 2,n,,.,.. Profe1 lorric n. ll) 1,,.,. 1n1,. " ". 2" n. n, J ht&.t at..,.,,, 71,. " " ' ]O, "

183 179 tla1 ' ' tlaa Allll. TATDar., tlaa AccoUc hrmm el DollH Dollar..!. er Doller.. 1J.r.: m11!'71 1m 197} el ll _, _,_ _,.,_,_.i ':&' ' Liii or " aa 1.aa 1.aa r.rlo< la l!z llu llzj _. ol Do.ar of Doll.or ol,_,_ aar el. er, _ el. Yel. c n, YalM lllrooo 1 H '.... c.. UtUtt Ta..w. Tra. ll...,.... To<&J..,

184 18._._, ::a.,,._.'"" Acc:ct.aa HM i :."::" ll. 1.z _., J, '!1.o 711 UJl.n '. f 7' R& >& hr leu ll == ll Dellar or Dear,_ ".! er._,_,_ ' 1.1.,.,,. ' ", n,. WO,,,.. n, n " 19.J "". >.U " ft& 1.llft ".... 9ft&. 1., U_OA.l n,, '" AC n.,..,, _.,.,.,._..Zll ::.,.,,., '"" :. lellar,. :::r.d.n,._,,_,d D M, o.l...,., z. ' 2, 2. AA.. _w=. ll., ar. er UDilalr & el. w al. 1,,. 7,. L.,.1., _, 1.Z..,,.. _ lft, ' l '. n. ' '.. _.,... t......,. _,,_ ',ft _,_. "" 1 ' '. ] " ',,,.DA,._n,_ " 6 ", n. n.,. v,.. ' '> L<U n.,._., &U '.,. &>.

185 181 ':',. _ a.,. a.arv,.: llzz HZJ, ai Do..r Doollas 119., Dollas er Do.ar 1._,_. _,_ i.:. el 111o1,_ l,,.a, n 11,. " OftO,.n n" ll ll,. no.a. U.,.. & '7A,1. n.,.,. m&.&h,.,,,.,.., n. _ " '. ''".. _. in,,_. 172 llzji 1' Doollar H,_,_,al lo,_,_ "" _!:..7.. 'l.d ".. ia.a 1 JM " ' "" :U. 17n..a ''",! r.,. 1,D n.2 'm,a "".,....,.>. 1 1.,. 41.,.,,.,.._. ' '._,,. ' ' ' 1....,..ft ' v.o &a ' t.la,. T'w'a1 acer.,,. Prof kn '. '' ' 1,J, 2 97 '. ll.. n,18 M '2,] ". '. 229 "" ' DO 1.n

186 182 Ac rn, r.. a.a _ T.r ft Dtblz: UZ 1!71 llzj. Do.ar er DoMU" f Doas er == al DollaS ef 1 or Do Yat _.,_,_ 111a1 lal... ol.. f ai,..,_ a.a "" _ill& a.arw _ill& H n ma.. ' er ef DollaS hl=,_,_,. ""... '..... :lut.w,r....,_

187 183 rv, Ao:chrl.o Yal,_ Yal Yalao. Yal. ''".,.., Ao:tla Ploo r" 1161 mg 12Z 1!7Z 19ZJ :i or _., of Dollar J of o.ar of Do.ar of.!la ' '... '" ' 7Dft n. ',,.,., tonr.,,,._ tbta1 ntt,;,!:'. of ar ld Yal all ".., Lnt. a n.,,.,. '" ' '. '".,.,.. '., "" ' '" Tot1 ica.o "".,. ", ' ' '} ,1 'YM&otw n..,,, " '".., ". M 1.?') ,4 Coit of' i7 Gia & 1.,,... ' ''' '., ' ',,,.,_ ' ' ,,,., lft.,.,.,. 1.1 '" " n.h6,._6.!14 to<&.l _ o.n Ac_.,,_ chsm> a r.no Ao:tc Porl< Aclaa l!t!!'7 1'71 llu UZJ l,. of oar 9:.i:"" of Doar of Dollar 1 or " Valao = &.t..161 _ llroh.,. 2> 1 l>rou M,o,. ".,n l 866 '" " rot al ar.,..., '" ' z.4 l89.617, " 12..,. ". ',. "" ;] 2. o,._,. T L,. _ ''., !i.1..,.,, 4. "".rtca.,. ' 97.& rec.tac, " _.,,. 1.., ' 14t1611 H l ' 9: 1,,. ' 1., t. ' '., Vtlllti.. ' Adnrti.etaa. haftl.111.t.n> ', " ' ',. ". 36 n ', Profo1 coa '...1 ''".,,. al.. ' <'L <L.,. rac 74., 446. '' '.,. atb Prof'it,.. ' 'L. ",5,.,. '. n ' ' " '",,. 6. ocr DCom, n71... tot 11n ' > 4H.J ,,, Ot.. O.,,., H.7 a "1 1a " O ' n let it. '. 1.1! M erect,.,. Qroea 1.,. 1

188 184 1.as 1.as tl.qhrloc Accotia& Perlo Accot taa lr AWC Uft Doller ef no. or Doller or Do..er of Dolln of Total Of!fetal 'l'el lrotal DolJ.&r.,1. ot&l Yale otal Tot 'l'o.l Crreat. AaHt. Ho n 1 " ",. t.,. """ an " ' Caa. 'ULl is, S n on. C<O "" 17<,,, ' ' Marketable lec4 t 4,,....n 227.)44, 12.J bc1abl '6 Ad&DC Paid oa hrch&aae._.. ',,, ' n.o Stora Char "' ", >n.',, " J '."" lddtori '" 4',.,.,. '. Pr id ".2 J. A'Q Otb.er L.t. c... '.. <.L, &161 llzll UZ& 1272 m. l.od.,,,n Tot rrt t. 1 '>1 ti.. ' n.< 17 " ' ". "" ' ldyul'a Otber M1a Ul UQ " J Otblr 1. t 7< J.n Totol Te t.,., n >.n Pr t P &all' am &ai.n lntaaibl '".' "" '" ',, " ". ',.,,..n. ".n "". 7..o Total AHat.a rnn.o tvreat Lfa1tntt1 1.,,.. " accte n.. ".,.. «, ''. ' Ad&DC a.c.1 for 6 UJ. 4 Ace. 69, 9.. DCOM t Pa7ab.L ' 2,. >n.., <n oan '., ". Otber Cwrrr: bui. Un Lon.a. n ' ',.. " ' ' <O ><.n A< Tot. mt Terw L.Ubn1tt.ea n. < "", Lo terw Detlit., 1no. ""M " n.2>d,, " ' n... "., 448 4> n Daforr Tae 4 D.ter Cre111e. <, Tora T buit,. n "" 'l >no &Qtcw 2.,)8 69] 1'1."ll _ 'lll onn. n ' n 6 AJl.l D'l'l nn.n.,..,. nn.o To._, L1ab111t1.1CY onn "rn.n. " l

189 185 ATO AllALTS Acco.tta1 Perio< Accotta1,.,,. Ac:coatl.A1 Pertoc Accoatio.1 r.rioc A.cc4.&Dt id Perl.OC 1_,_, H lizq 12Z Jll2 _J2l.J._ Aftra Lh11.idit ltatlo OJ 11 CWt"Ult " Rat o,,...al.]7. loll Livid lotio.n Sol.::w latioe Lla1n.1.1ti U1e " L1abi11t1ea1Liit..,. 1'. " 1.2n " ' " " ft.md hmtell.aitw Profitab11t 7.11 ]l r, '! L : 1 JL J. l CrOll letu. OD S.le1 l ],8 'l.&..o Crain 7 l 11. l PHU he y l S.od l 16.1 Food. l 18.9 l 1li!l.l 1ar lnnltea l l l "ber o.na.t 1.o.n 21.' 1n. Q l 1. B.. " '.. " ': 1 l 1.1 J: 1.,Q J:, Ratvra oa eroa1 toe ' " l, " : 1n.' n,, : l let ltatna ftft AeHU 1n,1 z 19.] ] l. l 25 l Jllit ltetra oa Enity '" '. 2. ttl11c1lleo lattoe 1.2 ll. " ] 8 ".2 Avera DTmtor TnM>ftr n. _' 12.5 Cl.Q " ' n l Pectili.aet" Sood l 6 ". '" L '"" 7.l Pat'll 8nnlia1 6.2 ' ' ' 5. '. ' ' ' 1 '.'li,, J :,, l ' l a 1 ktio1 Other O.eert AYr Co lectioa Period ldllya ooaratin& netcroaa Profit ' ' 1n. ia.o ' '.n 8.4, "ib.o z: '' + :

