Louisiana Team Aged

Louisiana Team AgEd Louisiana Agriscience Education Curriculum

Course: Agriscience I

Unit: Introduction to Agriculture

Lesson: Develop a Simplified Recordkeeping System

LOUISIANA LEARNING STANDARDS AND GRADE LEVEL EXPECTATIONS

Learning Standards (LS):  ABF4 – Understanding the meaning of assets and liabilities  ABF6 - Explaining variable cost versus fixed costs  ABB1 – Identifying occupational preferences

Grade Level Expectations (GLE)  Gather and organize data in charts, tables and graphs (PS-H-A1)  Apply fundamental economic concepts to decisions about personal  Identify actions or conditions that increase productivity or output of the economy (E-1A-H2)

PERFORMANCE-BASED LEARNING OBJECTIVES. Instruction in this lesson should result in students being able to: 1. Develop a simplified record keeping system. 2. Initiate and Maintain records for the personal SAE.

LIST OF RESOURCES. Teachers may find the following resources useful in planning and teaching this lesson:

Textbooks  Agribusiness: Fundamentals and Applications, 2nd Edition

Web Sites  www.ffarecordbook.com  www.aged.ces.uga.edu  http://www.glenrosearkansasffa.org/glenroseffa/lesson%20plans.htm   http://www.knowledge.state.va.us/cgi-bin/lesview.cgi?idl=848

Other Resources. The following resources will be useful to students and teachers:  Other teachers  Financial Personnel

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 1 of 9 TERMS. The following terms are presented in this lesson:  Asset  Balance Sheet  Budget  Capital  Closing Inventory  Current Asset  Current Liability  Current Ratio  Enterprise  Expense  Income  Inventory  Net Worth  Liability  Non-Current Asset  Non-Current Liability  Opening Inventory  Working Capital

LIST OF EQUIPMENT, TOOLS, SUPPLIES, AND FACILITIES  Word processor  InFocus or equivalent projector  Calculator  Record book software

INTEREST APPROACH. In order to secure future financial loans or money considerations for business or personal purposes, a student will need proper, detailed documentation of his assets and liabilities. The best interest rates and considerations are given to those who have solid proof of sound financial practices.

In the event of an IRS investigation or taxing problems, a student needs to prove certain financial transactions, obligation, activities, and tax related deductions and depreciations.

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 2 of 9 SUMMARY OF CONTENT AND TEACHING STRATEGIES

Objective 1: Develop a simplified record keeping system.

Anticipated Problem: How is personal finance organized?

Content

I. Define terms A. Asset – The property or resources owned and controlled by the student B. Balance Sheet – A summary of the financial status of the student at a specific point in time. C. Budget – A formal written plan that projects the use of assets for a future time. D. Capital –The amount of money that can be obtained through borrowing or selling assets or the production of other goods. E. Closing Inventory – Items owned and on hand at the end of the year. F. Current Asset – Cash or other assets which can be converted to cash through the normal operation of the business during the year. G. Current Liability – Liabilities that can be paid off within the current year H. Current Ratio – A financial analysis that measures the liquidity by showing whether currents assets are greater than current liabilities (Current Assets/Current Liabilities) I. Debt-to-Equity Ratio – A measure of solvency. It is used to measure the decline of increase of value for the student by comparing past ratios (Total Liabilities/Net Worth) J. Enterprise – A way to categorize projects within an SAE K. Expense – The costs associated with running a project. L. Income – The amount of money received from selling a product or performing a service. M. Inventory – A physical count of all assets of a student. N. Net Worth – Assets – Liabilities O. Liability – The money or amount owed on the balance sheet. P. Non-Current Asset – Anything that cannot be converted to cash within the current year. Q. Non-Current Liability – Liabilities that cannot be paid off within the current year; long-term commitment R. Opening Inventory – Items owned and on hand at the beginning of the year S. Working Capital – Current Assets – Current Liabilities

II. Reasons for keeping records A. Monitor the progress of your business, your SAE, and/or personal finances.. B. Pay appropriate taxes C. Operate a profitable business D. Determine amount of assets and liabilities E. Avoid fines and penalties.

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 3 of 9 III. Discuss records that are needed A. Personal Information, Plans and Goals B. Agreements among all parties C. Enterprise Records 1. Goals 2. Present and Future Plans 3. Successful Practices D. Budgets E. Income F. Expenses G. Work Experiences H. Skills Acquired I. Earnings J. SAE Summary K. Inventory L. Leadership Activities M. Awards (FFA and other) N. Teacher SAE Visit Record

Objective 2: Initiate and maintain records for the personal SAE.

Anticipated Problem: Students do not know how to keep real world records.

