Agriculture Reference
In-Depth Information
Table 9.2
Income statement for Brookstone Feed and Grain company, year ending December
31, 2009
Sales:
Grain and Soybeans
$8,146,000
Seed
670,500
Fertilizer and Chemicals
2,213,000
Feed
1,810,000
Miscellaneous Supplies
402,300
Service Income
268,200
Gross Sales
$13,510,000
Less Returns, Allowances, and Discounts
100,000
(a)
Net Sales
$13,410,000
100.00 %
(b)
Cost of Goods Sold:
Grain and Soybeans
7,556,900
Seed
511,650
Fertilizer and Chemicals
1,791,420
Feed
1,534,380
Miscellaneous Supplies
330,650
Service Expense
0
Total Cost of Goods Sold
11,725,000
87.43 %
(c)
Gross Profi t (Margin)
$1,685,000
12.57 %
(d)
Operating Expenses:
(e)
Salaries and Benefi ts
210,000
1.57 %
(f)
Full-time Wages
166,000
1.24 %
(g)
Part-time Wages
10,400
0.08 %
(h)
Commissions
42,740
0.32 %
(i)
Depreciation
290,000
2.16 %
(j)
Maintenance and Repairs
58,000
0.43%
(k)
Utilities
56,990
0.42 %
(l)
Insurance
71,200
0.53 %
(m)
Offi ce Supplies/Expense
26,820
0.20 %
(n)
Advertising/Promotion
6,400
0.05 %
(o)
Gas and Oil
48,600
0.36%
(p)
Delivery and Freight
156,710
1.17%
(q)
Rent
6,300
0.05 %
(r)
Taxes, Licenses, Fees
48,160
0.36%
(s)
Miscellaneous
3,300
0.02 %
(t)
Payroll Tax
10,900
0.08 %
(u)
Bad Debt
3,290
0.02 %
(v)
Total Operating Expenses
$
1,215,810
9.07 %
(w)
Net Operating Income
$469,190
3.50 %
(x)
Other Revenue
18,200
0.14 %
(y)
Interest Expense
230,840
1.72 %
(z)
Net Income Before Taxes
$256,550
1.91 %
(aa)
Taxes
59,900
0.45 %
(bb)
Net Income After Taxes
$196,650
1.47 %
The balance sheet
As outlined above, the balance sheet represents a fi nancial summary of what the business
owns and owes and of the investment that the owners have made in the business (
Table 9.1)
.
Financial resources that have monetary value are called assets (a). Assets are usually listed
at the top or the left-hand side of the balance sheet (
Table 9.1,
a to s).
