Title: Calculate the financial health of a farm business.
Course: Operating the Farm Business (18301-III) > Section: Developing and Analyzing Agricultural Production Records

Calculation should include

- using data from the balance sheet, income statement, and cash flow statement to determine
  - net worth
  - profitability
    - profit margin
      - net profit margin
      - gross profit margin
      - operating profit margin
  - financial ratios, financial metrics, and other measures of performance (e.g., liquidity, operating efficiency, solvency)
    - return on equity (ROE)
    - return on assets (ROA)
    - internal rate of return (IRR)
    - cash flow yield
    - net present value (NPV)
- appraisal value of farm assets
- computation of farm liabilities.

Process/Skill Questions:

- How would one construct a balance sheet?
- How would one analyze a balance sheet for liquidity and solvency?
- How is an income statement used to determine net profit margin?