RECORDS AND ACCOUNTS 

 CURRENT EXPENSES 



389 



Finally, in order to get a bird's-eye view of the whole result of 

 the year's operations, showing return upon investment and labor 

 income, the following general summary is made. "Capital" here 

 means the total of real estate, live stock, machinery, feed, and supplies, 

 and cash on hand at the beginning of the farm year the investment 

 on which interest should be charged. 



The labor income represents the amount of money the farmer has 

 left after paying all business expenses of the farm and deducting 

 interest on the money invested in the farm business. In addition to 

 the labor income the farmer has the use of the farmhouse and the 

 products that are furnished by the farm toward his living, such as 

 fruit, garden vegetables, dairy products, and fuel. In other words, 



