BUSINESS PHASES 41 



question is to compare two financial statements, one on 

 the basis of starting with the 800-lb. feeder, and the 

 other a 1000-lb. feeding steer. Assuming that the total 

 gains and cost of gains would be the same in either case, 

 the statement would be something as follows: 



One 800-lb. choice feeding steer at $4 . 50 per cwt $36.00 



66 bushels corn at $0 . 40 per bushel 26.40 



One ton clover hay at $7 . 50 per ton 7.50 



Total disbursements $69.90 



Credit 75 pounds pork at $5 per cwt 3.75 



Net cost of steer at time of marketing $66. 15 



Granting that the 800-lb. feeder would gain 405 

 pounds in a six-months' feeding period, during which 

 time each steer received 66 bushels of corn and one ton 

 of hay, the steer, when finished and ready for the mar- 

 ket, would weigh 1205 pounds. According to the state- 

 ment of expenditures made above, this 1205-lb. steer 

 would have cost at time of marketing $66.15, and in 

 order that the cattle feeder should come out even, that 

 is, neither make nor lose by the enterprise, the steer 

 would have to net approximately $5.49 per cwt. in the 

 feed lots at home. Since it was assumed that the steer 

 cost $4.50 per hundredweight this would mean a $.99 

 margin between buying and selling price. For sake of 

 comparison, let us now assume that we buy a 1000-lb. 

 feeding steer, of the same quality, for finishing: 



One 1000-lb choice feeding steer at $4.50 per cwt . .$45.00 



66 bushels corn at $ . 40 per bushel 26.40 



One ton clover hay at $7.50 per ton 7.50 



Total disbursements $78.90 



Credit 75 pounds pork at $5 per cwt 3.75 



Net cost of steer at time of marketing $75.15 



Starting with a 1000-lb. steer that gains 405 pounds 

 in six months, a 1405-lb. steer is produced, which to 



