A snapshot of what the farm owns (assets), owes (liabilities), and the owner's stake (equity) at a single point in time โ the accounting equation in formal statement form.
Use variable names from the panel above (e.g. FV, r, n) โ or type numbers directly: 10000 / (1 + 0.08)^10
current_assets
Cash, receivables, inventory โ liquid within 1 year ($)
current_assets = 165000
fixed_assets
Tractor, land, combine โ long-term assets ($)
fixed_assets = 230000
current_liab
Accounts payable, accrued wages โ due within 1 year ($)
current_liab = 20000
long_term_liab
USDA loan outstanding balance ($)
long_term_liab = 40000
๐ก You can also enter values directly in the formula: 10000 / (1 + 0.08)^10
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โฌ Export Calculation
Exports a plain .txt file with your expression, formula, all variable values, result, and educational notes โ ready to paste into any report, Word doc, Notion, or Google Docs.
The exported file includes the formula in standard mathematical notation โ you can paste it directly into Excel, Google Sheets, or back into FinanceSheep.
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Learn: Balance Sheet
PART VII โ ACCOUNTING ยท Educational Guide
The Core Idea
The income statement covers a period. The balance sheet is a photograph โ it freezes the farm's financial position at one moment (say December 31) and answers: if Jake sold everything and paid every debt today, what would he have left?
How It Works
Assets = Liabilities + Equity โ the balance sheet IS the accounting equation. Assets split into current (liquid within 1 year) and non-current (fixed). Liabilities split the same way. Equity = retained earnings accumulated over the life of the business. Key ratios: Current Ratio (liquidity) and Debt-to-Equity (leverage).
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Real-World Example: Jake's Dec 31 balance sheet: Current Assets: Cash $145,000 + Receivables $20,000 = $165,000. Fixed Assets: Land $160,000 + Tractor (net) $70,000 = $230,000. Total Assets $395,000. Current Liabilities $20,000 + USDA Loan $40,000 = $60,000. Equity $335,000. Check: $395,000 = $60,000 + $335,000 โ. Current Ratio = $165,000/$20,000 = 8.25x โ very liquid. D/E = 0.18x โ low leverage.