1 / 17

INVENTORIES

INVENTORIES. Ag Business Management Spring 1999. Original PowerPoint Created by Mike White Modified by Georgia Agricultural Education Curriculum Office June, 2002. Objectives. Explain the importance of an accurate inventory. Determine when to inventory assets.

montana
Download Presentation

INVENTORIES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. INVENTORIES Ag Business Management Spring 1999 Original PowerPoint Created byMike White Modified by Georgia Agricultural Education Curriculum OfficeJune, 2002

  2. Objectives • Explain the importance of an accurate inventory. • Determine when to inventory assets. • Identify assets to be included in an inventory. • Describe the method used to determine value.

  3. ACRS Acquisitions Asset Cash accounting Capital Capital gains Collateral Consumable supplies Contingent liabilities Credit Depreciable assets Depreciation Glossary

  4. Depreciation methods Depreciation system Estate tax Financial statement Fiscal year Gift tax Income statement Inheritance tax Inventory MACRS Non-depreciable asset Glossary

  5. Glossary • Owner-equity statement • Salvage value • Straight line method • Useful life

  6. Why Inventories are Important • Owner Equity Statements • Income Statements • Obtaining Credit • Insurance • Estate Planning • Tax Management

  7. Owner Equity Statements • Show an accurate account of financial standing at a specific point in time. • Cannot develop balance sheet without completed inventory.

  8. IncomeStatements • Inventory needed to calculate income statement. • Changes in inventory affect income.

  9. Obtaining Credit • Financial institutions need accurate inventories before granting credit. • Assets may be used as collateral to secure loan.

  10. Insurance • Inventories needed to determine premium cost & coverage. • Inventories needed to determine payment in event of loss or damage.

  11. Estate Planning • Needed to plan an estate. • Always necessary in settlement situations.

  12. Tax Management • Inventory management key in tax management strategies. • Especially important with property tax valuation & capital gains tax.

  13. Items to be Inventoried • Items for resale • Consumable supplies • Capital Assets

  14. Inventories

  15. Inventories

  16. Inventories

  17. How to Determine Inventory Values • Cost Minus Depreciation • Current Market Value • Straight Line Depreciation • Accelerated Cost Recovery System (ACRS) • Modified Accelerated Cost Recovery System (MACRS)

More Related