. - . . = = . 1. (25 points) Using the information from the balance sheet and income statement provided, calculate the ratios or measures listed below. Assume the value of unpaid labor (withdrawals for family living expenses) is valued at $37,500. Current Assets Current Ratio Current Liabilities Working Capital = Current Assets Current Liabilities Current Assets-Inventory Quick Ratio Current Liabilities Total Liabilities Debt to Asset Ratio Total Assets Total Equity Equity to Asset Ratio Total Assets Total Assets Asset to Equity = Total Equity Capital Structure compare current and noncurrent assets vs. current and noncurrent liabilities NFIO + Interest Expense - Value of Unpaid Labor Rate of Return on Farm Assets Total Assets NFIO Value of Unpaid Labor Rate of Return on Farm Equity Total Equity Interest Expense Average Interest Expense Total Liabilities NFIO + Interest Expense - Value of Unpaid Labor Operating Profit Margin : Total Revenue Total Revenue Asset Turnover Ratio Total Assets NFIO Net Farm Income from Operations Ratio Total Revenue Total Farm Expenses-Depreciation Expense-Interest Expense Operating Expense Ratio Total Revenue Total Farm Expenses Total Expense Ratio Total Revenue = . . = S $ 530,815 197,045 Income Statement For Year Ending, December 31, 2020 Revenue Cash crop sales Cash livestock sales Inventory Changes Crops Market livestock Livestock production sales Government program payments Change in value of raised breeding stock Gain/loss from sale of culled breeding stock Change in accounts receivable Other farm income (5,000) 2,400 $ S $ S S $ $ 47,447 400 2,400 Total Revenue $ 775,507 $ S 25,000 35,000 Expenses Purchased feed and grain Purchased market livestock Other cash operating expenses: Crop Expenses Livestock Expenses Fuel/oil Labor Repairs and Maintenance Property Taxes Insurance Utilities $ S $ S $ $ $ S 72,358 12,760 29,179 55,907 4,800 4,540 7,470 13,150 $ S $ 3,000 4,500 $ 55,000 Adjustments: Accounts Payable Prepaid Expenses Accrued Expenses Depreciation Total Operating Expenses Cash interest paid Change in Interest Payable Total Interest Expense Total Farm Expenses Net Farm Income from Operations 322,664 S $ 28,000 (500) S S 27,500 350,164 $ 425,343 $ Gains/loss on sale of capital assets: Machinery Land Other 2,700 $ 2,700 Net Farm Income $ 428,043 Balance Sheet For Year Ending, December 31, 2020 $ $ 15,246 950 $ Assets Current Assets Cash and checking account Marketable securities Inventories: Crops Livestock Supplies Accounts Receivable Prepaid Expenses Investment in growing crops Other current assets 45,850 42,800 3,000 1,900 $ $ $ $ 2,500 5,500 Total Current Assets $ 117,746 Non-Current Assets Machinery and equipment Breeding livestock - purchased Breeding livestock - raised Buildings and improvements Land Other non-current assets $ $ $ $ $ 324,157 45,000 203,500 50,421 450,000 Total non-current assets Total Assets $ S 1,073,078 1,190,824 $ Liabilities Current Liabilities Accounts payable Notes payable with 1 year Current portion of term debt Accrued interest Income taxes payable Current portion - deferred taxes Other accrued expenses $ $ $ $ $ 4,000 15,000 36,299 35,000 16,005 12,020 2,600 Total Current Liabilities $ 120,924 $ $ 25,000 37,000 410,000 $ Non-Current Liabilities Notes payable Machinery Breeding Livestock Real Estate Debt Non-current portion - deferred taxes Total Non-Current Liabilities Total Liabilities Owner's Equity Contributed Capital Retained Earnings $ $ 472,000 592,924 $ $ 125,000 472,900 597,900 $ Total Equity Total Liabilities and Owner's Equity S 1,190,824 . - . . = = . 