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Cows on Golf Course

Ag Finance 101

Haviland State bank is providing our customers with some priceless information on the basic principals of Living/Working in the world of an agricultural business. See below for more information.

 

Calculating a Liquidity Ratio

Example of calculating a liquidity ratio
Current AssetsCurrent Liabilities
CheckingOperating Note
2,5008,000
GrainIncome Tax Due
10,0001,000
GrowingcorpAccrued Interest
Invest: 5,0001,500
Calves to sellCPLTD
5,0007,000
Prepaid FertilizerSeed Financing
1,5002,000
Acc/ReceivableCredit Card
1,000500
Total CATotal CL
25,00020,000
Current Assets
Checking
Operating Note
2,500
8,000
Grain
Income Tax Due
10,000
1,000
Growingcorp
Accrued Interest
Invest: 5,000
1,500
Calves to sell
CPLTD
5,000
7,000
Prepaid Fertilizer
Seed Financing
1,500
2,000
Acc/Receivable
Credit Card
1,000
500
Total CA
Total CL
25,000
20,000
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