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The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived. Hay can be purchased "up north" for $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high. The transportation cost was $6 per bale and a packing and loading cost of $1 was typical. The landed cost of a bale of hay this winter was:
Statement of Owner's Equity
A financial document showing the changes in the equity of a business over a specific period, including contributions, withdrawals, and earnings.
Trial Balance
An accounting report that lists the balances of all ledgers accounts to ensure the sum of debits equals the sum of credits, used as a check on the accuracy of the postings.
Withdrawals
Funds taken out of a business by its owners for personal use.
Income Statement
A financial document that shows a company's revenue, expenses, and profits or losses over a specific period.
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