190 186 DDA&TMElrrAL ACALTS Ac:cCKmt 1D1 Pr l,oj Accoat1n1 Prioc Accowit 11 Peria< AccOUAtiD1 Per Accont 1A1 Peri 1!6! T r 19ZO 1921 l!z2 l!zl AHp! ;.n.mrtmlltal CoDtribtiOG s.1 t«. n.1 ;11'1.n, A7.' Crain o.rtat, _ :r. ". c... 1 PertUizer De2!;rtc,,_. :r. Seeid.na.rtMat t, R PetwS Denart9t 'l.a ' C,1'11 J:. ' '.' <. Pa S 11 Dert.aat i,it ' Otber Deoart.nt a.atmlin lnhatory. '. i, < <., ' Crairtmeat " '.,., Pl't Uher O.o.1 rt.ant S.ed o. t.mnt '" ", ' a.o J: Paed Dena.rtat ' ' " P:a S22U.D&rt.zit.. OtMr o.. rtmnt1 PUrcha1a1 an. a1.o «.n Grain Denartnt '!A, ' Partili&ar O.oirt.at Saed O.n.11rtnt. ' ' a :r Paed O.rtat " " J:.n '.8 ' ' Ott.r O.n.artota lndln ld.,.dtort '..,_. 1G.1 Grd.o. tnt, J: 13.7 ' ' y Sa411d P.!_l'tat.'.o.1. PHd Denartnt,1 1'.o o. o. Para Snn11 t: rarw S.11aa O.oartat. ' ', PartUiaer o.rtat Otb.er Oenartnta Coet of Goode Sold '" ' All.n.... G!af.a.p.artnt. n Perttliaar Daoartnt ' ' Seed Oep&rt9!111t Dan.artMAt " i in.' ' Feed Den.artnt '., Para Snnli DaoarteeDt OC:b.er l>enart.ata ' ' : a.\ r il.o ' Groaa Profit, : ' n. ' 'L1.7 " ' Crain Dert.at..,.,. J: l.l T,.,.,.1:.1 >. Prtiliaer.DArtnt. t 9d Dat!!!_nt.,'!: ')n.1 T " ' raed.nartmant. '" " ". J " Par. Snnliea DeoartmAt Other OanartMDtl '' J :+= "" ' z ' in.eartt,.' fertililer Da2:!rt.at '1:. '.,,_ l '. '" ' " Para Sppliea Dapart.ent t.. z ber Dan.art.nta 1a " ' 1 %.,,. 28 ' Srtnt " " 2n.io 2..,.1. Peed Danartnt et Profit. > '".z.n. <.! '" ' G lq Daoart.ant <n < :111111, % ' '4. t. '" hr UT har Daoart.at Seed Den. tmnt. '>ot,n T '., PH Dartmant,.,.11:.&.n ll. 2 Para Snoliaa Daaartat, Otbar Danartnta J

191 APPEDX G (User Manal, ntrodction to System)

192 188 A FACAL DATA SUMMARY AD AALYSS SYSTEM FOR THE FARM SUPPLY FRM by Marice D. Kniep and P. W. Lytle USER MAUAL TRODUCTO AD PUT FORMATO

193 TRODUCTO 189 "A Financial Data Smmary and Analysis System for The Farm Spply Firm" is designed to help yo make detailed, contining financial anal yses of yor farm spply firm. Given the necessajy inpt information, this compterized decision aid will smmarize departmental earnings state ments, a total operations earnings statement, and a balance sheet. Fr ther, it can calclate liqidity, solvency, profitability, and other rele vant ratios. These smmaries and calclations are then printed in a standardized, comprehensible form for yor se as a manager. This manal has a twofold prpose. First, it will introdce yo to the system. Second, it will review the system's otpt, inclding sample Printots, and general considerations and reqirements for participation. The pblication entitled "A Financial Data Smmary and Analysis System for The Farm Spply Firm, User Manal Otpt lntrpretation" is lllade available to participating firms when they receive their first com pter otpt, This manal provides a stepbystep discssion of the Printot's content and comptation of the vales for each financial statement. SYSTEM OUTPUT At the end of each acconting period firms tilizing the financial data smmary and analysis system receive a printot of their firm's fi nancial statements and also a printot of the composite average financial Position of other cooperating firms. Each printot will be identified by a separate cover sheet.

194 19 (2) The information system has for options available. Option and prvide financial information abot yor firm individally. Options and V provide a composite average of all fil'118 or of selected firms. A &81lple of the otpt for Option is fond on pages 7 to 18 of this lllanal; a sample of otpt for Option ll is fond on pages 19 to 42. otice that the otpt for Option is more detailed than Option. The increased otpt detail reqires that yor firm sbmit increased inpt detail for processing. Keep this in mind as yo decide if yo want Option or Option ll individal firm otpt. igs STATEMET OUTPUT Earnings statements are generated for each of six departments and for the total operations. Each statement gives reslts for the crrent Period and for year to date The departmental earnings statements differ in the amont of information given depending on which option the inpt data is processed nder. Option : A sample of the Option departmental earnings statements ia on pages 8 to 13 of this manal. As yo can see GROSS PROFT O SALES is generated for each department. Option : Earnings statements generated for Option are in the sae statement format as Option. Data for all firms or selected firms that have sbmitted the correct information are aggregated and averaged in Option. Option : A sample of the departmental earnings statements from this option is fond on pages 2 to 31 of this manal. As yo can see

195 191 (3) GROSS PROFT O SALES is generated for each department as with Option 1. n addition, operating expenses for each department are dedcted to arrive at a ET PROFT O SALES figre for each department. Option V: Earnings statements generated for Option V are in the same statement format as Option. Data for all firms or selected firms that have sbmitted the correct information are aggregated and averaged in Option V. The total operations earnings statement is fond on pages 14 and 15 and pages 32 and 33 of this manal. ent is the same for all options. nformation generated for this state OPERATG AD SERVCE COME is added to GROSS PROFT O SALES to arrive at GROSS PROFT FOR TOTAL OPERATO. TOTAL OPERATG EXPESES, etc., are dedcted to arrive at ET PROFT for total operations.!alace SHEET OUTPUT A sample balance sheet is fond on page 16 and page 34 of this man al. The otpt format for this statement is the same for all options. Assets, liabilities, and eqity for yor firm at a specific point in time are listed on this statement for both Options and 111; Options and V generate averaged otpt. CURRET ASSETS are divided into eight major categories and LOG TERM AsSETS are divided into for major categories. The dollar vale and the Percent of TOTAL ASSETS is given for each category. CURRET LABLTES are divided into six major categories, each expressed in dollars and as a percent of TOTAL LABLTES AD EQUTY.

196 192 (4) LOG TERM LABLTES are divided into three major categories, also expressed in dollars and as a percent of TOTAL LABLTES AD EQUTY. EQUTY is the difference between TOTAL ASSETS and TOTAL LABLTES and is reported in dollars and as a percent of TOTAL LABLTES AD EQUTY.!_ATO AALYSS OUTPUT A sample of the ratio analysis is fond on page 17 and page 35 of this manal. The format for this statement is the same for all options. These ratios are developed to give an indication of the financial condi tion and profitability of yor firm. The ratio analysis is broken down into for categories: 1) LQUDTY RATOS, 2) SOLVECY RATOS, 3) PROF TABLTY RATOS, and 4) MSCELLAEOUS RATOS. Liqidity ratios are valable measres of the ability of yor firm to meet crrent obligations. The CURRET RATO is the relationship of total crrent assets to total crrent liabilities. The LQUD RATO cmnpares only the most liqid assetsthat is, total crrent assets mins the vale of inventories and prepaid expensesto total crrent liabilities. Solvency ratios spply information abot the ability of yor firm to meet long term obligations. The LABLTES/ASSET RATO measres that Proportion of yor firm's assets spported by creditors and borrowed cap ital. The LABLTES/EQUTY RATO expresses the direct relationship of borrowed capital to owned capital to indicate the secrity that creditors have in their loans. The FXED ASSET/EQUTY RATO relates the proportion of eqity that is invested in long term assets.

197 193 (5) Profitability ratios are of two types: 1) those showing profitability in relation to sales and 2) those showing profitability in relation to investment. The percentages derived for GROSS RETUR O SALES represents the gross profit margin for the total merchandising operation and for each department within yor firm. The ET RETUR O GROSS COME represent the Profit margin above the cost of goods sold and operating expenses for the total operation. The next ratio ET RETUR O ASSETS represents the Prodctivity of the total assets of yor firm in generating net retrns. The ET RETUR O EQUTY ratio indicates the retrns to the capital owned by the firm. The PROFTABLTY RATOS are compted for the crrent op erating period and also yeartodate. The last grop of ratios are the miscellaneos ratios. AVERAGE VETORY TUROVER for the total operation and individal departments is derived by dividing the cost of goods sold by.(beginning inventory+ end ing inventory} 2, for the comparison period. The calclated vale denotes the freqency that inventory is "trned" dring the period stdied. The AVERAGE COLLECTO PEROD ratio is credit sales divided by cash sales mltiplied by the nmber of days in the comparison period. The last ratio, OPERATG EXPESES/GROSS PROFT, denotes operating efficiency. The mis cellaneos ratios are also compted for the crrent period and yeartodate. Q!:PARTMETAL AALYSS OUTPUT A sample printot of the departmental analysis for Option is fond on page 18 of this manal. The statement relates the contribtion of each department to the following categories: 1) SALES, 2) BEGG VETORY, 3) PURCHASES, 4) EDG VETORY, 5) COST OF GOODS SOLD, and 6) CROSS PROFT.

