Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1921-12-07
FARM INVENTORY.
Helps Owner to Determine His Pro-
fit Or Loss.

Helps Owner to Determine His Pro-
fit or Loss.
Farming is a business, and like
other business men the farmer
should know which way he is going
financially. To drift along year
after year not knowing whether he
is going toward success or failure is
not the practice of successful bust
ness men, and it should not be the
practice of farmers.
To gauge progress by an increase
in cash in hand or to measure loss
by additional debts incurred without
taking into account decreases or
increases in the value of all prop
erty owned, often leads to false con-
illusions. The storekeeper is we'll
aware of this, and his annual ''stock
taking" is nothing more or less than
the making of an inventory or list
of property, without which he lacks
accurate information concerning his
profits and losses. Inventories are
not difficult to make, and the United
States Department of Agriculture
has found thu. they are of great
value to any farmer who is striving
to better his condition. They over
come obstacles and place his bust
ness affairs on secure basis.
There is no best time of the year
to make an inventory for everybody
and under all circumstances. Each
one must decide for himself the date
most convenient. In deciding, how
ever, the most important considera-
ton is to select time of the year
before the seasons work in the field
begins. It will save estimating
large quantities of farm produce on
hand II the inventory | staken as
late in the spring as possible before
field work begins.
Although any day will do, it is
generally found best to select the
first day of some month, and a fairly
good guide in any section will be
the date upon which tenants custom
arily change farms. The best inven-
tory date may vary from January 1
in the cotton belt, to April 1 in New
England and other northern states,
and for special farms special dates
are often required.
If no list of the farm property has
ever been made, it is we'll to start
preparations by going over the farm,
field by field, and building by build
ing, taking each item as it is found
In this way nothing is missed. The
listing can be done in any memoran-
dunn book or on loose sheets of
paper. Two persons can do this bet
ter than one, especially in barns,
tool houses, and places where many
articles are found. One person can
search out the various pieces of
property, calling each item in turn
to be set down on the list by the
other. The classifying and apprais-
ing can be done at the same time, if
desired, by listing the items coming
under each class of property on
separate pages or sheets, but for the
within doors as the items are being
copied into the property book, if one
is used.
All property owned comes under
the head of resources or assets
These may be subdivided into ply
steal or tangible property, and f.
nancial, or intangible. The value of
the physical property must be esti-
mated and appraised. The financial
property has face value, which
under any conditions ordinarily met
with on the farm needs no ap-
praisal. The physical property may
be grouped under the following
heads: Land, buildings, other
permanent improvements, work
stock, cattle, swine, sheep, poultry,
machinery and tools. farm produce,
farm supplies, growing crops. The
financial items include cash on hand,
cash in bank. accounts receivable,
and notes receivable. BY receivable
is meant debts owing to the farm.
In no case should list of liza
bilities-bills and accounts owed by
the farm be omitted from the in
ventory. Liabilities are an Offset to
the resources. When all the items
with their valuations have been en-
tered the work is finished by sum-
ming up the valuations. This is
best done by adding each page
separately and carrying the totals
to the last page where they may be
conveniently added to attain a grand
total. The liabilities are summed
up in the same manner. When the
sum of the liabilities is subtracted
from that of the resources the re-
mainder is the net or present worth.
BY this is meant the net valuation
to the owner of the farm property
after all debts are accounted for, or
in other words the net amount of
capital invested in the farm business
at inventory date.
Impure blood runs you down-makes
you an easy victim for disease. For
pure blood and sound digestion-Bur-