Developing Statement of Owner’s Equity

What is a Statement of Owner Equity?

• A financial statement that analyzes how a farmer’s net worth, or owner equity, changed between two balance sheets
• Changes in net worth can be caused by a number of factors, including:
  • Earning and spending money
  • Paying taxes
  • Inheriting or receiving gifts and giving gifts
  • Having debt forgiven
  • Changes in asset value

Source: Getting on Track: Better Management through Basic Financial Statements, Rodney L. Sharp, John P. Hewlett, and Jeffery E. Tranel.