Inventory of the Legacy:. Dr. Bart Eleveld Extension Economist, Farm & Ranch Management Agricultural & Resource Economics Department. Balance Sheet and other lists . Need to know what’s being transferred. Personal possessions of emotional value Where are possessions on “heirloom scale”?
Dr. Bart Eleveld
Extension Economist, Farm & Ranch Management
Agricultural & Resource Economics Department
Balance Sheet and other lists
Cash, bank accounts and inventory items readily convertible to cash
Machinery, breeding livestock
Land, buildings and improvements to real estate
Separate or combine with business?
Notes and accounts payable within 12 months
Loans payable over 2-10 years
Loans payable over 10+ years
Net Worth (+ or -)
Change in market valuationUseful way to inventory physical and financial assets and liabilities
+ Net Worth
Total (Long-Term): Solvency
Balance by definition:
Assets = Liabilities + Net Worth
Net Worth = Assets - Liabilities
There’s a copy of it in your binder. And we’ll look at it a piece at a time.
Blank worksheet for FINPACK in binder
Excel spreadsheets on website:
Cash and bank accounts
Inventories of supplies
Inventories of marketable commodities
Accrued interest (if loan payments were made on balance sheet date) and accrued taxes
Notes and accounts payable
This year’s principal on long-term loans
Useful life of > 1 year and < 10 years.
Machinery and vehicles
Notes and loans on intermediate assets (2-10 years)
Useful life of > 10 years
Real estate: land, buildings and other improvements to land.
Potential for large differences between cost and market value
Notes and loans on long-term assets: usually mortgages and contracts on real estate
Deferred or contingent liabilities: If you liquidate, who besides creditors do you have to pay?