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Wisconsin bankers' farm bulletin
(1913-1919)

Wisconsin bankers' farm bulletin. Bulletin no. 6: business methods on the farm PDF (1.0 MB)



    For beat results, list and value each machine and tool by itself. If
one
does not desire such detail, minor equipment can be listed and valued in
smaller
                             groups, as for instance, carpenter's tools,
black-
Machinery and Equipment.  smith's tools and garden tools. But no matter
                             which method is used in inventorying minor
equipment, it is always advisable at the time of taking the first inventory
to
make a complete list of all tools. For later inventories the value of such
equip-
ment may be determined by subtracting 10 per cent from the value of the pre-
ceding inventories and adding the value of new tools. At just what value
to
put machinery into an inventory will depend on cost, age, usefulness and
efficiency. A binder that cuts 20 acres will last longer than the one cutting
100
acres a year. A machine stored indoors while not used will last longer than
the one left outdoors, etc. The inventions of new and more efficient machines
may
cause sudden drops in the values of the old machinery. As so6n as the binder
was put on the market the value of the reaper was decreased rapidly. Special
crop machinery will decrease in value suddenly in case the growing of that
crop
Is discontinued. As example of this would be the sugar beet equipment in
localities where the growing of beets has been discontinued. The average
rate
at which machinery will decrease Is not always of much use, but may serve
as
guides. The following are some of the annual rates of depreciation for the
more common machines:
      Hay rakes, grain binders, mowers ............................ 8%
      Drills and seeders, corn planters, corn cultivators, gang plows.. 7
%
      Hay loaders. manure spreaders ........ 12%
      Walking plows and heavy harness ............................ 6 %
      Harrows ............................... 9 %
      Wagons and disks........................................... 5%
    Cash on hand and in the bank, as well as all notes and bills that the
farm
business has coming from others, should be determined and inventoried accu-
                  rately. By depositing in a bank proceeds of all produce
and
Cash and Notes. stock sold, and payment of all bills by bank check, the annual
                  "profit or loss" may be more easily ascertained
and annual
Inventories more readily prepared.
    Debts. All debts should be included in the inventory. it is advisable
to list
each mortgage and note and bill separately, and to give the name of the party
to whom it is drawn.
    The chief aim in taking an inventory should be to make It show the actual
conditions of the farm business. In order to make the inventory show this
It
              is necessary to be conservative in all valuations. To be able
to
Valuations.  place an exact value on the different items of farm property
is,
              of course, difficult, but fortunately this is not absolutely
neces-
sary for the accuracy of the inventory as a whole will not vary directly
with
the correctness of the valuation of any one item. If one acquaints himself
with
current prices and tries to be fair in his estimate he is not likely to be
very far
off on the value of any one item, and what mistakes he may make will most
likely offset one another. In case of the herd he may iate some of his cows
a
little high, but he is just as apt to value other cows a little too low,
and the
chances are that by adding together all of the values his result would be
very
close to what the herd would sell for.
Subject for February Bulletin: "How to Run a Cow-Testing Aoo.tion".


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