1. Fill in the grey colored cells with the correct figures. Beginning and Ending Balance Sheets (Plus Change) ANNUAL INCOME STATEMENT (Jan. 1-Dec. 31) ANNUAL AVERAGE JAN. 1 DEC. 31 AMOUNT Operating Receipts Grain Sales Total $127,500 $127,500 ASSETS CURRENT Cash Grain Inventory Total Current NON-CURRENT Machinery Real Estate Total Non-current Total Assets $10,000 $100,000 $110,000 $4,000 $86,000 $90,000 $100,000 Operating Expenses Labor Expense Interest Expense Total $12,000 $3,000 $15,000 $50,000 $250,000 $300,000 $410,000 $40,000 $340,000 $380,000 $470,000 $440,000 Non-Cash Adjustments Beginning Closing NET CHANGE Grain Inventory $100,000 $86,500 -$13,500 $8,000 $20,000 $28,000 $6,000 $0 $6,000 $12,000 Taxes NFI (AFTER-TAX) $17,000 LIABILITIES CURRENT Accounts Payable Operating Loan Total Current NON-CURRENT Machinery Loan Real Estate Mortgage Total Non-current Total Liabilities $20,000 $14,000 $160,000 $156,000 $180,000 $170,000 $208,000 $176,000 Withdrawals Injections CHANGE in NW $20,000 $25,000 $192,000 Net Worth TOTAL ASSETS=LIABILITIES+NET WORTH $410,000 $470,000 $440,000 SUMMARY OF FINANCIAL MEASURES Performance Measures Jan. 1 Dec. 31 Annual Ave. Profitability Net farm income from operations (NFI) Return on assets (ROA) Return on equity (ROE) Cost of Debt (COD) Liquidity Current ratio Working capital Solvency Debt to asset Leverage ratio Percent owner equity Solvency margin (NW) 2. Using the appropriate data below, calculate: Current assets = $32,500 Current liabilities = $21,550 Debt payments = $25,300 Depreciation expense = $20,000 Gross revenues = $146,000 Income tax expense = $4,000 Interest = $12,300 Net farm income from operations = $8,700 Owner withdrawals = $500 Total assets: end of the year = $100,000; beginning of the year = $80,000 Total equity: end of the year = $35,000; beginning of the year = $35,000 Total liabilities: end of the year = $65,000; beginning of the year = $45,000 a. The current ratio and the working capital. b. The debt to assets ratio (D/A), equity to assets ratio (E/A), and debt to equity ratio (D/E, also known as leverage) using beginning of the year values. c. The rate of return on farm assets (ROFA), the rate of return on farm equity (ROFE), and the cost of farm debt (COFD) using annual averages