Estimated completion time: 1 hour 20 minutes

In this unit from the Manage Your Farm Finances course series, we look closer at your three core reports–the balance sheet, income statement and cash flow statement. You’ll learn how to identify, read and understand the core financial statements, how they’re related and why they’re important. By understanding and interpreting these statements, you’ll gain confidence in speaking with business partners, family, bankers and accountants about the financial status and health of your farm business.

Lessons: 

• The balance sheet
• The income statement
• The cash flow statement
• How the statements work together

Learning objectives:  

• Differentiate between the three core reports: balance sheet, income statement and cash flow statement. 
• Explain what they measure and how they are related. 
• Interpret simple financial statements to answer simple questions about an operation.
• Identify and compile key report components for your business.