198 194 (6) Option provides a composite grop average sing the same state ment format as Option. A sample of the departmental analysis for Option is fond on Page 36 of this manal. The statement relates the contribtion of each department to the categories listed in Option pls the departmental &hare of OPERATG EXPESES and ET PROFT O SALES. Option V provides a composite grop average sing the same state ment format as Option. fil:tal BY TEM OUTPUT A sample of the detail by item otpt can be fond on pages 37to 42 of this manal. This section is generated only if sfficient detail is given on the inpt form to process the data nder Option. The first page relates the contribtion of each prodct area to the following Categories: 1) SALES, 2) BEGG VETORY, 3) PURCHASES, 4) EDG VETORY, 5) COST OF GOODS SOLD, 6) GROSS PROFT, 7) OPERATG EXPESES, and 8) ET PROFT O SALES. Pages two throgh six lists the percentage of the category total for each of the items listed nder the following general categories: 1) OTHER OPERATG AD SERVCE COME, 2) OTHER COME, 3) OTHER EXPESES, 4) OPERATG EXPESES, 5) TOTAL ASSETS, and 6) TOTAL LABLTTES AD EQUTY.

199 195 (7), ' ll a ll v : e a ll Q ll i: a ll ll, ll C> C> ll ll El a ll)q vov a, a """"!:l.!: t:: v C> Cl C>. C> ll ll Q Q a v

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202 198 (1) ',. o'.,,1 ;1 ; ' ot lot 1., Q ' ti ' "",., o tl "".c ' "]! ell 1 :;1 et Ml ',,,., 11! iii ol otc "" ' ;lail ;:1 :i 1 Wl ol O Ol., "!!!. '. :.., : o, O "" OMG\ $!;:a i:!! "l, o.n.,. 1 :n:.!. HHOa,_,. m D :: 'i ; O O M J 1.C a 11 1 '!:: i! lil., t 13,. i " g. ' ". " MU ". 1 CD. ' i :i..,. ' " CD

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212

213 29 (21) 11 ;; Cll H"" a.,.,,. cr1 '71"1 "1"4. "" c t'll ' '.,,. lr4 w l, = 1 lri:1 " > 1.,,. Cl i 1. "".,,.. i 1 81, :;f 1.a:;:ii ri ! i i/ i ,, 1 '1":C:"1l'J11 ' = '"l l J,;i Cl Cl 11'1 Q "11"1 " ll e z zw Z' a:. a:o w w. WO Ot o i. c 1 Otn A..,,:z:. ; ' ZZY. z oz ZK ::> c., rmma i A1W!i1ii1T Cr< 11 J. ''''''''.1 ::> Q, :> e Q, l[ c z w V l[.,, z.,, 1: z ll z ll _.,, ll ll > Q, Q, ll a: a: >< >< ll w c w WU/ ll ll ll J z!i z z ll ll!w w OWZ% w J::> :; Q, Z><WO co c " >< C.CCJ, zo zw Q, w. viz oz c ll we w.,,cvic a: W " w _,&.' lllz, V) J a: z,,. Ot 11J'"' Q, :;. a'oow «V>cxw H&.tW. ccxjotlc=>w,}w>g.&av a:. J>GZO.V)><>CQ.OVt ll Q, z. ll a: c r.. %.c t o c:1 ::> cx. w V)Q.WOct."t::>CV>Q.Z' l[ tr r co ". Z' 11

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215 211 (23) 11 :;; a.ftr<1 4"1M l"1, 4 i ,.:i. > Cl a 4 Cl't lo m 1 oq 1 c w >.!. z!:? ii iili1il11il1i1 Cl! 11111! <!! c. >Z z zw w w ll[ [. '"""CJ, o. a c oc at, Q. a "41,f.ftr4.ftV'l.ft 11 lj. 4 11, 1:, 1, 1 a. z 11. a "4 ffi a 4 1 V) Q. c :c l ll'.<!11 w «ZZW ii, ; rrrn111;r 1 r! i ,.,, :;; > UJ. V,. "' w z z V 'Z c c w V w. > '" w Q. V )( )( UJ WW UJ :a. V z z z UJ <! w UJ ::> z ffi ffi c Q.. )(. llp zo z. Q. w.. w.,,_z oz c c a " WC wcnc. UJ <! wiw 'Z!._.._,_, U.VJ 'Z '>U c Q..:; g;:::ffit.. c '>O.o.Zo.Vt><>4." ' Q. z V :;:i c O> w 15 ll[ w ll[ Q.. 1_1 z. z. ::> Q.. ::> w Q. :[ c

216 ;;; a ::: 1 : o1, c ::. t.! ""! 1 l (24),... > z w :[ c w w C) ::> ::> _, :[ c z :[ r e, O'

217 213 (25) ' a 1«11111"i'44'4 <'f M it 11 l1ilillllll ! >!. ll 5 Z d 1 e 1g, a! S i i = 1 : i: T i,_, J1!""11i11l Oi 1111r11i11 l 11 ' ::> _, r c!. z U :: :: C". O'..,

218 L c, : (26)..,,, > : c C> w L > 'Z i! : C3 =«cl ::'.? a = d ; l L l c 11 : c w > > J > c Z J z ' w.j z c > J J c w > z C' c > c J z z z w 1:1 z z r i::: i.: 8 _.,, 8 z 8 C> c w C> L L _., J 1:1 C> c " 1:1: 1&1::> c. J z w J C>. C, c C 1:1., ::> ::> c.j

219 .,, 1 H4j""""41,.,,,o (27),. > i "l :;j'j:!l"1hl'ca'"1 ' ' i.41 ' ;! 1 1E! 5 = ; e tt'.,, " 11, l! 11 _. z a: Q. a: '" 5 _.!.,, z :: t: " z w :E, Cl,,

220 216 (28) 11 a l'i L ' ".. 11'4 1 J. er a ::l,, > '"1 '"1 ' W ' Cll "..a " 1 1 c w > ' ' <llr4 i ;;1 a :l.: '"14 '"1 11 _,.!. ' ' a 1:1 Z j '"1 a _, _, J " <J. Cl ' :::"1 '"1 '"1 "" r4 ' z O zw _, w "" w CJ, e, " Ot w O<C «., V) Q. w 111% C <.l> _, at:zzw e, ii i ;1 l "" i. l'i '1 '"1"" '1. " 1 '"1 a1 ' 11 1 e, ::zi :>., ' " c L L 11 :>, _, w _, > > 1 _, % _, ; w z > _, _, ' w > % _, > z z 1 _.,, z CJ zcr 1: % :c. v L w:) w j! '. ell % w _, ' v v Cl) v 11 Cl :> _, c

221 11 Cll "1<"1'"4.qHW"f < 4H H.4<'1 M i "i L c "" ii 11 Cll 1 l.a H 1 ; : g 'j 111i11 11.! _ l 11 ": 1""1""1 ":111 Cl 1 11 d 11, 1 Cl l l z c 1Z lc zw 18, w H. lc c 1 4 a: c.:. i 1 1 w.n::cr<l i lc C).,, &&.iu,._. o. Ot,. w OV> Q. cr:zz1. oz. &a.z ::> :::),,.,, 'j W"f,.,,.q4' '"4 lc i i il1 c S j l ,, :::). :::) 217 (29) U.,,. :c :;;.,,. c w :c > 1; """ w z llv>.,,.,, :r : <.>Z z w w w.,, >.. c :! C) >< >< w w.,, J..,, z z.,, z.,, w C> w o.1zz w! :::) z.,, z)(w co c. >< 4.CCOzo zw.. w.. w z oz c L w '' '" Cl w'w V>Z w w at z,,_v at tt'_.,._,. atoouj CC 41) CC U J WW.,,. ) 1>G.CLZO.V>X><CCLOV> z. ) at.c 4 r U..r w z.c t C> a. ':> ac.,. w. VG.U.JOCJ:a:.t:>CtVJCLr :c. w :c at.. z C> Cl, 4a:_,a:.t<11::>WJW>CLUU. 1_1 '', > w

222 218 (3), ;;;. 11 Cl. CQ CQ a; Cl c.m J 1.a<Q,..a,. 1 i!. g J > 1 Cl.. H. 1 i Z.!. _, OC r Ol"1 O a;. g; r1.4.;j Cl 11 '""" a; O.,. ".. H <:>.4 r1. z l z zw.a w r1,.. CQ. wr " w. oo,. ocx! V) Q. c Q. :r w 11. l a "1,, ee zz. " z a:::> w., :r a"1 r. Cl Cl. CQ 1. oz a: a Cl[j '"4"4 H. i L _,! a:,, l > 4' z :1 C) z z w LL > z > z " z 7 " zw 8 a. " _.,, " z 7 w _, LL zx c " ;. "' a. :::>.. coo,_ z O' w a.,.. 1t Cl,_ :::> a. :::> a.,. c a.

