Introduction to HorticultureBusiness Records

Plant: Ajuga

Term: Profit & Loss StatementBalance Sheet

Bugle WeedAjuga reptans

• Herbaceous, flowering, perennial, evergreen• Hardiness Zones: 3 to 9• Size: 3 to 4 inches • Partial shade to shade• Foliage: Glossy medium green 3 to 4 inch oval-shaped

leaves in tight rosettes • Blue-violet flowers in spring • Spreads by stolons• Uses: containers &

groundcover

Profit & Loss Statement

• Profit & Loss statement – financial statement that shows all income and expenses for a period of time

Financial Statements

• Profit and loss– Shows income– Shows expenses– Difference is a:

• Profit (made more than you spent)• Loss (spent more than you made)

Sample Monthly PL• Income

– Flower sales: $5,600– Wedding sales: $4,200– Total Income: $9,800 9,800

• Cost of Goods $3,200 -3,200• Gross Profit 6,600• Expenses

– Rent: $1,200– Salaries: $3,200– Insurance: $ 200– Utilities: $ 500– Vehicle $ 700– Taxes $ 900– Advertising $ 200– Total $6,900 -$6,900

• Net -$ 300

Balance Sheet

• A financial picture of a business at a particular moment in time. Shows assets, liabilities, and owner’s equity.

• + What you own (asset)

– What you owe (liability)

= Net Worth (equity)

Assets

• Everything of value that is owned by a person or company – Buildings– Vehicles– Supplies– Bank accounts– Customer base– Goodwill– Trademarks or copyrights

Liabilities

• Anything for which a company is legally bound or obligated.– Debts - loans– Bills that are due and not paid yet– Payroll taxes withheld but not sent in yet.

Equity

• Owner’s equity is the owner’s rights to the assets of the business. – Amount of money that the owner puts in– The amount of money made that an owner

does not draw out.

Sample Balance sheet

• Assets• Current Assets

– Cash 250– Bank 8,500– Accts Rec 4,200– Inventory

2,200

• Property– Equip 5,000

• Intangible– Goodwill

3,000

• Total 23,150

• Liabilities• Current Liabilities

– AP 600– Loan 3200– Payroll 800

• Total Liab 4,600

• Equity– Owners Cap 1,000– Retained Earn 17,550

• Total L&E 23,150

Questions

• Where would you look to find the balance on a loan?– P/L or Balance Sheet

• Where would you find the amount in your check book?

• Where would you find the amount you spent on plants?

• Where would you find your plant sales?

Today

• Compost pile• Check potatoes• Weed Veg garden• Weed Hort garden• Build compost pile

– Need circ. Saw & square from Ag. Shop

• Lots of work – don’t try to hide• Daily grade depends on work ethic