![]() ![]() The balance sheet represents a financial snapshot in time of the business. Subtracting liabilities from assets provides the calculated net worth, or equity, of the business. The right column lists the liabilities incurred by the business. The left column lists the assets of the business. The balance sheet is arguably the simplest of the four but can provide a tremendous amount of information about the financial health of your farm, including the ability to measure the liquidity and solvency of your business.Ī balance sheet includes two columns. ![]() The other three are the income statement, cash flow statement, and statement of changes in owner’s equity. ![]() The balance sheet is one of four financial statements critical to the management and operation of a farm business. For more information, see this OSU Extension fact sheet. Now may be a good time to use figures on the balance sheet to determine the financial health of your farm business. You likely completed a balance sheet at the end of 2022 or the beginning of this year. ![]()
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