223 219 (31) 11 ct <Q l.fl""ih r1.fl.flr1.f!<q ""1.. l!i J i j i H Hr.,, 1 1"1144 1"1 1 > a a "1 1 at c.!. z! 181! 1 l"1,''l"l11 11i! ! ! O «nca":", ": ii!l',. z ;;1 1.1, w o. Ot O' :[ 4 a:... at OV> Q. V) % azz <: oz Z' :[ ::>, Q. z c. ; at, l 1. ',,,., ". Z at ct '"1 4 4 Cl < ii "" at! :f 44 lri4t14.fl 14 4 c. 11! i.!. 1 1 ::> Q. ::> Q. :: :;; Z' U > :. _, z '" UJ ; '" Vl, U7 z w U "" _, w Vl. > Q. Q. _, :! Of >< >< w c w WW z,.. Vl z z W z z CllW, w w owzz, w ' z. Q. Z )(WO <1. ><.ca:) Z' z t; w Q. w. :.,, z Z' V) V) c at. w n&j V) _, w Z' _, >, _,_V_, Q. a:oow a: V) ct W ' UJ W Vl Vl c _,,_o.o.zo.v>x>4.11> J. z w V)Q.WOCX:«_,_::>CtV>Q.S'.'. w. :[ Q., Z' c a: _, a: => w _, w > Q.. v at. <C' c r w 2"" t o a: =>a '" _!

224 22 (32) H O. 1 O cq41 C. L v, J MO H o< er.. " ::l "1, 1 1 > C) w 1= 1..,. O 1 Cl. O '"j 1, 41 " i a er.,.. > Z 81 <7'41. m.,. " rrl " 11 ' 1"1 1 '"4 '"4 (7'.,,ci.1 H a1 H..,, 41cq 41. '"4 Z _ C). ":;; i 1. Cl ffi "" W1.,... we, a. o' <7i a 1 o O i. '"4. OV>Cl. % : "<lll CL Z Z fil 1 Zi L, H 1 Cf'l.a w. at 41";l Q a1 "" L H ffi "1! Z z :::) Q. :::) ;:' w _, w cr l[ w " w > V er.!., ;: 1: W, _, > _, _, C"1 z V c w w. _, _, V z c > w > >. _, > V w rr: z i C) V) z V V x :;; C). er. zw. z. Q. _.,, w C) " z zc w " 11. zx _, C) <!) _._,., V z.:. V. w. V,. _, c z. a: V Cl' L 1 c _, w :r '' a: r c C) C) C"1

225 11 ;;; Cl 4 Cl (33) H 1<1caHca4,,H,,.a 1 1., , > 1, Cl 4 Cl. "J d 1 1 i 1.,,: z 81 'iarai _ 11 ;;; 1":"J 'l': "J"J": '';f'":.a.a ; "1 Cl i 1. 1: 11: : : :.a :: " e. z w g; rl l:j.. :1:U4' Cl wr Q.. ooi =i oc.a ovi a.. :r 1 ::". S Z Z &l i!e,,.,., r w r1,91i9r19.2 l '"1"! 1 4 d zw 1 1 i, [ 11.! w B s r w _, 1.. z ::. 1: w :z w w :: 1 w _, z WV w w z z. >e>. 1; Q. " '" )( )( w W ' w. :a z lllw z " z w C')WZZ w _, z. Z ><WO " 1; co w z >( c 4111:1 zo zw. w w.,,_z oz l[ z. we ex: ru'l <C,,.C '" UJ'&l 'Z w _, w U '" z _,>U t1vt' Q. z z >(. citoow '" «V'lGCWJ'llW w :,; CCll''CXtC::>W'W>Cl.&&.U _,. ex: C J>B.Q.ZQ.V.>C>CO.OV> ex:.ce c s:: w z e1 t o o ::> ac. z w.;!i! UJ vto.wcacxt::><clii'q.e w :z: :: l[. 11 " C' z e

226 . c 't. 1:.222 (34) 1 ii i,.,. Q > " 4 er. Ci d ii '4 Cll "1 71 l, _, > c w w :; er. U C' _, _,, w a1. >< c = c z W cc c w 1W _, i :ir 1 Li """ >. _, '>U. C' t: t l;; :ir.,. J)Q. UJCWZ _, mew w o z,,> = Cl)CWQ.W OZZ'.CA.&>C>CX c, :.,,! t z c :::> c A. w.1w _,, _, vww Cl. c _, tin:::tz:ja& a. _,.CJCatOW _, jww z tu>uv:z:. > w oozt cww c 31 z4c4". )i.joo c c _, w 1 1>U&MV'JZ 1 ::>, ii 1411 Ml Cl i11111.! 1.;.! 11 Cl H a a i !. Cl.. :::>.,,z w t ' w.,, t 4 :::> c :cw '..:> U w :::>.,;o :c :::; w i c!w U c 1 r t a.:> zz w w O Z cc w!. wz z 11tCOVO.W w Cl. c wwa.w>c& U <:), _,.,,..i «Z.Z z Cl.,,.,. :::> :::> c UJ>U>U c ccwooo E ' c >UWt t W., Z" :::> 2" 4 CC t:;:. Cl: ::o:; c w UJ Q. C &l' c c >O. % z w ccwozs Z' Cl: z. Z' Eo:.C4. A.O,.a.. o. c Z' Z', c x: ::>.,

227 L. 11 M (35). >. w l1 '1C'l'lOl11'. " c:2 c 1 1TiTi1, 4.,,8 < O<GCPll<lrt M i 4 :c,. 9 Tl11i. 9 "1 1 Q, ",, c w ::) at :::>, Q. Q, w w > wl w ' z >, t: D.. 1 c 81. z z c.,_, w c >< :1 c W z w 11 z Q. w Q, w R:::; ><. w ;;; :::> <.!) 7 z w ta.w w _, <.!) C GL lidi' llz X <.!) c a,u.dlwllllt c c z w C>U.V>U.U. w c > > Q, z ;c c _, 1 V)U O>a i«pot w OZA. oc e o «,. Z UJ M.a cd <. ; w """"" ::!Ci., 11 Pl Cl,ol L " ::> 5 51 jjjj 1 1 Q, CJ, w 1 """"",. 111 < <.flj<c<o' ":.. Q,,,, 1,,,1,,, Cl 1 "J l3 1 1 x z :1 z at w, z Q, 1 z w 5 :1 :::> VX '" :::> 'Z w Cl w > z z z 1 z z Q, D. w Q, D. w :::> ::>O z 'Z z :a. 11 " : x «.2 :! at U z ::) :::> ::> ;! toosw 4a:'WWat:Z: U WWW<llll t 1 ' &. c.!)\lv>\lcj w w w a. <.!) z z z 1..,.. C'

228 c. O< "1 a.o 224 (36).a H.a O't "1 H Cl.1 oi. Cl, i 4 Cl U. >,_ li. 4. 4t J j 4t Cl. ::l =1 1 ll' a. a. >< lowl 11 "1. Cl a. z ',_, o => ; Otll. j Cl 11"1 V :; d.fl d :i "" 1.a " 8 > loolz o o e > :: "" ":1 J V>O.,_ '. a: '" e o z Z'. w.. H.a 3 Cl Cll Cll l" 1 a C) wz z > ' 1 "1 1 a. 111 z ',. 1 JCof',.o, ozo H CQ OC CC., 1.a d w, _. 4 CQ Q. 1 Cl o '.. :c. roz x =>.,,,. 1. O't Oi 4t j 1i Cl ca: J O't. d :; 4 "1 1 s: z GtWZW,!!! Cl Cll.a d., 4 Cl " a ' 1..,_ :[ w. z w z. z.!:! w. ). w. c ffi Q. w.. w. ti) ii ::).. z z a:. w c a: :c.. a: w w. 1 " ti). \.). ti)

229 ' 4 at 4 1 rt 4 "", 225 (37). > w ot i! w 1>1 li ;:;i,:: l!.,,.!e wl 51 Cl o. W """"""""""""""""""""""""""""""""""""" 1i1 :":,,, ";!": 11 ": 1"""" 1"1 1"1 "141 1"4"1 "" fpt 1"1. P :=, l, l j l i 1i,"11,i"11 11,, 1 JJ "1!:!, 111 Pt 1"1. ',, 4, "11 11 '! 1 ji3i,jjji1i,liiiii1 1 13i"1iji1i"11 " a w _, a. c z 8 t,, E 1C "".,. 1. Cl)

230 " c 226 (38). > "" :, 11 i 51 Cl ;1 ii a. W 1 > c l 1 ::. z &!t 1 UJ '" c c w )( c J UJ c :m;w O<' UJC vat a a. w zc CU S:. av.;;s. z ::;:;_,.zoc «111cZ'UJ Z>Z,.% z. w:r. &a.octo z UJ )( UJ UJ :z: 1! 411 w _, c z CM Q. Q. )C z )( c" "" e, )( zw WU.JO c " w )( &&.: Cvit. " a:!is. o j ::> a Ml _, Q. c z a Q....,.. ao

231 f\ ot. 1, i / : (39) >. U a. c ll z. ll. z w., t. v e,

232 228 (4)., > => Q. 6 & c a: (J z Cl i: z r Cl

233 ' W jl1 1, ) 229 (41) ::> ::> Cl ( z s " ) z U le le,.,,. > e.

