Page 333 - Agriculture_Form_Three

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?

Student’s Book Form Three
322

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