Grennell Farm

In: Business and Management

Submitted By bcaatienza22
Words 489
Pages 2
Grennell Farm
(President and Fellows of Harvard College)

BACKGROUND | Grennell Farm is a corporation that is engaged in the production of wheat. Located in Iowa, the 2,000-acre farm was established by Jeremiah Grennell more than 20 years ago. The sudden demise of its founder has led the farm to be transferred to the leadership of, Mr. Grennell’s niece and chosen heir, Denise Grey. She was informed of her inheritance early in 2010.

Ms. Grey works as an AVP in the consumer credit of a large New York bank. With the huge distance between Iowa and New York, she is carefully studying the advantages and disadvantages of retaining the farm’s ownership. | POINT OF VIEW | Third Person (Consultancy) | STATEMENT OF THE PROBLEM | Should Denise Grey sell the farmland at its current valuation or retain the farm as its investment? | AREAS OF CONSIDERATION | 1. Favourable increase in present Farm Commodity Prices 2. Profitability of the Farm 3. Appreciation of Farmland 4. Distance 5. High Liquidity that is available for credit | ALTERNATIVE COURSES OF ACTION | 1. Retain the farm land as investment | | ADVANTAGES | DISADVANTAGES | | 1. Favorable Price Fluctuation 2. Profitable farm 3. High Appreciation of Farmland | 1. Huge Distance from farmland to workplace2. Low extra liquid be available for credit | | 2. Sell the Farmland | | ADVANTAGES | DISADVATAGES | | 1. Eradication of problem with distance 2. High Extra Liquid Assets for Credit | 1. Unable to profit from price fluctuation2. Opportunity Cost of letting go of the farm’s profitability3. Not able to maximize Farmland appreciation | RECOMMENDATION | Denise Grey should retain the farmland with the combination consideration of Price fluctuation, profitability, and appreciation of the land to reap a total economic profit of 2.22 million…...

Similar Documents

Grennell Farm

...GRENNELL FARM Income Statements For the Year Ended December 31, 2009 Method: Sales Collection Production Sales $ 522,000 $ 462,400 $ 614,100 Less: Cost of goods sold Beginning inventory $ - $ - $ - Production $ 107,730 $ 107,730 $ 107,730 Less: Ending inventory $ 15,390 $ 25,650 $ - Cost of goods sold $ 92,340 $ 82,080 $ 107,730 Gross margin $ 429,660 $ 380,320 $ 506,370 Less: Other expenses $ 183,000 $ 183,000 $ 183,000 Net Income $ 246,660 $ 197,320 $ 323,370 GRENNELL FARM Balance Sheets As of December 31, 2009 Current Assets Cash $ 30,900 $ 30,900 $ 30,900 Accounts receivable $ 59,600 $ - $ 151,700 Inventory $ 15,390 $ 25,650 $ - Noncurrent Assets Land $ 375,000 $ 375,000 $ 375,000 Buildings and machinery (net) $ 112,500 $ 112,500 $ 112,500 Total assets $ 593,390 $ 544,050 $ 670,100 Liabilities (current) $ 33,000 $ 33,000 $ 33,000 Owners’ equity8 Common stock and APIC $ 457,500 $ 457,500 $ 457,500 Retained earnings(Balancing Figure) $ 102,890 $ 53,550 $ 179,600 Total owners’ equity $ 560,390 $ 511,050 $ 637,100 Total liabilities and owners’ equity $ 593,390 $ 544,050 $ 670,100 Sales(Delivery) Method GRENNELL FARM Income Statement For the Year Ended December 31, 2009 Sales(180,000*2.90) $ 522,000 Less: Cost of goods sold Beginning inventory $ - Production(210000*.513) $ 107,730 Less: Ending inventory(30000*.513) $ 15,390 Cost of goods sold $ 92,340 Gross margin $......