234 l[ 23 (42) t. > 'Z oo > om,._, 'Z ::> Q ::> Q. f!. a. l[ c = 'Z E a. Q l[ l[ Cl'.

235 231 (43) GEERAL COSDERATO AD REQUREMETS FOR PARTCPATO Yo may be asking yorself several qestions right now. Will the information receive be worth the effort? Why shold let some ot Bider see my records? To pt yor mind at ease yor records are held in strictest confi dence, no one will see yor otpt bt yo. The information yo receive Will far otweight the effort yo pt into it. And, remember yor firm's information is needed to make the indstry average more accrate. As ore firms become involved the average becomes more meaningfl. Standardized Acconts. Standardize is the keyword. To make the indstry average more meaningfl and to be able to compare yor otpt with the indstry average, all participants mst se the same chart of acconts and procedre for sbmitting data. To overcome the possibility of having the wrong data nder an accont name the financial data smmary and analysis system is programmed to accept a standard chart of acconts. This chart was developed especially for the farm spply indstry by the Grain and Feed Dealers ational Association. The basic acconts and sbacconts in the chart are otlined on Pages 44, 45, and 46.

236 232 (44) GRA DEPARTMET Wheat Corn Barley Oats Rye Grain Sorghm Rice Soybeans Other Grain FERTLZER DEPARTMET Dry Mix Liqid Mixed itrogenos Material Phosphate Materials Potash Lime Other Fertilizer SEED DEPARrnET Grain Seed Legme Seed Grass Seed Other Seed SALES, PURCHASES, AD VETORY ACCOUTS (By Department) OTHER COME nterest ncome Finance Charges Dividends Rental ncome Gain on Disposal of Fixed Assets FEED DEPARTMET Poltry Peed Beef Feed Dairy Feed Swine Feed Special ngredients Bagged Feed Blk Feed Other Feed FARM SUPPLES DEPARTMET Agricltral Chemicals Animal Health Prodcts Farm Machinery Hardware Petrolem Prodcts Livestock & Poltry Eqipment Lmber and Bilding Spplies Tires, Batteries & Accessories Other Farm Spplies OTHER DEPARTMETS OTHER COME AD EXPESE ACCOUTS OPERATG AD SERVCE COME Grinding, Rolling, Pelleting, and Mixing Feed Cleaning and Treating Seed Cstom Applications Eqipment Rental ncome Grain Storage, Handling and Drying Trcking Operation ncome OTHER EXPESES nterest Expense ncome Taxes Los on Disposal of Fixed Assets

237 233 (45) OPERATG EXPESE ACCOUTS SALARES AD WAGES Office Salaries Management Salaries Direct Labor ndirect Labor Other Labor PAYROLL TAXES FCA State Unemployment Federal Unemployment EMPLOYEE BEEFTS DEPRECATO AD AHORTZATO RET EXPESE Eqipment Leases Bilding and Facilities Lease Other Rent REPARS AD MATEA.CE Eqipment Repair Bilding and Facilities Repair Other Repair SURACE EXPESE Bildings and Machinery nsrance nventory nsrance Other nsrance PROPERTY A.D BUSESS TAXES Real Estate Taxes Personal Property Tax Licenses (bsiness, ato, etc.) Feed Tax Fertilizer Tonnage Tax Other Taxes UTLTES Heat Lights Power Water Fel Telephone ADVERTSG EXPESE TRAVEL AD ETERTAMET SUPPLES Stationery and Printing Postage Small Tools Fmigants Operating Spplies Bags Gas and Oil Other Spplies PROFESSOAL SERVCES Legal Expense Acconting and Adit Conslting Fees Electronic Data Processing Other Professional Services MSCELLAEOUS EXPESE Contribtions Des Sbscriptions Bad Debts Bank Charges Brokerage

238 234 (46) BALACE SHEET ACCOUTS CURRET ASSETS Cash on Hand Cash in Banks Marketable Secrities Acconts Receivable Cstomers Acconts Receivable Other otes Receivable Finance otes Receivable Allowance for Dobtfl Acconts Margin Deposits Advances Paid on Prchases Accred Storage Charges nventories Prepaid nsrance Prepaid Rent Prepaid nterest Other Prepaid Expenses Other Crrent Assets LOG TERM ASSETS otes Receivable oncrrent Board of Trade Membership Land Bildings & Elevator Properties Machinery and Eqipment Ato and Trcks Office Frnitre & Eqipment Other Property, Plant, & Eqip. Accmlated Depreciation for Each Accont ntangibles Other Long Term Assets CURRET LABLTES otes Payable Banks otes Payable Other Crrent Portion Long Term Debt Acconts Payable Trade Acconts Payable Other Otstanding Drafts Employee Taxes Withheld Taxes CollectedSale, e t c. Dividends Payable Advances Received for SAles Accred Property Taxes Accred Salaries and Wages Accred nterest Expense Accred Payroll Taxes Accred Storage Expenses Other Accred Expenses Federal ncome Taxes Payable State ncome Taxes Payable Other Crrent Liabilities LOG TERM LABLTES Long Term Debt Sorce A Long Term Debt Sorce B Long Term Debt Sorce c Other Long Term Debt Deferred ncome Tax Deferred nvestment Credit EQUTY Preferred Stock Common Stock Additional Paidn Capital Retained Earnings Proprietorship Other Eqity

239 SUBMSSO OF DATA 235 {47) At the end of each acconting period each firm mst sbmit accont and sbaccont totals from their records. Data from these acconting records is transferred to a code sheet by the firm and sent to the pro cessing center for appropriate compter rns. The compter program is designed to accept data from yor firm on a monthly, qarterly, semiannal, or annal basis. Financial smmaries can be processed at any of these intervals. For example, semiannal data will be accepted by the compter in either of two forms: 1) six monthly inpt forms, or 2) one sixmonth inpt form. Data can be sbmitted in two ways for the SALES, PURCHASES, and VETORY acconts. Yo may sbmit only the total amont for each de partment, or the amont for each commodity within a department, bt do not enter data in both places. n the example in Figre 1 the amonts cold have been entered by commodity as indicated by the X's. n the case when detail by connodity data is sbmitted the compter sms the commodity vales to the departmental total as the financial statements are being processed, gnore the nmbers in parenthesis, they are for com pter processing only. Data can also be sbmitted in two ways for OTHER COME and OTHER EXPESE acconts. Yo can sbmit data for the major category {pper case letter) or by item, bt do not enter data both places. n the example in Figre 2 the total amont cold have been broken down by item as indicated by the X's.

