Tom Todd Case Name(s) Date Tom Todd has just completed his first year as a cotton farmer. during the past 12 months, he has leased a Tarm and the necessary equipment that he needed. Because he thoroughly enjoyed his experience, he has decided to pursue a farming career full time. To do this, he needs to buy land and equipment. Todd met Martha Delle, a loan officer at the Farmers Bank and Trust, about financing his purchases. He took a small notebook that he had kept during the 12 months he had been farming. Delle examined the notebook and returned it to Todd, indicating politely that his records needed to be formalized before she could evaluate his business for a loan application. Relevant excerpts from Todd's notebook include: Jan 1 Today I contacted Otto Hanna and leased his 100-acre farm. We agreed that I would pay him one-fourth of the gross proceeds from the sale of my cotton. The crop is to be sold as soon as possible after harvest. 1/5 I opened a bank account for the farm and deposited $20,000. 1/8 Went to town and bought fertilizer that cost $2,400; also rented a tractor from the fertilizer dealer for $900. I paid one-half of the total amount due and agreed to pay the remaining balance later. 1/9 Fuel for the tractor cost $80; paid in cash. 1/15 Went to town to return tractor, paid the balance owed to the fertilizer dealer. While in town I wrote a $65 check on the farm's bank account to pay for family groceries. 3/1 Bought cotton seed for $480 (a new hybrid kind) and rented a tractor and planter for $1,200; paid in full. 3/4 Returned the tractor. Fuel cost another $640 (cash). 7/29 No rain again --- 65 days and still counting. 8/27 Had the cotton sprayed in preparation for harvest (cost $1,800). The sprayer company gave extended terms --- don't have to pay until the end of next month. 9/4 Harvest day --- finally!! I paid the crew $1,480. 2/16 The cotton was processed today. Received $300 per bale, only 30 bales were produced. Extremely Hisappointing results, primarily because of the summer drought. Plan to pay the proper amount to Otto in a week. 23 Settled my obligation with Otto, balance due, $0. 1/1 Mailed a check to the spraying company. I had almost forgotten, until a phone call today. /18 Reached a decision to buy my own farm next year. Tom Todd Case Name(s) Date Tom Todd has just completed his first year as a cotton farmer. during the past 12 months, he has leased a Tarm and the necessary equipment that he needed. Because he thoroughly enjoyed his experience, he has decided to pursue a farming career full time. To do this, he needs to buy land and equipment. Todd met Martha Delle, a loan officer at the Farmers Bank and Trust, about financing his purchases. He took a small notebook that he had kept during the 12 months he had been farming. Delle examined the notebook and returned it to Todd, indicating politely that his records needed to be formalized before she could evaluate his business for a loan application. Relevant excerpts from Todd's notebook include: Jan 1 Today I contacted Otto Hanna and leased his 100-acre farm. We agreed that I would pay him one-fourth of the gross proceeds from the sale of my cotton. The crop is to be sold as soon as possible after harvest. 1/5 I opened a bank account for the farm and deposited $20,000. 1/8 Went to town and bought fertilizer that cost $2,400; also rented a tractor from the fertilizer dealer for $900. I paid one-half of the total amount due and agreed to pay the remaining balance later. 1/9 Fuel for the tractor cost $80; paid in cash. 1/15 Went to town to return tractor, paid the balance owed to the fertilizer dealer. While in town I wrote a $65 check on the farm's bank account to pay for family groceries. 3/1 Bought cotton seed for $480 (a new hybrid kind) and rented a tractor and planter for $1,200; paid in full. 3/4 Returned the tractor. Fuel cost another $640 (cash). 7/29 No rain again --- 65 days and still counting. 8/27 Had the cotton sprayed in preparation for harvest (cost $1,800). The sprayer company gave extended terms --- don't have to pay until the end of next month. 9/4 Harvest day --- finally!! I paid the crew $1,480. 2/16 The cotton was processed today. Received $300 per bale, only 30 bales were produced. Extremely Hisappointing results, primarily because of the summer drought. Plan to pay the proper amount to Otto in a week. 23 Settled my obligation with Otto, balance due, $0. 1/1 Mailed a check to the spraying company. I had almost forgotten, until a phone call today. /18 Reached a decision to buy my own farm next year