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ISBN 974-598-005-6

t~s~~nicjn5;115t3~~vm5LU;17SLn~Flj

Financial Economics of Agricultural Co-operatives

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#ii1

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1 1 1

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115

1 1 6

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6 EC 583

,

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EC 5 8 3 7

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\EC 5 8 3

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EC 583 9

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10 EC 563

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EC 5 8 3 II

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3.1 n13F1-i

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1Ma r v i n Ai S c h a a r s . Cooperatives. Principles and Practices. Madison : University

o f Wisconsin-Extension. 1 9 8 0 . p - 3 6 .

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20 EC 583

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2 4

1I b i d . , p-128

EC 583

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3 0 EC 583

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7 6

268

418

22

784

3 . 0

1 0 . 7

1 6 . 6

0 . 9

3 1 . 2

84 3 . 8

206 9 . 2

440 1 9 . 7

20 0 . 9

7 5 0 3 3 . 6

260 l b . 4 2 0 0

1 , 0 4 4 4 1 . 6 9 5 0

8 . 9

4 2 . 5

7 2 0 2 8 . 7 6 4 8

4 4 4 1 7 . 7 3 9 0

29.0

17.6

1 7 6 7 . 0 1 5 0 6 . 7

1 2 6 5 . 0 9 2 4 . 2

1 , 4 6 6 5 8 . 4 1 , 2 8 0 5 7 . 2

2 , 5 1 0 100.0 2 , 2 3 0 1 0 0 . 0

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1 , 0 2 8

2 8 6

4 6

2 4 0

1 0 0 . 0

7 8 . 2

2 1 . 8

3 . 6

1 8 . 2

1 2 0 9 . 1

1 2 0 9 . 1

3 2 2 . 4

1 5 2 1 1 . 5

2 6 2 . 0

1 2 6 9 . 5

1 , 0 0 0 1 0 0 . 0

7 6 8 7 6 . 8

2 3 2 2 3 . 2

' 4 0 4 . 0

1 9 2 1 9 . 2

1 0 2 1 0 . 2

9 0 9 . 0

2 2 2 . 2

1 1 2 1 1 . 2

2 0 2 . 0

9 2 9 . 2

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3 4 E C 5 0 3

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l k ; l " l %i ; 3 1 i h = W 2 5 3 1 1 k X 2 5 3 2

( Mi a ~ : & u 1 M)

v3 1 i h wl a ! l h & !

2 5 3 2 2 5 3 1 + l u a u 1 ; u %l E J a -

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1 8 6 1 1 0 7 6 6 9

8 0 1 0 0

3 3 0 2 6 4

2 0 8 1 8 8

1 8 1 6

8 2 2 6 7 8

7 1 4 7 1 4 0 . 0

7 3 8 568 1 7 0 3 0

2 1 2 2 5 0 - 3 % - 1 5 . 2

2 4 2 0 4 2 0

1 , 6 8 8 1 , 5 5 2 1 3 6 8 . 7

2 , 5 1 0 2 , 2 3 0 2 8 0 1 2 . 6

7 6 8 4 - 8 - 9 . 5

- 2 0 - 2 0

6 6 2 5

2 0 1 0 . 6

2 1 2 . 5

1 4 4 2 1 . 2

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2 6 8 2 0 6 6 2

4 1 8 4 4 0 - 2 2

2 2 2 0 2

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2 6 0 2 0 0 6 0 3 0

1 , 0 4 4 9 5 0 9 4 9 . 9

7 2 0 6 4 8 7 2

4 4 4 3 9 9 5 4

1 7 6 1 5 0 2 6

1 2 6 9 2 3 4

1 , 4 6 6 1 , 2 8 0j 1 8 6

2 , 5 1 0 2 , 2 3 0 2 8 0

3 0

- 5

1 0

4 . 5

1 1 . 1

1 3 . 8

1 7 . 3

3 6 . 9

1 4 . 5

1 2 . 6

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5 6 0 , 4 0 0 1 6 0

4 3 4 3 5 0 8 4

3 2 0 2 5 0 7 0

1 , 3 1 4 1 , 0 0 0 3 1 4

4 0 . 0t

2 4 . 0

2 8 . 0

3 1 . 4

5 0 4 360 1 4 4 4 0 . 0

3 4 8 2 7 2 7 6 2 7 . 9

1 7 6 1 3 6 4 0 2 9 . 4

1 , 0 2 8 7 6 8 2 6 0 3 3 . 8

2 8 6 2 3 2 5 4 2 3 . 2

1 4 1 0

1 4 1 6

1 8 1 4

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4 2 8 . 6

6 1 5 . 0

1 8 1 7 . 6

2 4 16.9J

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EC 5 8 3 3 9

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4 0 EC 583

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2. ~ F l ' 7 l h I - I ~ & (Debt ratios)