240 236 (48) 11"1 >< >< M M M M M M M M M M Cl) fz.l en. >< >< g; p. Cl) s.: 'ts ::J Cl) la.l Cl) Cl) >< >< (.) p ell kl < ell. "" : c 'Pl. z s::.s:: t " '" C'O "" ) Cl) " C o p c: o "" Cl) C'O i:aj :». Q 41 c: CV fl) " Q ' "" ll : s.t ),Q CV CV 41 z CV " C'O :». ().s:: '"1 is "" ' 5 8 C'O ell '"1 " ' E1 ""4 : llq t!) Cl) g Cl). M :t 11"1 \CJ \ '" c::

241 237 (49) Figre 2. llstration of inpt of OPERATG AD SERVCE COME TEM DESCRPTO DOLLAR VALUE (888) OPERATG AD SERVCE COME (4) 1.5 (878) Grinding, Rolling, Pelleting, and Mixing Feed (4) x (879) Cleaning and Treating Seed (4) (88) Cstom Applications (881) Eqipment Rental ncome (4) x (882) Grain Storage, Handling, and Drying (4) x (883) Trcking Operation ncome (4) (4)

242 238 (5) Data can be sbmitted in for ways for OPERATG EXPESE acconts (See Figre 3). Yo can sbmit data for the major category (pper case letters) or by item, bt do not enter data both places. And, yo can sbmit data for the total operation (TOTAL DOLLAR VALUE colmn) or by each department. n the example in Figre 3 SALARES AD WAGES cold be sbmitted for the total (12,) or by item as indicated by the X's. SALARES AD WAGES cold also be sbmitted by department (6,; 3,; SOO; 1,; 1,; 5) or by item as indicated by the Y's. Here, yo do not fill in the 12, or the X's. The second method of sbmitting data is reqired for processing nder Option. Data mst be sbmitted for each of the applicable BALACE SHEET AC COUTS as shown in Figre 4. Beginning inventory vales are reqired only at the time yo begin Utilizing the financial data smmary and analaysis system. Thereafter, the ending inventory sbmitted at the end of each period will be sed as the beginning inventory for the next period. A standardized code form has been assembled in a separate booklet and is entitled "A Financial Data Smmary and Analysis System For The Farm Spply Firm, Coding Form". t contains the complete chart of ac conts that was listed earlier and is similar to the example previosly 9ho11. The forms are spplied to all cooperatin firms and yo are reqired to se this form for sbmitting data. One thing to remember when filling ot the code form, the information Yo receive can be only as good as the data yo sbmit. t is very im

243 239 (51) ti) '"" ti) i;.;i en A C3 po po 9 8 ti) po po po '\ ' ' ' ' o ' ' O ' ' O ',, po po ti) j po is. '\ in in in in in ' po pi po pi c t! la.l A,,,,,,,,,,,, :a j g.. ti) "".... M M M M M M 4J :: CD Q..;j. en en CD ll la.l en ll z Q... al ". ll :ii Cll. en.c al = al t: E ';. "" " al "" r::l en.c 4J 4J "" el Cl) co en ti) ti) en Q m Q "" " co "" " 4J rai co. 'd Q ll A. ll Q.. Cll M :: M r::l 'ts.c: "d M ffi )!. M. r::l 4J is A A. Cll en. (). M, ' "" " '\ \, Q in M M M M M M C"" :: M M M M M M ra. ) Q

244 24 (52) Portant to sbmit complete and accrate data. Yor firm's information is also in the indstry average, so the average, at best, can be only as good as yor contribtion. Figre 4. llstration of inpt for Balance Sheet Acconts. TEM DESCRPTO DOLLAR VALUE (299) Cash on Hand (8) (2991) Cash in Banks (8) (396) Marketable Secrities (8) (3197) Acconts Receivable Cstomer (8) (3198) Acconts Receivable Other (8)

245 APPEDX H (User's Manal, Otpt nterpretation)

246 242 A FACAL DATA SUMMARY AD AALYSS SYSTEM FOR THE FARM SUPPLY FRM by Marice D. Kniep and P. w. Lytle USER MAUAL OUTPUT TERPRETATO

247 243 DESCRPTO OF FACAL STATEMETS AD RATOS!TRODUCTO This manal takes yo throgh the otpt that yo receive from the financial data smmary and analysis system. Each statement of yor print ot is discssed as to content and comptation. Yor firm's data is processed according to the detail yo sbmit on the inpt form. Sbmission of data by departmental totals, category totals t and operating expenses for total operation will reslt in pro ceasing nder Option. Sbmission of data by commodity, individal item, and operating expenses by department will reslt in processing nder Option. Yor data is groped with data from other participating firms to compte a composite average, which is the second printot yo receive. Each set of otpt will have its own cover sheet for identification. Abot twothirds of the way down the cover sheet yo will find one of the following things: 1) FRM followed by yor firm's six digit identifica tion code and the date, or 2) COMPOSTE AVERAGE OF (o.) FRMS and the date. This tells yo the type of otpt, individal or composite grop average, yo are looking at. GS STATEMET An earnings statement (also known as a profit and loss statement, an income statement, or a statement of operations, is a smmary of all or firm's economic activity over an acconting period, arranged so that Perating expenses can be sbtracted from gross income to get a net profit for the period. The earnings statements generated are of two types, departmental and total operations.

248 244 (2) Departmental Earnings Statement (Option ) The format for each of the six departmental earnings statements is the same. are fond on pages (1 of 8) to (6 of 8) of yor otpt. These statements The SALES cat egory represents the revene derived from merchandise sold by the depart ment. COST OF GOODS SOLD is derived by adding the vale of the BEGG VETORY to the vale of the PURCHASES made by the firm dring the period and then sbtracting the vale of the EDG VETORY. COST OP GOODS SOLD is sbtracted from the SALES to arrive at the vale of GROSS PROFT O SALES. Option gives composite grop average departmental earnings statements sing the same statement format as Option. (Option ) The format for each of the six departmental earnings statements is the same. These statements are fond on pages (1 of 14) to (12 of 14) of yor otpt. Arriving at GROSS PROFT O SALES ses the sam procedre as described above for Option. The next ection of each earnings statement dedcts TOTAL OPERATG EXPESES for each department from GROSS PROFT O SALES to arrive at ET PROFT O SALES. Option V gives composite grop average departmental earnings state ments sing the same statement format as Option. Total Qperations Earninss Statement The format for this statement is the same nder all for options. The total operations earnings state ment is fond on pages (7 of 8) and (8 of 8) for Option and pages (13 of 14) and (14 of 14) for Option.

249 The SALES OF MERCHADSE category represents the total revene de 245 (3) rived from merchandise sold by yor firm. COST OF GOODS SOLD is derived by adding the vale of BEGG VETORY to the vale of all PURCHASES made by the firm dring the period and then sbtracting the vale of ED G VETORY. COST OF GOODS SOLD is sbtracted from the SALES OF MER CHASDSE to arrive at the vale of GROSS PROFT O SALES. To this figre, the OPERATG AD SERVCE COME is added to arrive at GROSS PROFT FOR TOTAL OPERATO. The percent of sales calclation is based on SALES pls OPERATG AD SERVCE COME. The next section of the total operations earnings statement concerns dedcting operating expenses from gross profit. TOTAL OPERATG EXPESES are sbtracted from GROSS PROFT FOR TOTAL OPERATO to arrive at OPER ATG PROFT. OTHER COME is added to this figre and OTHER EXPESES are sbtracted ot to give ET PROFT for the total operation. The vale of ET PROFT is then expressed as a percent of gross income. BALACE SHEET The balance sheet (also referred to as the statement of financial condition) is an instantaneos pictre of the financial condition of yor firm at a specific moment in time. t systematically lists all of the assets and liabilities of yor firm and then derives eqity. ts prpose is to reveal yor liqidity and solvency at that particlar moment. Liqidity is a measre of the degree to which crrent assets of yor firm can be converted into cash to meet crrent obligations. Solvency is a measre of the ability of yor firm to meet crrent and long term credit obligations. Becase asset and liability valations change continosly

250 the vales measring liqidity and solvency will be affected by the date on which the balance sheet is made. 246 (4) Yor balance sheet can be fond on page (1 of 1) of yor otpt, which innediately follows the total operations earnings statement. The format of the balance sheet is the same for all for options. The percent of total colmn may not add to 1 de to ronding. The balance sheet is arranged into two parts, each of which, by def inition, is always eqal to the other. The first is a listing of all the assets of yor firm, classified into two grops according to the liqidity of the assets. Assets that will normally be converted into cash or will be sold or consmed dring the next operating'cycle are termed CURRET ASSETS. All other assets are classified as LOG TERM ASSETS. LOG TERM ASSETS inclde investments, property, plant and eqipment, etc. which are sed to prodce prodcts and services and have an expected sefl life to yor firm of greater than one year. The second part of the balance sheet specifies the claims against the assets. Liabilities that come de within the next year and that are expected to be paid with crrent assets or by creation of other crrent liabilities are classified as CURRET LABLTES. Yo shold inclde that portion of longerterm debts which will become de dring the next acconting period as part of CURRET LABLTES. Amonts owed that do not become de within one year are classified as LOGTERM LABLTES. The final category on the liability side is the owner's EQUTY, sometimes referred to as net worth. This figre is the difference between TOTAL ASSETS and TOTAL LABLTES and represents the ownership claim against the firm.

