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Roanoke, IN | I'm putting together my balance sheet. How come if I owe $200/acre for renting a farm it is just an expense, but if I have a $200/acre land payment it is a liability and goes against my working capital?
How come I must list my full land payment due this year in December as a liability, but I can't list the crop value harvested 2-5 months prior to it due as an asset, again eating away at WC? It would be different if land payment was due in March and all the crop came off in November.
If you've had a stable operation for 30 years I can see how this doesn't really amount to a hill of beans. But if you're newer and in expansion mode, it can really work against you and create aperception of problems that don't exist. | |
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I need a banksplination
