ACCOUNTS RECEIVABLE: Amounts due from others from sale of goods and/or services that are generally due within 10-60 days.

CASH ON HAND: Total of all demand deposit accounts (checking account) balances for all applicants and the business. Also, this includes savings accounts that are very liquid-meaning they are available today (i.e.: passbook savings, etc.). Installment funds, reserve funds, and APA funds can be included also. An average balance would be more appropriate than a high or low balance unless taken from a fiscal year end balance sheet. It does not include certificates of deposit, stocks, bonds or mutual funds.

COLLATERAL VALUE: Estimate of the fair market value of collateral offered for the loan request.

CURRENT LIABILITIES: Total obligations of the applicants and business that must be paid within the next 12 months. Includes accounts payable, operating loans, current portion of term debt, accrued expenses, etc.

CURRENT PORTION OF TERM DEBT: Principal owed on term debt for the farm/business that will be paid back within 12 months. This does not include the loan requested on this application.

DEPRECIATION EXPENSE: Sum of depreciation (decline in value of fixed assets due to wear, deterioration and obsolescence), depletion( using up natural resources such as oil from a well) and amortization (decline in value of an intangible asset such as a patent over its useful life) during the income statement period.

GROSS FARM SALES: Gross dollar amount of all goods and services sold by the farm/business during the income period. Use historical numbers for a representative year or an average of several years. Include cost of resale livestock if this figure was netted out of gross income.

HOUSING PAYMENTS: Whole dollar amount of monthly housing payments (rent or mortgage) for all applicants.

INTEREST EXPENSE: The farm/business’ total annual interest paid on debts during the income period.

LOAN AMOUNT REQUESTED: The sum total of all credit requested by the applicant at this time (i.e. total commitment), including renewal and/or refinanced amounts including stock. Amounts of other outstanding loans with the Ass’n should not be included

NET FARM PROFIT: Net income of the farm/business after all expenses (including interest, taxes and depreciation) have been deducted. Can be on a cash or accrual basis. Use historical numbers for a representative year or an average of several years.

NONFARM INCOME: Total annual gross income from all non-farm sources not already included in “net farm profit”, including salary and non-farm investment income for all applicants.

PRIMARY FARM PRODUCT: The primary product raised on your farm. Use non-farm if other gross income is greater than 75 percent of the total of net farm income and non-farm gross income.

TOTAL ASSETS: The total economic resources of the applicants and business. Includes current, intermediate and long-term assets. It does not include any assets being purchased with the loan proceeds.

TOTAL LIABILITIES: Total of all obligations of the applicants and business that must be paid in the future. Includes current liabilities, bank loans and mortgages, etc. It does not include the loan requested with this application.