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| I have not filled out a balance sheet in 35 or more years.
I figure every decision and purchase carefully.
I used to like to do them, but it takes a day or more to do one right.
I always remember my Dad saying either you farm or you don't.
I would bet he has never done one.
I agree it may be poor management, but if I am doing the best I can, all the time, what would I change?
I can see changing or not changing the land value on your balance sheet.
If you change it, one should get a better interest as you have a higher net worth
The downside is some of the guys in the 80's that raised their values, got denied loans as their net worth was dropping every year.
The banker said it was a sign of things to come and they were getting out while they could. Some of those guys were current on payments.
One can not hardly make enough to offset a 50% loss in land values in one year. | |
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Balance sheet adjustment
