How agricultural production will be different in a sustainable future.
A sustainable agriculture is one which depletes neither the people nor the land. Does agriculture have a sustainable future? What is clear is that sustainability is no longer just a development concept, but rather at the heart of global growth and prosperity. There is a growing recognition that issues such as climate change, migration, population growth, urbanization, food production, energy and natural resource management are interconnected and intertwined and that they therefore cannot be addressed in isolation. The complexity and range of issues make it difficult to quickly achieve turning points for agricultural sustainability. Sustainable farming techniques revolve around optimally using natural resources while not harming the environment in any way.
The year 2008 is concerning for Merrimack Tractors and Mowers due to the company increasing costs and expenses, the company is experiencing financial anxieties. Due to a combination of higher costs in wages, labor, material, and energy as well as the weakening of the dollar, some of the business’ suppliers have has to increase their prices. This, in turn, has led to complications with the company’s inventory costing and the possibility of a strained relationship with president and chief operating officer Rick Martino.
In reference to Table 1, we are able to see some key figures in our income statements that are a cause for concern. As compared to 2007, the productivity of the Merrimack Motors has been affected and 2008 seems to be shaping first year where the increasing earnings trend will cease to exist. Compared to the previous year there was an increase in the raw number of sales of $13,000,000 but due to outer factors there was also an increase of $16,000,000 in the cost of goods sold and the $3,000,000 difference raises concerns. Overall, there is a company response of a $1,950,000 decrease in net income for the year following 2007 would be a breaking point. This $1,950,000 decrease the company would realize a 27.3% decrease in net income compared to 2007. While there are certain factors beyond the company’s control, some stakeholders will definitely worry about the leadership of our president and chief operating officer, Rick Martino. It is his direct responsibility to be able to respond and put forth dynamic leadership in order to mitigate the damage these external factors could produce and with the results that Table 1 exhibits, it is difficult to vouch for his performance.
Referring to Table 2 allows for a more accurate presentation for the LIFO method because it details the amount of units sold per specific quarter. In Quarter 1, selling 5000 units versus 10,000 units would affect the balance sheet by increasing the inventory by $7,000,000. This comes from the difference between the $14,000,000 cost of goods sold of the 10,000 units, and the $7,000,000 cost of goods sold of the 5000 units. If those 5000 units are not sold, then the remaining $7,000,000 stays in inventory. This also states the retained earnings are