251 RATO AALYSS 247 (5) Ratio analysis is a powerfl tool yo can se to measre the finan cial position of yor firm. Bsiness ratios provide symptoms that ident ify areas in yor firm needing improvement. Once the symptoms are de termined it is management's role to find and solve the problems casing the symptoms. A ratio is a fixed relationship between two similar things. Ratios, stated in acconting terminology, can compare items in a balance sheet, one to another, or ratios can describe the relationship of earnings state ment entries to each other. Ratios can also compare one vale in the balance sheet to an entry in an earnings statement. The ratios reported for yor firm are divided into for major cat egories: 1) LQUDTY RATOS, 2) SOLVECY RATOS, 3) PROFTABLTY RATOS, and 4) MSCELLAEOUS RATOS. The ratio analysis can be fond on page (1 of 1) of yor otpt, directly after the balance sheet. The ratio analy sis printot format is the same for all for options. Liqidity ratios are conanonly sed indexes of financial strength for the firm and are valable measres of the ability of yor firm to meet crrent obligations. The CURRET RATO i the relationship of crrent assets to crrent liabilities. t is compted in the following manner: Crrent Ratio Crrent Assets Crrent Liabilities The LQUD RATO (sometimes referred to as the acidtest ratio or the qick ratio) compares only the most liqid assetsthat is, crrent

252 248 (6) assets mins the vale of inventories and prepaid expensesto crrent liabilities. t is compted in the following manner: Liqid Ratio Crrent Assets nventories Prepaid Expenses Crrent Liabilities Solvency ratios spply information abot the abilities of yor firm to meet long term obligations. The LABLTES/ASSET ratio measres the proportion of yor firm's investment that is spported by creditors and borrowed capital. t is compted in the following manner: Liabilities Per Asset Ratio Total Liabilities Total Assets The LABLTES/EQUTY ratio expresses the direct relationahip of borrowed capital to owned capital and is an indication of the secrity that cred itors have in their loans. t is compted in the following manner: Liabilities Per Eqity Ratio TotalE!lities The FXED ASSETS/EQUTY ratio relates the proportion of eqity that is invested in long term assets. t is compted in the following manner: Fixed Assets Per Eqity Ratio Long Term Assets Eqity Profitability ratios are of two types: those showing profitability in relation to sales and those showing profitability in relation to in vestment. The percentages derived for GROSS RETUR O SALES represents the gross profit margin for the total merchandizing operation and for each department within the firm. t is compted in the following manner:

253 249 (7) Gross Profit on Sales X Gross Retrn on Sales Sales 1 The ET RETUR O GROSS COME represents the profit margin above cost of goods sold and operating expenses for the total operation. t is compted in the following manner: et Profit et Retrn on Gross ncome Sales of Merchandise+ X 1 Operating & Service ncome ET RETUR O ASSETS ratio represents the prodctivity of the total assets of yor firm. t is compted in the following manner: et Retrn on Assets et Profit X Total Assets 1 And, the last ratio in this grop ET RETUR O EQUTY indicates the re trn to the ownership investment in yor firm. t is compted in the following manner: et Retrn on Eqity et Profit X Eqity 1 The last grop of ratios are the miscellaneos ratios. AVERAGE VETORY TUROVER for the total operation and individal departments de notes the freqency that invantory inveatment is "trned" dring the period stdied. t is compted in the following manner: Cost of Goods Sold Average nventory Trnover (Beginning nventory+ Ending nventory) (2)

254 The AVERAGE COLLECTO PEROD (DAYS) represents the ratio of credit sales to total sales and service income mltipl&ed by the nmber of days in'the 25 (8) comparison period, t is compted in the following manaer: ) Receivables Average Collection Period (Days Sales+ Service income X o, ot Days The last ratio OPERATG EXPESES/GROSS PROFT denotes operational effi ciency of yor firm. t is compted in the following manner: Qperating Expenses Operating Expenses Gross Profit Gross Profit For Tot1 Operation X 1 DEPARTMETAL AALYSS The departmental analysis can be fond on page (1 of 1) of yor ot pt directly following the ratio analysis. The printot format is slightly different for Option and Option ll. (Option ) Thia report relates each department's contribtion to the following categories: SALES, BEGG VETORY, PURCHASES, EDG VETORY, COST OF GOODS SOLD, &tid GROSS PROFT. Option gives a composite grop average sing the same statement format as Option. (Option ) All the information contained in Option is in Option ll pls two more colmns of information, OPERATG EXPESES and ET PROFT O SALES. Option V gives a composite grop average sing the same statement format as Option.

255 251 (9) DETAL BY TEM This section of the otpt is generated only nder Option. t can be fond on pages (1 of 6) to (6 of 6), immediately after the de partmental analysis. Page (1 of 6) relates the contribtion of each commodity or department to the following categories: SALES, BEGG VETORY, PURCHASES, EDG VEOTRY, COST OF GOODS SOLD, GROSS PROFT, OPERATG EXPESES, and ET PROPT O SALES. Page (2 of 6) relates the contribtion of each item to the following major categories: OTHER OP ERATG AD SERVCE COME, OTHER COME, and OTHER EXPESES. Pages (3 of 6) and (4 of 6) relate the contribtion of each operating expense to the TOTAL OPERATG EXPESES. Page (5 of 6) relates the contribtion of each of the assets to the TOTAL ASSETS. Page (6 of 6) relates the con tribtion of each of the liability and eqity categories to TOTAL LA BLTES AD EQUTY. TERPRETATO OF FACAL STATEMETS AD RATOS The completion of financial statements is based, in part, on man agerial inpts. Acconting is not and will never be an exact science. Therefore, interpretation of yor otpt reqires analysis and comparison. Logically, the first item to examine in analyzing yor earnings statement is the dollar sales volme. Dollar sales are the reslt of a combination of two factors: selling price per nit times the qantity of goods sold. The primary objective of the earnings statement is the determination of operating efficiency. The size of dollar sales or gross operating income means little if it is not translated into net profits. The share of sales that is absorbed by operating costs and expenses is

256 252 (1) one of the principle concerns to yo as a manager. By comparison of earnings statements for sccessive periods it is possible for yo to ob serve the progress of yor firm. The profitability ratios and the op erating expenses to gross profit ratio will be helpfl in analyzing yor earnings statement. et retrn on gross income measres the retrn on the total investment in assets. et retrn on eqity measres the retrn on the bwnership investment and is ths sally an important measre of how well yor firm is achieving its objectives. The effects of the operations of yor firm are reflected in the bal ance sheet by increases and decreases in the varios assets and liabilities and in yor eqity. These changes can be observed by comparing balance sheets of sccessive periods. The liqidity ratios and solvency ratios reflect the financial condition of yor firm. Average inventory trnover is indicative of the nmber of times yor average inventories are con verted into cash or receivables dring the year. Hence, it reflects on the qality of inventories throghot the year and on the prchasing and merchandising efficiency of management. COTUG FACAL AALYSS COMPARSO To make sccessive comparisons of financial statements easier and consistent over time yo shold complete the Contining Financial Analy sis Comparison Form from information on yor otpt. This form was developed for internal aaalysis of the firm. Recorded on it are figres and percentages from the earnings statement, balance sheet, ratio analy sis, and departmental analysis of the present acconting period and the average of previos acconting periods. A blank form can be fond in

257 ' 253 (11) Figre 1 of this manal. At the end of each acconting period complete each sheet and pt it in a binder. as the example in Figre 2 of this manal. The fonns, in the binder shold appear The first six pages of the form lists the earnings statements for each of the six departments. Any deviation in the trend from previos years may indicate to yo a frther analysis of the individal department is reqired. The seventh page lists the earnings statement for the total opera tion. This will give yo an indication of how the total operation is doing in terms of net profit. Here again any, trends cold be noted that wold indicate needed frther analysis. The eighth page is the balance sheet. This page cold indicate in creases or decreases in crrent and long term assets over a period of years. Likewise crrent and long term liabilities and eqity cold be monitored for increases and decreases over the time period. Here again the information cold signal to yo problems in yor firm's financial strctre. A ninth page lists all of the ratios compted in yor otpt. page shold be especially helpfl for yo in analyzing yor firm's pro gress over time. This Finally, the tenth page lists the departmental analysis. This will indicate to yo which departments are contribting the most or least to each given category.

258 254 (12) Recording the otpt yo receive in yor Contining Financial Analysis Comparison Form for trend analysis should help yo control the financial condition of yor firm.

