Farm Finances Webinar: Cash Flow Statement Basics

[@melaniemcquinn4660]

Well done! Quite helpful!

[@melaniemcquinn4660]

This was awesome. I arrived late and could register thus missed the live session. My question is if what to do with capital purchases and sales? If I buy a truck or tractor, do I record this there? If not what do I put in these places? It would seem these ought to be on the balance sheet?

[@HarukiYamamoto]

For my own internal books, I depreciate the asset over several years. If it cost X, I divide X by the number of years I expect to use the asset. X/n is the value I use. Any salvage value at the end of life of the asset is a bonus. So while doing my capital budgeting, the income or savings I expect from the asset should pay back 100% of the value of the asset during its life. For the external books, I let my CPA go with whatever the law dictates.