12 



BULLETIN 994, U. S. DEPARTMENT OF AGRICULTURE. 



when improvement of farm organization is the object, the weakness 

 of this latter point of view is apparent. 



Recognizing that the farmer should know the opportunity cost 

 results and attempt to obtain a satisfactory organization that will 

 provide the greatest net profit, it may be of interest in this connection 

 to show examples that make it clear why farmers continue to produce 

 at prices apparently ruinous from an opportunity cost basis. 



The difference between the opportunity cost and the actual oper- 

 ating expense in a live-stock enterprise is particularly striking. This 

 is true because the assumption that feed consumed by live stock 

 could be marketed at local farm prices is an important feature of 

 computing the cost on this basis. 



STATEMENT OF RECEIPTS AND EXPENSES. 



Sheet Ho. 



10 



farm of .... 

 P.O. 





ITEMS— DESCRIPTION. 



CASH RECEIVED. 



CASH PAID OUT. 



On hand — Cash balance 



'zio^C.S.tic?^ ?iw&j<U7u^ 



forward 



Jj.cuaAt- /OQ ^kn.d^iy.tl<dn^ 



42 



00 





54-5 

 SO 



as. 



00 



.20 



00 



200.. 

 <30\QQ. 



TTOTE.— The cash balance should be the s 

 U\c amount on hand and in bank. Always compare 

 cash balance teitfi cash on hand and carry balance 

 forward whep, correct. 



Cash totals 

 Cash balance 



.383 



¥6 



205100 



7*8 W6 



Remarks: 



Signed: 

 Fig. 5.— Cash account sheet 



(Sil^Z. 



