understanding a financial statement / school to work employment plan understanding a financial...
TRANSCRIPT
Understanding a Understanding a Financial Financial
Statement / School Statement / School to Work to Work
Employment PlanEmployment Plan
Horticulture 22.01, 2.02
What kinds of records should businesses keep?
Assets Liabilities Net worth Profit and loss statement Cash receipts Non-cash receipts Invoice
Assets
Things that one owns and completely pays for.
• Example: Your car after all payments have been made.
Assets
Current Assets-items quickly converted to cash or that will be sold within 12 months– cash– checking– savings– stocks or bonds
Assets
Non-current-items that have a useful life or more than one year– land– machinery– breeding livestock
Liabilities
Things that you owe money to other people for or debts
• Example: My Visa
Liabilities
Current-debts that are due to be paid this year– fertilizer and feed bills– tractor and building payments– part of the mortgage due this year
Non-Current-debts not due this year– mortgages not due this year
Net Worth
One’s assets minus their liabilities.
• You have $3000 in the bank, but you owe $1750 for your bills. Your net worth is $1250.00.
Net Worth
Current Assets + Non-Current Assets=Total Assets
Current Liabilities + Non-Current Liabilities=Total Liabilities
Inventory
An itemized list of things owned by a business with the beginning value and depreciated value
Inventory
Non-depreciable-items that will be used or sold within a year– feed– supplies
Inventory
Depreciable-items that have a useful life of more than one year and lose value because of age, wear or becoming out-of date because of technology advancements.
Land is NOT depreciable property– tractor– computer– chainsaw
Profit and loss statement
A financial statement of a business that reports the profit made by the business or the losses incurred.
Cash receipts
Cash that is paid for services or merchandise.
Non-Cash receipts
Payment for services in other ways than cash.
Invoice
Shows items and prices for things that have been bought from a certain business.
Other business records
Labor Materials Travel
Debt-to-Equity Ratio
Used by banks and lending institutions to decide whether or not to lend money to specific people or businesses
Debt-to-Equity Ratio = Total Liability
Net Worth
School to Work Employment Plan
Factors to consider when selecting a career:– Standard of living
• pay, location
– Personal contact• working with people or things?
– Educational Requirement– Skills Required
School to Work Employment Plan
Location of employment Your interest, likes and dislikes Working conditions Working hours and time for leisure
activities Retirement benefits Your health and happiness
Steps in Choosing a Career
1. Consider your interest, abilities and characteristics”
2. Narrow the field of jobs3. Study the requirements4. Plan an alternative5. Prepare a plan for preparation6. Be willing to pay the price
• education, dedication
7. Get work experience!