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Inventory Cattle

Inventory is something that you sell. Prepaid supplies are used to assist your business. Raw materials are used to produce inventory. Inventory, prepaid supplies, and raw materials are all current assets. Inventory cattle are raised cattle, available for sale.  Current assets are available for sale. Fixed assets are part of your business to generate income. From Schedule F (Form 1040), Profit or Loss from Farming, they refer to mama cows as livestock and other resale items.  Implies that cow/calf operations buy cows to resale them.  Granted, a lot of cows are culled and sold, but I would not classify them as resale cattle. Calves put on feed and sold the following year, are inventory cattle.

When you do sell mama cows, the IRS wants to know how much you paid for those cows.  That amount is to be reported to the IRS on schedule F as “Cost or other basis of livestock or other items reported on line 1a”.  The “other basis” is to include any feed given to replacement heifers or bulls.

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What is a Derivative?

Just what is a derivative?  Well first let’s define a function.  A function is a relationship between any two dependent numbers.  One number is the independent variable and the other is the dependent variable.  This may be used for many applications such as supply and demand, marginal cost and fixed cost, rate of change, velocity, etc.

A derivative is the rate of change at a particular time, or the instantaneous rate of change.  On a continuous curved domain line, the derivative of a particular point is the slope, rise over run, of the tangent line to that point.  Average rates of change in data are based on multiply points.  A rate of change at a particular point is a derivative.

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Is Paper Currency Dead?

There are exactly 1,000 $100 bills in a bundle.  According to Federal Reserve Bank Services, a bundle is comprised of 10 currency straps of 100 bills each for all bills greater than $1.  A currency strap of $100 bills is worth $10,000 and a 10-strap bundle totals $100,000.  100 notes is the worldwide standard count for one strap – regardless of denomination.  10 straps always = one bundle.  A “bundle” of strapped cash a/k/a a “brick” contains 1,000 bills.

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Exchanging Assets for Assets

Exchanging assets sounds simple.  The process involves a method of payment, noting the amount paid, checking a statement periodically, and of course end of year taxes.  The process sounds simple.  For those of you who are movers and shakers in your community, as your assets grow, so does the process.

To individuals, assets may be their home, savings account, investments, gun collection, etc.  These items appreciate in value.  Other individuals consider their assets to be their truck, boat, ATV, or music collection.  People, these items are not assets.  An asset is something that will make you money.  Either way, it does not matter for individuals.  For individuals, assets (real or not) cost you money.  Assets make you money.  I use to have horses, now I have cattle.  Horses cost me money.  Cattle make me money.

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Track of Assets

Keeping track of assets sounds simple.  The process is relative.  Relative meaning it depends what assets you are tracking.  Assets include cash, cattle, feed, equipment, and other items which will make you money.  In other words, a return on your investment.  Some of these items are definitely easier to keep up with than others. 

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Opportunity Cost

I need for you to work this Saturday.  We are behind schedule and the whole crew will be there.  This is how your boss treats you.  You have always been a loyal and dependable employee and he knows he can count on you.  The time and a half, at $45 per hour, for the eight hour day comes out to $360.  The extra money is always appreciated. 

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