Lesson 2: Calculating Gross Income Of Your Beef Cow Herd

Lesson 2: Print these pages by double clicking on each page icon and it will load a larger version into your computer. You can then use your browser's print command to print that page out. Then, click the left arrow on your browser to go back a page, and you can select the next page. Do this until all pages are printed out.

The bottom of his page presents a description of Lesson 2.

Lesson 2 focuses on calculating gross income for your beef cow herd. Correct economics requires that we go beyondCash Income to an Accrual Adjusted Gross Income value.

Most ranchers stop with the cash flow income. For example, if you start out the year with 225 beef cows and end up the year with 250 cows, your business produced the extra 25 beef cows and your business analysis need to take this non-cash production into account. Cash Accounting ignores all internal production.

The opposite is also true if you start the year with 225 cows and end the year with 200 cows. Proper economic analysis also has to take the 25 cow reduction into account. Again, Cash Accouning failes to do this.

You can print out each figure/page presented above by double clicking the figure and a larger version will load into yourcomputer. Then, use your browsers print command to print the page. After printing all pages, assemble the pages according to page number and you will have lessor 2.