Title: Identify strategies for effective debt management, including sources of assistance.
Course: Agricultural Business Management III (18201-36) > Section: Making Consumer Choices

Identification should include

- financial analysis using accrual adjusted income statements and balance sheets
  - debt structure
  - repayment capacity
  - asset utilization
  - efficiency
- budget planning
  - enterprise
  - whole farm
  - partial budgets
  - cashflow budgets
    - incoming cash
    - outgoing cash
    - borrowing needs
  - variance analysis
  - maintaining a record-keeping system
  - avoiding penalties.

Process/Skill Questions:

- How can the budgeting process help determine if corrective actions need to be taken after costs and income projected in the budget become reality and how the actual numbers stack up against projections?
- What is variance analysis?
- What are the three primary levers of profitability?
- What is the asset turnover ratio and what is it used for?
- Why is budgeting considered a process of looking forward?