Words: 906 - Pages: 4

Conventional Farms vs. Organic Farms

...Jasmine Soto Conventional Farms Vs. Organic Farms When explaining to someone the advantages and disadvantages of both conventional and organic farms, it is important to start off with the basics: defining the two. A conventional farm is a farm which uses growing methods which are the most universally used and widespread. Conventional farming is not dedicated to alternative methods of growing foods or raising livestock which means they participate in the use of chemical plant protectant, fertilizers, in addition to heavy animal farming. When describing organic farming, one would say organic farming is a farming method by which farmers develop and cultivate a plethora of vegetables, dairy products, grains, meat and of course fruits. Organic farming was originally developed as a way to reduce the amount of pollution which may be produced. In addition organic farming was also widely used to preserve water and soil quality. The idea of organic farming puts into use the natural methods to avoid any harm to the farming. One of the most notable advantages of conventional farming is un-doubtfully that crop turn out amongst conventional farms is larger than that of organic farms, while at the same time using the same amount of land. Advanced farming tools and machinery are used along side what is considered “sophisticated, aggressive plows” which also assists with the larger sized crops. Because conventional farms are producing mass amounts of crops and livestocks frequently,......

Words: 1324 - Pages: 6

Farm Girl

...| Farm Girl | Assignment 1.1 Summary and Personal Response | | | | The essay that I’ve chosen to write about is “Farm Girl” by Jessica Hemauer. The author’s most important point is how she can’t have the same life as her friends. Since she’s a farm girl, she has to make that a priority in her life. Regular students make their social lives their main focus. For Jessica, doing her farm chores is more important than extracurricular activities in school. Although she’d rather play a sport or join a club; milking cows comes first in her life. “I hate this!” (Roen, Glau, & Maid, 2011, p. 83). Jessica doesn’t like being a farm girl. That statement is said by all the siblings every morning on the way to put on clothes. Jessica states, “It seems our daily lives operate in shifts, not like a real family,” (Roen, Glau, & Maid, 2011 p. 84). Jessica and her siblings wake up five hours before school to do chores, while other students wake up one hour earlier. Jessica hates being at lunch because she can never engage in conversations with her peers because it’s always about clubs before school and sports after. At some point in Jessica’s life she has a turnaround of events in her favor. “In eighth grade …I become the basketball team’s starting point guard,” (Roen, Glau, & Maid, 2011 p. 85). Jessica finally gets what she has been asking for. She becomes the point guard on her basketball team. It proved difficult because it took a great deal of her time to......

Words: 758 - Pages: 4

Farm Girl

...Summary of Farm Girl Anderson Jude ENG 115 Professor Chris Swindell Strayer University October 23rd, 2013 The short story Farm Girl is an in depth look at life through the eyes of a young girl growing up with her family on a farm. Throughout this non-fiction story the author Jessica Hemauer, does an amazing job of describing her surroundings to pull the reader in and make them feel like they are there with her. She begins as a younger girl describing how difficult it is for a child to awake from a deep slumber, and immediately get to work doing jobs some grown men would cringe at. “Cleaning out various huts and pens and laying down fresh straw are part of our daily duties” (Hemauer, 2011 p. 84). She continues by explaining how this is the worst of the jobs she and her siblings endure, and how the dust makes it difficult for them to breathe, but they all know there is no use in complaining because it has to be done (Hemauer, 2011). She continues her story into her teenage years describing vividly the life and struggles of a teenage girl, especially one with so many responsibilities and restrictions. While in eighth grade she describes to the reader how unusual her life is in comparison to her classmates, and how she dislikes not being able to participate in extracurricular activities. However, she finally does get the chance to be normal as she defines it. “In eighth grade I really want to play basketball, and after begging and pleading with my parents, they finally......

Words: 631 - Pages: 3

Grennel Farm not grasp the notion that although we feel reasonably sure that some accounts will go bad, we do not know which ones they will be. Even when they do understand this, the chain of transactions involved in estimating bad debts, writing off specific accounts, and booking bad debts recovered, is complicated and not easy to follow. If experience is any guide, it is quite likely that at the time this chapter is taught the press will be describing a company that has gotten into trouble for overstating its revenue or understating its bad debt or warranty allowance. Discussion of such a situation would be interesting. Cases Stern Corporation (A) is a straightforward problem in handling accounts receivable and bad debts. MacDonald’s Farm, by contrast, has few technical calculations but provides an excellent opportunity for a realistic discussion of alternative ways of measuring revenue and of valuing assets. Joan Holtz (A) is a different type of case. It is a device for raising several discrete, separable problems about the subject matter of the chapter, from which the instructor can pick and choose those he or she wishes to take up in class. (It probably is not feasible to discuss all of them.) Bausch & Lomb, Inc., is an actual case situation involving revenue recognition. Boston Automation Systems, Inc. involves a review of the company’s revenue recognition practices in the light of the SEC’s SAB 101. Blaine and Mason, LLP, deals with the issue of gross......

