Livestock Economics, Marketing and Business Management

Problems to solve

PROBLEM

• Prepare a Net Income Statement for a poultry farm operating with the following details. The farmer has a capacity of 10,000/ layer birds. He is operating in 4 hectare land with 10 dairy animals. Last year, by sale of eggs he has received, Rs 22,45,985/. The casual labour charges were Rs. 2,18,555.00/. Sold paddy for, Rs.50, 000.00/. By sale of culled birds he received, Rs.50,000.00/.
  • Concentrate cost was, Rs.40,000/. Electricity was, Rs25,455.00/and transport cost was, Rs. 2,45,455/. Milk sale was, Rs. 75,000.00/. He has sold old chaff cutter for Rs.10,000/ and purchased newer one for, Rs.30,000.00/ and by leasing it for other farmers he has obtained Rs.5,450/. The value of land has appreciated by, Rs.75,000. He has purchased 2 dairy animals for, Rs. 30,000/. Fuel charges were, Rs.7,780/. The farmer obtained dividends for, Rs. 10,000/. Insurance charges were Rs.11,000/. Depreciation value was Rs.25, 550/. The farm was Rs. 1, 55,550/. His own land rental value was Rs. 45,000/. Permanent labour charges was, Rs. 1,50,000
• Prepare a Net Income statement and work out the operating ratio, fixed ratio and gross ratios for a farm operating with the following details

Receipts	Amount	Expenses	Amount
Kharif crops		Casual labour	8900
Cotton	10500	Repair of building	5750
Ground nut	7000	Repair of equipment	2500
Sugar cane	24500	Seeds	4000
Rabi crops		Purchase of chemicals	3500
Paddy	18000	Feed and Concentrate	6500
Vegetables	12000	Insurance	2200
		Electricity	14500
Milk	12000	Transport cost	4500
Curd	500	Telephone charges	2000
Butter	1000	Land revenue	2000
Poultry	2400	Permanent labour charges	3500
Mutton	5000	Interest on fixed assets	3000
Machinery sold	3000	Depreciation	1700
Sheep Sold	9000	Sheep purchased	4500
Desi birds sold	2500	Cross bred cow purchased	12000
Appreciation of assets	2000	Power tiller purchased	8000
		Decrease in asset value	3000