Page 1: Financial Management for Agribusiness

Learning Objectives

• Importance of financial information systems in agribusiness.

• Use of financial statements in managerial decision-making.

• Understanding of financial statement terminology.

• Description and use of the balance sheet.

• Description and use of the income statement.

• Understanding of accrual accounting.

• Description and use of the statement of owner’s equity.

• Description and use of the statement of cash flows.

• Development and use of pro forma financial statements.

Understanding Financial Statements

• Profit is often referred to as the