farm, farm inventory, agriculture economics department, net work
Cooperative Extension Service, South Dakota State College of Agriculture and Mechanic Arts
An inventory is a list of all the property which one owns. Inventories are an essential part of a farm record. Taken at the beginning and end of the year, they show whether one has been increasing or decreasing the value of livestock, grain, feed and supplies on hand. An increase in inventory represents income, even though it is not in the form of dollars and cents. A decrease in inventory may mean that some of the livestock, grain, etc. produced in previous years has been sold or used or that prices have declined. A statement of receipts and expenses for a year does not, therefore, show the profit or loss on the year's business unless opening and closing inventories are also taken. Inventories are not only an important part of all farm records, but when considered in connection with a record of bill payable and bills receivable, they furnish the basis for preparing a net worth statement. Two net worth statements made, one at the beginning and one at the end of the year, show the extent of one’s gain or loss during that period.
McCollough, H. D., "How To Take A Farm Inventory and Make A Net Worth Statement" (1924). SDSU Extension Circulars. 166.