Words: 14148 - Pages: 57

Animal Farm

...Animal Farm An Allegory of the French Revolution By Travis Booker English 1302 Mrs. Simpson April 18, 2012 What is an allegory? Allegory is a device used to present an idea, principle, or meaning, which can be presented in literary form, such as a poem or novel, in musical form, such as composition or lyric, or in visual form, such as in painting or drawing. It is also seen in scriptural passage. Allegory communicates its message by means of symbolic figures, actions, or symbolic representation. Allegory is generally treated as a figure of rhetoric; a rhetorical allegory is a demonstrative form of representation conveying meaning other than the words that are spoken. As a literary device, an allegory in its most general sense is an extended metaphor. As an artistic device, an allegory is a visual symbolic representation. An example of a simple visual allegory is the image of the grim reaper. Viewers understand that the image of the grim reaper is a symbolic representation of death (Kennedy 142). During a time when there was much change and the spirit of rebellion was all around, Animal Farm was written by George Orwell. George Orwell used allegory in his novel Animal Farm to parallel the Russian Revolution and resulting totalitarian regime to the revolutions of the animals and the pigs' corruption of absolute power. The novel's characters, events, and corruption of ideas paralleled the pattern that took place among the Russians during and following the...

Words: 2472 - Pages: 10

Natureview Farm

...Natureview Farm success, growth strategy and financial analysis of the three options under consideration Natureview Farm yogurt originated in 1989 and was based on the family recipe that used only natural ingredients, and no artificial flavors or thickeners. That was one of the main points of differentiation from bigger competitors such as Dannon, Yoplait, and Breyers, and gave the Natureview farm yogurt the privilege of a niche producer. Moreover, Natureview Farm’s yogurt’s average shelf life was 50 days, 20 days longer than that of competitors. That way special production process and ingredients helped Natureview Farm to save on efficient supply chain that competitors needed to reduce shipping time to their distributors. Strong reputation for high quality and great taste, as well as high perception of natural ingredients helped the company to grow quickly to national distribution. The Natureview brand occupied the organic & natural segment that was not served adequately through the normal retailing chains at that time. Natureview Farm was considering two growth strategies: through Supermarket Channel and through Natural Foods Channel. Supermarket Channel usually dominated by large manufactures such as Dannon and Yoplait. The product takes just four steps before it gets to final consumer. In this channel an 8oz cup sells for $0.74. However, in order to sell its yogurt in the supermarket channel, Natureview farm has to pay a “slotting fee” for each flavor......

Words: 1570 - Pages: 7

Grennell Farm

...Mental Health The Daily Western If You Want To Loose 10 Pounds Without Workout, Try These 8 Tips. The Daily Western Ads By OffersWizard READ FULL DOCUMENT Full access is free for premium users • SAVE TO LIBRARY (0) • DOWNLOAD • PRINT • REPORT THIS DOCUMENT • Facebook • Twitter • Google+ • Send • RATE THIS DOCUMENT • 4.5 • 1 • 2 • 3 • 4 • 5 RELATED DOCUMENTS The Farm ... B8 ABP First Paper – The Farm Situation... 7 Pages 1 View The Farm ...and uncle owned a farm and it was one of the best places I can remember being at. “The... 1 Pages 51 Views farm ...Kylon Brown Chapter 1: An Introduction To Franchising WHAT IS A FRANCHISE? A franchise is the... 4 Pages farms ...A farm is an area of land, or, for aquaculture, lake, river or sea, including various... 1 Pages Farm ...Farming on a Whole New Level Lamesha Collins Mrs. Akshata Patil Comp 1003 October 8, 2012 Although... 2 Pages 51 Views CITE THIS DOCUMENT APA (2012, 11). Grennell Farm. Retrieved 11, 2012, from MLA MLA 7 CHICAGO...

