HOW TO ESTIMATE PROFITS 



SUMMARY OF FINANCIAL HISTORY OF FARMS 



Average size of farm, acres 143.21 133 



Average area in crops (includes pas- 

 ture), acres 121.1 112 



Capital at end of three-year period $14,009 $8,893 



Capital at beginning three-year period 12,962 7,704 



Difference $*,47 $ I , J 89 



Interest on capital, $13,485, at 5 per cent* $674 $415 



Increase in capital per annum 349 396 



Average yearly receipts 3,613 2,208 



Average yearly disbursements jfi7- 1,221 



Average yearly cash balance 1,706 987 



Average yearly farm income 2,055 1,383 



Average yearly labor income I ,3^ 968 



These figures show the application of 

 principles enunciated in this chapter. A 

 careful reader will have no difficulty in 

 recognizing how the different items have 

 been obtained. For example, the difference 

 between the receipts and disbursements in 

 the first column gives the cash balance of 

 $1,706. The farm income, $2,055, is obtain- 

 ed by adding to the cash balance $349, 

 which is the annual increase in the capital. 

 The labor income is obtained by subtract- 



Obtained by dividing by two the sum of capital at begin- 

 ning and end of three-year period. 



133 