1. (25 points) Using the information from the balance sheet and income statement provided, calculate the ratios or measures listed below. Assume the value of unpaid labor (withdrawals for family living expenses) is valued at $37,500. Current Assets Current Ratio Current Liabilities Working Capital = Current Assets Current Liabilities Current Assets-Inventory Quick Ratio Current Liabilities Total Liabilities Debt to Asset Ratio Total Assets Total Equity Equity to Asset Ratio Total Assets Total Assets Asset to Equity = Total Equity Capital Structure compare current and noncurrent assets vs. current and noncurrent liabilities NFIO + Interest Expense - Value of Unpaid Labor Rate of Return on Farm Assets Total Assets NFIO Value of Unpaid Labor Rate of Return on Farm Equity Total Equity Interest Expense Average Interest Expense Total Liabilities NFIO + Interest Expense - Value of Unpaid Labor Operating Profit Margin : Total Revenue Total Revenue Asset Turnover Ratio Total Assets NFIO Net Farm Income from Operations Ratio Total Revenue Total Farm Expenses-Depreciation Expense-Interest Expense Operating Expense Ratio Total Revenue Total Farm Expenses Total Expense Ratio Total Revenue = . . = S $ 530,815 197,045 Income Statement For Year Ending, December 31, 2020 Revenue Cash crop sales Cash livestock sales Inventory Changes Crops Market livestock Livestock production sales Government program payments Change in value of raised breeding stock Gain/loss from sale of culled breeding stock Change in accounts receivable Other farm income (5,000) 2,400 $ S $ S S $ $ 47,447 400 2,400 Total Revenue $ 775,507 $ S 25,000 35,000 Expenses Purchased feed and grain Purchased market livestock Other cash operating expenses: Crop Expenses Livestock Expenses Fuel/oil Labor Repairs and Maintenance Property Taxes Insurance Utilities $ S $ S $ $ $ S 72,358 12,760 29,179 55,907 4,800 4,540 7,470 13,150 $ S $ 3,000 4,500 $ 55,000 Adjustments: Accounts Payable Prepaid Expenses Accrued Expenses Depreciation Total Operating Expenses Cash interest paid Change in Interest Payable Total Interest Expense Total Farm Expenses Net Farm Income from Operations 322,664 S $ 28,000 (500) S S 27,500 350,164 $ 425,343 $ Gains/loss on sale of capital assets: Machinery Land Other 2,700 $ 2,700 Net Farm Income $ 428,043 Balance Sheet For Year Ending, December 31, 2020 $ $ 15,246 950 $ Assets Current Assets Cash and checking account Marketable securities Inventories: Crops Livestock Supplies Accounts Receivable Prepaid Expenses Investment in growing crops Other current assets 45,850 42,800 3,000 1,900 $ $ $ $ 2,500 5,500 Total Current Assets $ 117,746 Non-Current Assets Machinery and equipment Breeding livestock - purchased Breeding livestock - raised Buildings and improvements Land Other non-current assets $ $ $ $ $ 324,157 45,000 203,500 50,421 450,000 Total non-current assets Total Assets $ S 1,073,078 1,190,824 $ Liabilities Current Liabilities Accounts payable Notes payable with 1 year Current portion of term debt Accrued interest Income taxes payable Current portion - deferred taxes Other accrued expenses $ $ $ $ $ 4,000 15,000 36,299 35,000 16,005 12,020 2,600 Total Current Liabilities $ 120,924 $ $ 25,000 37,000 410,000 $ Non-Current Liabilities Notes payable Machinery Breeding Livestock Real Estate Debt Non-current portion - deferred taxes Total Non-Current Liabilities Total Liabilities Owner's Equity Contributed Capital Retained Earnings $ $ 472,000 592,924 $ $ 125,000 472,900 597,900 $ Total Equity Total Liabilities and Owner's Equity S 1,190,824