Content

I. Introduce students to terminology associated with record keeping and the electronic record book keeping system.

A. Review the parts and concepts of the electronic record book with students. (Provide students with a paper copy of the electronic record book)

B. Have students to complete record book as related to their personal SAE..

C. Provide students with scenarios that re-enforce the importance of maintajning personal financial records.

REVIEW/SUMMARY. Use the student learning objectives as the basis for review and summary. Refer to listed website references for additional review activities. Have students tell the instructor how record books are an important asset that can be the determining factor in student career success.

APPLICATION. Have students complete a personal agricultural record book.

EVALUATION. Students should pass a written assessment with at least a 70%. Students should be able to accurately complete a personal record book.

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 4 of 9 Answers To Sample Assessment Activity 1

Hours Deductions

Soc. Total Fed State Sec. Year Employer Unpaid Paid Wages Tax Tax Tax Other Net Pay

1/1/07 to South 0 136 $858.80 $0.00 $0.00 $53.42 $15.49 $787.44 Ridge 12/31/07 Farms

Cherry 0 254 $1587.50 $0.00 $0.00 $58.57 $13.70 $1515.23 Hill Farms

TOTAL 0 390 $2444.30 $0.00 $0.00 $108.99 $29.64 $2302.67

Activity 2

INCOME RECORD

YEAR 2007 ENTERPRISE Calf Production

DATE ITEM QTY PRICE/UNIT VALUE CASH SALES

3/18 Ropes 3 $27.50 $82.50 $82.50

4/12 Angus cow 1 $750.00 $750.00 $750.00

5/1 Holstein calf 1 $100.00 $100.00 $100.00

TOTAL $932.50

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 5 of 9 CLOSING INVENTORY FOR THE RECORD YEAR ITEM QTY PRICE/UNI VALUE CURREN NON- T T CURRENT Hay 560 $1.25 $700.00 $700.00 Calf 2 $700.00 $1400.00 $1400.00 Halter 3 $22.00 $66.00 $66.00 Shears 2 $263.00 $526.00 $526.00 Feed 500 $16.00/cwt $80.00 $80.00 Inventory Category Totals $780.00 $1992.00 Total Value of Closing Inventory $2772.00 Total Income plus Closing Inventory $3704.50

Exercise 3

Using the following definitions put the following assets in the proper classifications.

Current Asset – Cash or other assets which can be converted to cash through the normal operation of the business during the year.

Non-Current Liability – Liabilities that cannot be paid off within the current year; long- term commitment

Current Non-Current X Land X Market livestock and poultry X Fertilizer X Hay Barn X Pasture Fencing X Feed X Tractor X Grass seed X Hay Bailer X Crops in Storage X Barrel Racing Horse X Brood Cow X Pleasure riding horse

SAMPLE ASSESSMENT:

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 6 of 9 Student Name:______

Activity 1 Directions: Use the following information to complete the Placement Experience Summary Sheet

In Beth’s freshman year, she worked for South Ridge Farms. She worked 136 hours and was paid $6.30 per hour. South Ridge did not withhold state or federal income taxes, but they withheld a total of $53.42 for Social Security and $15.94 for uniforms. Beth also worked for Cherry Hill Farms. She worked 254 hours and was compensated $6.25 per hour. They withheld $58.57 for Social Security and $13.70 for safety glasses and ear plugs. They did not hold out any taxes.

Hours Deductions

Soc. Total State Sec. Net Year Employer Unpaid Paid Wages Fed Tax Tax Tax Other Pay

1/1/07 to

12/31/07

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 7 of 9 SAMPLE ASSESSMENT:

Student Name:______

Activity 2 Directions: Using math skills and a calculator, complete the following chart.

INCOME RECORD

YEAR 2007 ENTERPRISE Calf Production

DATE ITEM QTY PRICE/UNIT VALUE CASH SALES

3/18 Ropes 3 $27.50 $______$82.50

4/12 Angus cow 1 $______$______$750.00

5/1 Holstein calf 1 $100.00 $100.00 $______

TOTAL $______

CLOSING INVENTORY FOR THE RECORD YEAR

ITEM QTY PRICE/UNIT VALUE CURRENT NON- CURRENT

Hay 560 $1.25

Calf 2 $700.00

Halter 3 $22.00

Shears 2 $263.00

Feed 500 $16.00/cwt

Inventory Category Totals

Total Value of Closing Inventory

Total Income plus Closing Inventory

SAMPLE ASSESSMENT:

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 8 of 9 Student Name:______

Activity 3

Using the following definitions, put the following assets in the proper classifications.

 Current Asset – Cash or other assets which can be converted to cash through the normal operation of the business during the year.

 Non-Current Liability – Liabilities that cannot be paid off within the current year; long-term commitment

Current Non-Current Land Market livestock and poultry Fertilizer Hay Barn Pasture Fencing Feed Tractor Grass seed Hay Bailer Crops in Storage Barrel Racing Horse Brood Cow Pleasure riding horse

Louisiana Team AgEd - Agriscience Education I Curriculum - Page 9 of 9