Production.

Intermediate assets or non-current assets are typically held and used for several years. They include the working assets such as the breeding stock, equipment and machinery used in the production of farm commodities. These assets generally have a life expectancy of more than one year and generally less than ten years. Long term assets include those assets that have a useful life in excess of ten years and generally include assets such as land and buildings.

The liabilities are generally listed on the right-hand side of the report and are also divided into three categories: current, intermediate and long-term. The current liabilities are due now or will come due within the year, theIntermediate liabilities generally have a repayment period of less then ten years, and the long-term liabilities have a repayment period of more than ten years. Current liabilities are generally used to finance the production inputs, intermediate liabilities are used to finance the working assets such as breeding livestock, equipment and machinery, and long-term liabilities are used to finance the most permanent assets, such as land and buildings.

The net worth represents the difference in the value between the assets and the liabilities using the market value method. An incorporated business lists this equity (capital) under a number of different headings including the categories of capital shares, retained earnings and contributed surplus. The Net worth Statement is based on the following relationship: Farm plan produces two different formats for the Net worth Statement_ Includes as a current liability, the principal portion of the intermediate and long-term debt that will come due within the year. Or more elements. The same can be done on the financial side of the business.

Analyzing the results contained in a business plan is simply a process of looking at specific information contained in the financial statements, interpreting the results, and drawing some meaningful conclusions from this information. The key is to know what to look for, how to make some sense out of this information, and then Use this information in making informed management decisions. One way to analyze financial statements is to look at different ratios. Ratios are simply relationships between two different sets of financial data or values. Properly interpreted ratios can point to areas requiring further investigation and inquiry.