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Agriculture for Secondary Schools


          (a)  Determine  whether  the  farm  is  making  profit  or  not: The  analysis  indicates
              whether the farm is running at a profit or loss.

          (b)  Make informed managerial decisions: The analysis provides valuable data that
              helps the farmer in planning and decision making.
          (c)  Secure loans: Creditors or lenders normally assess the financial records analysis
              so as to determine whether you are credit worthy or not.

          (d)  Prepare farm budgets: The analysis enables you to draw estimates for future
              income and expenditures.

          (e)  Assess the tax chargeable: The analysis helps you in collaboration with tax
              department to estimate the amount of tax that can be charged so that the farm is
              taxed fairly.
          (f)  Evaluate assets and liabilities: The analysis helps you to assess your farm’s
              ability to pay what has been borrowed.

          Activity 15.1
          Perform the following tasks:
          1.  In groups, compute  and  compile  the  gross margin  analysis  and  net  worth
              statement of your school or nearby enterprises of different accounting periods
              then find out the trend of the following for successive accounting periods: (a)
              sales (b) expenses (c) profits (d) asset values (e) enterprise(s) or item(s) more
              money spent on (f) net worth (g) debts
          2.  Summarise the findings in your portfolio.
          3.  Outline the lesson(s) you have learnt in this activity.
          4.  Share your findings in class.


          Activity 15.2
          Write a summary of what you have learnt from this chapter in your portfolio.



          Exercise
          Answer the following questions:
          1.  What is net worth statement? How is it used in managing farm business?
          2.  How can you calculate gross margin? How is it used in managing farm business?











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   AGRICULTURE FORM 3   9.11.2022.indd   322                                              10/01/2025   12:32
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