3. & v m h r m & ~ ~ s (Profitibility ratios)

4. t t l ~ l d ~ Uf l ~ l U+ J ~ ~ ~ ~ (Coverage ratios)

EC 583 4 1

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= 822,000 - 208,000

784,000

zz 0.78

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hm~ulud w&l - Days in Yeasz-

--_

~ ~ j l i n l c b w ~ ~ l ~ t l u u a J ~ n w u Receivable Iurnover

Days in Year__-- - - - -

Annual Credit Sales

4 4 E C SE3

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=1,028,OOO

= 4.9 = 5

2 0 8 , 0 0 0

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2) n ? ~ ~ ~ M? & Wm I l ~ (Net profit margin)

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a. B5i$?unaiu;ni~sr~mwnrlrr7seJl?u (Profitability in Relation to

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(Interest Coverage Ratio)

2 , 0 0 0 , 0 0 05 6 0 , 0 0 0

= 3.57 l l i l

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2 , 0 0 0 , 0 0 0

4 , 0 0 0 , 0 0 0

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1. Operating Leverage

2. Financial Leverage

*

5.1 Operating Le v e r a g e

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S = vc + Fc . . . . ...-............................................ (1)

s = =mlhrmvmGlun i miafl

vc =5ifmflXa~tisiaMia~

Fc = mhm&ia~U3~

Vc + Fc z 5iUj7~53U7inniSw~Rau~i 7 Mix4

.

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x .=F c

P-VC

P = 5 1 n 1 h G 1 =,

2 0 0 U I M

x = 2 0 , 0 0 0200- l 00

,

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.

,

.

.

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2 0 , 0 0 0

= 3 0 0 - 1 0 0

= 1 0 0

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e l n p 7 x =

x :

Fc.. =

p ZY

vc =

x =:

=.

F cP - v c

h mn i s w~ ~ b u ~ ~ ~ u y u

&yl~~ = 30,000 UIM

s 1 n 1 %& = 2 0 0 l J 1 M

30,000- -2 0 0 - 1 0 0

300

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x = 20,0002 0 0 - 5 0

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9 0 , 0 0 0 1 8 , 0 0 0 2 0 %

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16,500 ' U I M

2 , 0 0 0 Ul l l

2 , 1 0 0 UI M

8 , 1 0 0 U - WI

26,500 UIM 2 8 , 2 4 0 UI M

54 0 u1n

1 , 7 2 5 UI W

1 , 5 0 0 UI M 1

1 , 2 0 0 UI M

1 , 0 8 0 UI M

7 9 2 UI M

g o 0 u 1 n

2 , 6 4 0 UI W

1 . 7 2 0 UI M

9,670 U-M 11,697 u 7 n

36,170 i ! i n 39,69? u in

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a n d p o l i c y , 5 t h . e d . , En g l e wo o d

EC 583

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h Y

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.

EC 5 8 3

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Abrahamsen, Martin A,, Cooperative Business Enterprises New York : M C

Graw-Hill, 1976.

Bradley, Joseph F. Administrative Financial Managements, Third edition

Hinsdale, Illinois : The Drydes Press, 1974.

Flippo, Edwin B. Management : A B haviorial Approach. Second edition.

Boston: Allyn and Bacon, 1970.

Griffin, Nelda et al, Cooperative Financing and Taxation. (Cooperative Infor-

mation Report I, Section 9) Agricultural Cooperative Service, U.S.

Departm,ent of Agriculture, February 1981.

Haimann, Theo, and Scott, William G. Management in the Modern Organi-

za t ion Second edition. Boston: Houghton Mifflin, 1970.

Hellriegel, Don and Slocum, John W. Jr. Management : A Contingency

Approach Massachusetts: Addison-Wesley, 1974.

Jenson, IM.C., and C.W. Smith Jr., The Modern Theory of Coporate Finance,

New York : McGraw-Hill Book Co., 1984.

Koontz, Harold and ODonnell, Cyril. Principles of Management : An

Analysis of Managerial Functions. Third edition. New York : M C

Graw Hill Book Co., 1964.

Maddock, Wallace J. Guidelines for Cooperatives in Developing Economics.

Financing Cooperatives in Developing Countries Madison : The

University of Wisconsin, 1969.

Rasmussen, A.E., Financial Management in Cooperative Enterprises. Sas-

katoon, Saskatchewan : Cooperative College of Canada, 1975.

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Schaars, Marvin A., Cooperatives, Principles and Practices. Madison : The

University of Wisconsin, 1980.

Van Horn, James C. Financial Management and Policy. Fifth edition.

Englewood Cliffs : Prentice Hall, Inc., 1980.

Weston, J.F. and E.F. Brighan, Managerial Finance. Seventh Edition. Illinois:

The Drydes Press, 1981.