Words: 415 - Pages: 2

Animal Farm

...17 The pigs Snowball, Napoleon, and Squealer adapt Old Major's ideas into an actual philosophy, which they formally name Animalism. B "In the end, it was named the Battle of the Cowshed, since that was where the ambush had been sprung." P.44 "Old Major's Dream" is the major cause of the Battle of the Cowshed. Though the animals don't know when the rebellion will take place, but when it happened the were all surprised that a rebellion had taken place and they had won. In the Battle of Cowshed, the animals in Animal Farm fought Mr. Jones and his men. Mr. Jones WAS the farmer of Manor Farm, but since the animals won the Rebellion, it is now called Animal Farm and owned by animals. The pigeons alerted the animals that Jones and his men were going to attempt an invasion on the farm to get it back. Jones and his men broke the barred door holding sticks while Mr. Jones was holding a shotgun. The animals fought wisely and Snowball, the cleverest pig on the farm, led the attack. Snowball ran right up to Jones and attacked him. Jones tried to fire at Snowball, but the sheep behind Snowball was shot and killed. Jones fell to the floor and his gunshot right up and fell into the mud. Boxer ran right up to a boy and attacked him with his tremendous force. The boy fell face first into the mud. Jones and his men were retreating, and the animals had won. After this, they all saw Boxer trying to make the little boy in the mud move, but he did not stir. Boxer didn't intend to take a......

Words: 2276 - Pages: 10

Grennell Farm Case

...Grennell Farm (Case from Accounting Text and Cases twelfth edition) Early in 2006, Denise Grey was notified by a lawyer that her recently deceased uncle had willed her the ownership of a 2,000-acre wheat farm in Iowa. The lawyer asked whether Grey wanted to keep the farm or sell it. Grey was an assistant vice president in the consumer credit department of a large New York bank. Despite the distance between New York and Iowa, grey was interested in retaining ownership of the farm if she could determine its profitability. During the last 10 years of his life, Jeremiah Grennell had hired professional managers to run his farm while he remained in semiretirement in Florida. Keeping the farm as an investment was particularly interesting to Grey for the following reasons. 1) Recent Grain deals with foreign countries had begun to increase present farm commodity prices, and many experts believed these prices would remain high for the next several years. 2) Although the number of small farms had decreased markedly in the last 20 years, Grennell’s use of mechanization and new hybrid seed varieties could be very profitable. 3) After some downward movement in the 1990’s the value of good farmland in Iowa was beginning to appreciate at about 10 percent a year. Included in the lawyer’s letter were data on revenues and expenses for 2005 and certain information on balance sheet items, which are summarized below Beginning Inventory 2005 Wheat production Shipped to grain......

Words: 1084 - Pages: 5

Farm Girl

...Farm Girl In Jessica Hemauer’s essay “Farm Girl," Jessica explains the ups and downs of living on a farm. Jessica shares her feelings of anger, sadness, and jealousy, but we also see how truly grateful she is about the life lessons she gained as a Farm Girl. Jessica gets up at 5 am with her two sisters, Angie and Melissa and her brother, Nick, so they can help their father with the morning chores. After getting up they start their morning routine of “washing their faces, brushing their teeth and taking turns on the white porcelain throne” (Hemauer 2011). Then they make their way to the basement where their mom keeps their clothes, so the house does not smell like a barn. After they are dressed they head to the barn to start their morning chores. Melissa and her father milk the one hundred cows, Nick and Angie feed them, and Jessica being the youngest must feed all the calves. That is her favorite chore; she feels it gives her some responsibility. Jessica does not realize that this is the “beginning of a lifetime of responsibility" (Hemauer 2011). When Jessica was young, she did not realize that all of her hard work and sacrifices were teaching her a crucial lesson in life. She only felt the sadness of being different from her classmates, and that her responsibilities on the farm made it hard for her to have a normal life. In the eighth grade, she wanted to play basketball, she asked her parents, and they agreed to let her join the team. They made her promise......

Words: 705 - Pages: 3

Animal Farm

...Animal Farm is a novel that appears at first glance like a children's book metaphor to represent Russia, but it's much broader than that, it's the mistakes of all men with absolute power. Animal Farm is a historical novel that illustrates the idea that absolute power corrupts absolutely and with corruption comes lack of equality among the people. George Orwell uses: metaphors, fables, satire, illusion, and characterization to convey the ideas that men make mistakes with too much power. Animal Farm, like a metaphor, conveys a deeper level of meaning beneath the children’s story about animals on a farm. One main point Orwell was trying to show his audience is too much power can corrupt any government. This can be viewed through the character Napoleon. As the story progresses, the pigs gradually obtain more power, which they used to take advantage of the less intelligent animals on the farm. When the animals were weeding the turnip field, "They worked diligently, hardly raising their faces from the ground, and not knowing whether to be more frightened of the pigs or of the human visitors" (Orwell, p.52). This shows how Orwell was trying to warn the audience that no matter what the person's intentions are, power can corrupt anyone. Animal Farm can also be a fable that is used to teach lessons on morality. One lesson can be that greed brings out the worst in everyone. For example, the pigs were driven by their own personal interests until they became just as bad as their......

