1. Define farm profit. (2 points) 2. What is the difference between Net Farm Income (NFI) and Net Farm Income from Operations (NFIO)? Why is this distinction important? (2 points) 3. Define the Rate of Return on Assets (ROA) equation. Explain why ROA is important. (2 points) 4. Explain the following concerning farm inventories: a. Why is net inventory change included on an income statement? (2 points) b. What effect does an increase in inventory value have on net farm income? (1 point) c. What effect does a decrease in inventory value have on net farm income? (1 point) 5. Define Statement of Cash Flows. Explain how a business can be profitable, but have negative cash flows. (4 points)