259 255 Figre 1. COTUG FACAL AALYSS COMPARSO FORM

260 256 l!juf MG8 ST ATEllEllT Crain AcCOUl'ltiD Pioc Dollar % of Vale l11: 1 Tr Arwe Or SalH Val.e Cot of Goode Sold Total Good Ani' l=.b,"l"a'f'ti Coat of Cood Sold 1f'+"Croa1 Prorit o Sal'+''+ Accoa.t 1111 P Joe Dollar Yal J of roh Gro Profit oa Sal=.aa,._ t'+i SalariH and WAH& 1f'+payroll taa 1f'tiOJ&f17ta1rT 1f'f f't 1f't i'a;;"i=r++ lf't='::: DC 1f't7!!=!::in Tl'el and Dtrtain.ea.t 1tt:5C 't" 11't,;cro f eaai.el San icaa 11tK9Tl&D.Oi&pmi;: 1ft r 1r,, 1

261 257 Accont1Jl1 Prioc AAl<llG& STATl!KE!rr Fert1Ur Depart.enc To ""AYH Dollar of of Doller Vale la. Coot of Coodo Sold a.laatn1 Anton Prc.haHa Total Oooda Anilable A lncuo neotor' Coat of Cooda Sold kl V&lo CroH Profit od Sal AccO\lllt Laa hr 1( r Toor Dollar or of Doll.or Vale k:roa1 CToaa 9&.le C'roaa P'ro'it oa. 1 aa <>naratio lmeo.aa ariaa aod tilaaa : Paoll Taa i fit o.e.;rec:uitloa kt.en.min lr&dca Ta:a Utlliti. \dvartbtn Travel and lnterta!at S_p2!1 Protaadooal Hi.:&lUAao S.rvicaa total n.atio et Profit oa. iilaa

262 258 &UlfMC STAnK!lrr Seed Oepart.at Acooti1nt1A1 Ped.oc t r Dollar 1 of of Dollar Val Sal Vale eon 1 Cood1 So d.kcomtid1 Peri ' leal&mina la'mdton P\irc.aa Tota.1 Qc>oda AnU.ab11 lam a.iclin.1.,,ton. Coot Of Ooodo llold Gro1a rxv.1: e OG S&l.U t r ""Aftrap Do.ar 1 or Do.ar vai aroae roh Vala. oroe1 Profit oa lal.u rat 1&1ari Trail t W.a loym fito.9rec latj.aa t lein.. Taa Utilitl AdYUt.Uilla Tr"l: and Dtt&ieDt lanliu ProtH l"caa. Mieca loea to tm!1 H. C rro,. n :

263 259 EAJUl!Cll STATllM!llT _Jj.part99Dt : Accont1A1 Perl.oc T r Aftra Dollar o! of Doll.or Vale S.l Val Sal Cot or Goode So d Beaiml1na ldeatort Prc:tM1 To Qood9 An1lab11 AH DdiA nvt:on Coit of Cooda d ' Acctatt.A1 PerioC Cro1a Pro r 1t oa Sal T r.r Doll.or l or of Dollar v.i CroH <iroh v.i Oro Profit on1ratin 11. 1a1 A.a ari &Doll V.11 Paw.nll taa &aa Bcaltta Deereci.attoe ltao.t 2:!.!H l.ml""&ac Util1t1aa Ad'tUtilin Traftl &Ad DtartaUOt h.ef!.1aa ProfaiOii& len_ic Miacallanao, To 1,.,. ra.1. it oa.1.a11

264 26 llam TATl!mft ref'8 lpplt Deparct Ac&. 1. Dollar,_,_ of TMr of Dollar 1 1 Yale, lat. or. llmid.. l.eh 'ton lat of Lnnd.a d tmr. cro *''. 1. Dollar of VallM Croal nr1t oa 1 t il 1 1 la ra11 ta.1...tit.drectt..,. UtllitiM AdYUtiaia to.!raftl l 11 Prota 1c of Yal. Dollar.

265 261 Accoatta.1 Per 1Dt Cot of llillllllaa!?sbt[ STATKl!fT O.,:ri.at Year Dollar of of Dollar Yal 1 Sal Vale. S.11.imlJ.D Sold la'hator Pre baa To rat Aa.Uable Le1a Dclt.1 lnftlltorv Coit of Good Sold. OroH Profit OD.!.lo U Accoa.t 1.D1 Perie, he; Doll.r of 1 or _. val k;roh Cro1e Vale Groaa Profit oo hl ODaratia. &Jm_ n&.lart Wa Panoll Ta!!.E!!> Ut1 rec:utioa l<mt le.j>!ln lr&DC ras UtilltlM Ad.YUtUiA Traftl and Dter<t 111 Profa Sardc 1Uocal1a tof'1 at4 e Prortt th1..:,_

266 262 llallllllq TATDll!lr Total nn.rttoaa M:coatiA1 Porl.< xft'ra Doar l Of or Dollar Vala Yala Sal Sal" of Kare be, i Coat Of' Cooda Sold leilmia l'\ircma Total 1 zavaotory Aftil&DJ.a Lee1 lnd1a lln eatory Coot of COOda Sol4 Gro ProUt OD lalh,.rat.in &Ad Service laco.e. Groa1 Pro it For Total 1.merat LOii Accomc!Aa hrioc, r bollar 1 of l Of Dollar v.i k:roea Qroaa v.i C:roaa Profit Par Total 1rtioa n1ratin n!._. Salarf.H lllm la Panoll Ta1 lo'm leoefita O.nreciatiOG at Aen.aira naraaca,., Utill.tl. Advartidna i. Tra'l. add DtartaiGMDt. Sanliaa Profetoaal lanlc Ki11Ce.ll.&Mi.e Total ratb 1rati.Qa Profit Otb«r aco Otber.&!lat Profit Ae Parceot nr Croe1 DcoM

267 263 AccoUDU.D& rerloc llal.\llc SBllT T r. Dollar or of Dollar '/al 'rot al Tota vai Crrent UHt C.h. Hnkatable Sec:itl. &ecelvabl Ad'laac Paid OD Prcb.a. Accna.d Stor Chern lhea.tori11 Pranaid. Other Cn.at AaHta Total. C t. Loo Ter. Aa11t1 DY tua C>cb.er Aaaata ProoartY Plt aod So.l_,_t Jntaibl Other Loa Ter AaaU Tot:a.1 LoD Tem Ua1t1 Total Uaata Crt L1ab111tl ot Pa Accocta Payable. Adc l.keiffd Por Sal AA:cned lace.a tas. Panbla O<ber Cneoc UbU1t1 to1 c:.rrt 1 LoD Tm L.UbiliU. t.od Tera )rebt Deferred taco Taa. Dlferrecl 1cc Credit Total Loa Term L1abiliti1a r.ad,ty. Tot:al Ubilitl and laity.

268 264 ltauo.uw.hll Acctl.111 Port ', ""lfti'ap J.dit latio Cl'nDt latio J.ii11id latio ant.ency htio ti '"t 1 bt.1itie1/la.itw r..11.&.htafll.n.it Prorita. 1 t latio1 cro11 ht1&na er at.a P1rt1 ' er had road rar 1i1,,.. tata Met latul"d OD 1 nc "," a.tn 11..a Met let.ra it 111Kall&MOU8 latioe Ar laymtor Crai.a rartill.sor Sood road Fara l1tttli11 Otblr o.rtmgtl AYara TU ects.o. Peri""" CO.Tel. DMratia /Qr'o11 Prnrtt!

269 265 DR.?MDr4L AllALtSts Diln.artntat CoatribtloG Salee Grain Den.art.at l PtUUer ""rt.at t Sd O.nart.sit l 14 Deoartat Para S2pU Def!rlDt Othel' Da""ftartMDU lednin ayei:o.tor Cret.D o.mrt.nt 1 Pertiliaar nartmot l Se O.oart.ant l read.oartot J rara SnnUai D9ri.rtat Other o. rt PrchH1 Ct'ain O.pertMDt l Prttllsar Dart_,,t l ;==! Parw.!!rpli.pal'tl!lot Otber oe.;;tt DdillL!!_TeDto 1( Grab Deoart.ant rertiliaar o.mrtot l Sart_t l, Depart.eat l rarw Spel1 Departnt Otber O.aartmlltl Coat of Cood1 SolA Cra11t rartilhr O.eartat l.i!,l.!j!?.l l '" i:t!. 11'9 t:lppuea_.2!'''l'et. l at.mr Deeartt.a l Croea Profit. Giaio o.pt l rartilbr O.ria.t l Seed O.eanot l Peed rtl!l1!. ralha l>e2!;rtnt Other Derart.nta l ft l Gedo O.part91111t l. rir!!jw.tnl. l T S_l!!p.!.r_ot l Paed_E._t l Para Sn_lht! rtat l. l Ottwr._!!rtata J Met Profit Crain!_tt = \. l FH'tiliser e!!tat l!!.l!ll!d' '"ed _J!e2!.rt.nt rarmrlli.e.!!.!.!_n_t ' l OtMr De111artn

270 266 Figre 2. llstration of how the Contining Financial Analysis Comparison Forms shold appear in the binder. " Crate. llzq Dollar ef Dollar H Do.ar of Do.ar of Dollar or er Doar 'fol a. a rer a. HZ& m k.,ciq Pwr" Ul ii:.. 'f'.,_,_ i1 'falao. 1a1 r or... Of'.. _Uc _iq Ac1a.,_ial A<1a1 1' Dollar Dollar er Dollar of Dollar or Dollar 1 or er 'fol 'fol kl.o 'fol 1 H llzr 1971 HU l!zl 'fol 'fol... ', U lllu. Tram,.., t 'fol