Title: Evaluate net worth and P&L statements.
Course: Agricultural Business Management III (18201-36) > Section: Evaluating the Agribusiness

Evaluation should include purpose and interpretation of the following financial statements:

- Balance sheet
  - Assets
  - Liabilities
  - Shareholder equity
- P&L statement
  - Revenues
  - Costs
  - Expenses
- Cashflow statement
  - Cash inflows
  - Cash outflows

Process/Skill Questions:

- What is meant by the net worth of a business?
- How is net worth calculated?
- What are liabilities? How are they identified?
- How would a loan institution use one’s net worth to determine qualification for a loan?
- How can one improve one’s net worth? .
- What is the difference between current and non-current liabilities?
- What is meant by non-cash income?
- What is an example of a non-cash expense?
- How does a business use a P&L statement?
- What is the difference between a cash flow and a P&L statement? When should one evaluate a P&L statement?