12 
BULLETIN 994, U. S. DEPARTMENT OP 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. 
fn cocporstlci with OfHcs of Farm Manaj 
0. S. Departtnent of Agriculture. 
STATEMENT OF RECEIPTS AND EXPENSES. Sheetz/o. 
Form of ... &&& 
p. o @d£*ia£, c9€& . 
JO 
DATE. 
•-Evs— ;e=: = ■— ;-- 
On hand — Cash balance 
cash rece;ved. cash paid out. 
onsard 
4- ^.cu^APJQ.Q^dn.d£.ty.tlidii^ 
.5... M<^Afr2t™/f:te&_£7i: accx^m^'.....42. 
.7 j^^tL'^jnitk^CM^.J^^Jisaf^/. J - 
. 7. .^C^£^cmf/c^Mte4^^,.^J^y^r 
00 
20 
24- 
24- 
25 
25 
26\ 
..... ^O.^U^^.^n^r 
M 
545 05 
50 00 
20 Ago 
135.6L 
2250 
40 00 
U.25 
3 
£\ 7S% 
op\ 
2& 
2/5 
.60 QO. 
.50. 
6.J5Q 
1 42 00_. 
. j /2 00_ 
25. ...... 
2 00 
30.00 
yo TE.— Tu :zi\ :z~z-~-{ iV-Ji v :U szrne at 
LVer.r.^; en \z-.i zr.d ■-. l-z-Jk. .'.'.: -<,: arr.pve 
Cash totals . . 
Ctzsh. balance . . 
383 ¥6 
1 ; 
2 35 00 
-748..V6-. 
sis**: (^^£ul^. 
Fig. 5.— Cash account sheet. 
