Analyze financial information and reports to monitor business performance and support decision making.
Analysis should
- consider data collected and efficiency factors
- income statements
- balance sheets
- cashflow statements
- inventory reports
- break-even analysis
- return-on-investment (ROI)
- taxes
- income
- property
- sales
- employment
- estate
- observe efficiency factors attained, P&L statements, partial budgets, and other financial assessments
- evaluate efficiency, profitability, net worth, and financial ratios.
Process/Skill Questions:
- Why is it important to summarize records at the end of the year?
- What are some examples of ways to keep records of an agricultural business?
- How might these forms be helpful in applying for loans or expanding one’s operation?
- How can year-end reports be used to improve a business? How can a record summary be used to apply for FFA awards?