the income statement doesn't show when revenue is collected or when expenses are paid. It does, however, show the projected profitability of the business over the time frame covered by the plan.

Like the income statement, the cash-flow statement ... cash paid to suppliers and employees; cash paid for operating expenses, interest and taxes; and cash revenue from interest dividends.

We call these items prepaid farm expenses. The tax rules are very specific ... If you are in this situation, farm income averaging can help you reduce the tax burden. The bottom line is to discuss ...