Objectives
The student is able to:
explain the different components of a balance sheet;
explain the difference between fixed and current assets;
explain the difference between long term and short term liabilities;
calculate the value of one component of a balance sheet in case information about other components of a balance sheet is given;
calculate the solvency using information from a balance sheet;
able to interpret a given or calculated solvency;
explain the most important components of a profit and loss account of a dairy farm;
explain the difference between variable and fixed costs;
calculate the gross margin;
interpret a given or calculated gross margin;
explain the difference between costs and expenses (or cash outflow);
explain (and calculate) depreciation;
calculate changes in the balance sheet and profit and loss account based on given or calculated costs and expenses;
calculate the profit based on information provided in a profit and loss account;
explain a given or calculated savings, reserve capacity and liquidity.