Words: 876 - Pages: 4

Animal Farm

...A TEACHER’S GUIDE TO THE SIGNET CLASSIC EDITION OF GEORGE ORWELL’S ANIMAL FARM By HAZEL K. DAVIS, Federal Hocking High School, Stewart, OH S E R I E S W. GEIGER ELLIS, ED.D., E D I T O R S : UNIVERSITY OF GEORGIA, EMERITUS and ARTHEA J. S. REED, PH.D., UNIVERSITY OF NORTH CAROLINA, RETIRED A Teacher’s Guide to the Signet Classic Edition of George Orwell’s Animal Farm 2 INTRODUCTION Animal Farm is an excellent selection for junior and senior high students to study. Although on one level the novel is an allegory of the 1917 Russian Revolution, the story is just as applicable to the latest rebellion against dictators around the world. Young people should be able to recognize similarities between the animal leaders and politicians today. The novel also demonstrates how language can be used to control minds. Since teenagers are the target not only of the educational system itself but also of advertising, the music industry, etc., they should be interested in exploring how language can control thought and behavior. Animal Farm is short and contains few words that will hamper the reader’s understanding. The incidents in the novel allow for much interactive learning, providing opportunities for students to dramatize certain portions, to expand on speeches, and to work out alternative endings. The novel can be taught collaboratively with the history department as an allegory of the Russian Revolution, allowing students to draw parallels...

Words: 9582 - Pages: 39


...which helps consumer make safe choices. The company also offers different types of eggs including, organic, brown, white, Omega 3 and liquid eggs. 3. The supply chain Step 1: Food Production Gray Ridge Egg Farms picks eggs up at over 200 egg producers across South Western Ontario. These farms specialize in breeding and harvesting hens supplying Gray Ridge only quality egg. Once the eggs are picked up they are transported to a production plant either in Listowel or Strathroy. Gray Ridge than washes the eggs to sanitize them and then performs candling where an inspection process occurs where eggs are passed over a bright light where the interior quality of the egg is inspected. These eggs are than graded based on their solidity and interior quality. Grading stations must apply for licensing from the Canadian Government and must abide to the food safety and quality act of 2001. Step 2: Transport and Trade Gray ridge provides eggs locally to customers in Ontario, and have the Foodland Ontario symbol on their products to make people proud of buying local The facilities are located in, Strathroy and Listowel, Ontario. They distribute products to markets though Windsor, Sarnia, London, Niagara Falls, Toronto, Timmins and Sault Ste. Marie. At a Gray Ridge farm cooler, the eggs are put in categories in specific areas and when the shipping crew arrives they start loading the trucks. First, they build skids and then load those skid in the truck. Trucks are build......

Words: 2185 - Pages: 9

Sustainable Farms vs. Industrial Farms

...Sustianable Farms vs. Industrial Farms Jonathan Castro DeVry University Unfortunately animal abuse is a common theme. When one thinks of animal abuse the first thought might be a dog or cat being mistreated by the owners or not being properly fed. We think of zoo animals being mishandled and we think of circus animals and the brutal and extensive training they endure. I say brutal because many of these circus animals are whipped by their handlers. Seldom do many people think of the torture farm animals go through before their body parts are shipped across the nation to grocery stores. Such harsh treatment to farm animals could be prevented if more people were aware of the living conditions industrial farm animals are placed in and the con’s of buying from a local farm. There is a nationwide epidemic of industrial farms torturing farm animals to be placed at your local grocery store. Beef cattle while in transport spend hours without food and water causing stress, which leads to illness. The cattle are skinned alive before having their throat sliced. Dairy cows wear out very quickly due to the constant stress of having to produce large quantities of milk. The chickens also have it very rough in industrial farms. They are cramped in tight spaces with not even enough room to spread their wings. Many of these chickens, due to the unnatural conditions they are placed in, develop respiratory illnesses among other disorders such as weak bones, which easily break...

Words: 1080 - Pages: 5

Comments 0 | Kindan no Koi de Ikou | The Assets