1. Income from Operations? 2. Net Farm Income! 3. Compute Return to Assets 4. Compute Retum to Equity: 5 Compute Rate of Return on Assets: () 6. Compute Rate of Return on Equity: CO 3. How much did I. M. Farmer's equity increase or decrease during 20202 8 Value of Farm Production? 9. Operating Profit Margin Ratio? 10. Compute the Asset Tumover Ratio (Which is Value of Farm Production divided by Total Assets) 1,40.000 91,600 7,410 12.900 Revenue: Cash crop sales Cash livestock sales Inventory changes: Crops Market livestock Livestock product sales Government program payments Gain/loss from sale of culled breeding stock Change in accounts receivable Other farm income Total revenue Expenses: Purchased feed and grain Purchased feeder livestock Other cash operating expenses: Fertilizer expense Chemical expense Seed purchased Livestock expenses Fuel, oil Labor Repairs, maintenance Property taxes Insurance Supplies Misc. expenses Land Rental Expense Adjustments Accounts payable Depreciation Total operating expenses Income from operations 48.890 22100 0 14,700 2623,280 432,000 445,000 310,000 100,000 194,100 50.800 $2.000 42600 87,100 32,500 40.800 54,100 45,800 238,000 M009 ise poo 2,322,500 280,700 120.000 -4500 15.500 Cash interest paid Change in interest payable Total interest expense Gain/oss on sale of capital assets Machinery Land Total Gain/loss Net farm income 21,100 e 21,100 18.380 Assume I.M. Farmer has an accounting period running from January 1 to December 31. Use the following information obtained for the calendar year 2020 accounting period to complete an income statement for I.M. using the attached form. Then complete the calculations on the last two pages. Inventory Values Crops Livestock Jan. 1, 2020 $132,850 $118,600 Dec. 31, 2020 $125,440 $131,500 Revenue and Expenses Depreciation 150,000 Crops Sold $1,610,000 Feed Purchased 432,000 Insurance 40,800 Property Taxes 32,500 Interest Paid 120,000 Misc. Expenses 45,800 Feeder Livestock Purch. 465,000 Market Livestock Sold 916,600 Seed Purchased 194,100 Repairs 82,100 Vet. & Health Expense 58,800 Fertilizer Exp. 310,000 Income from Custom Work 14,700 Supplies 54,800 Gain on Sale of Labor Hired 42,600 Breeding Stock 27,600 Fuel Expense 82,000 Gov't payment income 48,890 Gain on mach. sale 21,100 Chemical exp. 100,000 Change in interest payable (4,500) Change in acct. payable +14,000 Land Rent Expense 238,000 Other Information Average Asset Value (2020) $3,000,000 Family Living Expenses $78,000 Opportunity Cost of Operator Income Tax Paid in 2020 32,500 Labor 50,000 Owner's Equity (1/1/20) $2,200,000 Opportunity Cost of Operator Average Equity Value Management 45,000 (2020) $2,237,940 Opportunity Cost of Capital 5% 1. Income from Operations? 2. Net Farm Income! 3. Compute Return to Assets 4. Compute Retum to Equity: 5 Compute Rate of Return on Assets: () 6. Compute Rate of Return on Equity: CO 3. How much did I. M. Farmer's equity increase or decrease during 20202 8 Value of Farm Production? 9. Operating Profit Margin Ratio? 10. Compute the Asset Tumover Ratio (Which is Value of Farm Production divided by Total Assets) 1,40.000 91,600 7,410 12.900 Revenue: Cash crop sales Cash livestock sales Inventory changes: Crops Market livestock Livestock product sales Government program payments Gain/loss from sale of culled breeding stock Change in accounts receivable Other farm income Total revenue Expenses: Purchased feed and grain Purchased feeder livestock Other cash operating expenses: Fertilizer expense Chemical expense Seed purchased Livestock expenses Fuel, oil Labor Repairs, maintenance Property taxes Insurance Supplies Misc. expenses Land Rental Expense Adjustments Accounts payable Depreciation Total operating expenses Income from operations 48.890 22100 0 14,700 2623,280 432,000 445,000 310,000 100,000 194,100 50.800 $2.000 42600 87,100 32,500 40.800 54,100 45,800 238,000 M009 ise poo 2,322,500 280,700 120.000 -4500 15.500 Cash interest paid Change in interest payable Total interest expense Gain/oss on sale of capital assets Machinery Land Total Gain/loss Net farm income 21,100 e 21,100 18.380 Assume I.M. Farmer has an accounting period running from January 1 to December 31. Use the following information obtained for the calendar year 2020 accounting period to complete an income statement for I.M. using the attached form. Then complete the calculations on the last two pages. Inventory Values Crops Livestock Jan. 1, 2020 $132,850 $118,600 Dec. 31, 2020 $125,440 $131,500 Revenue and Expenses Depreciation 150,000 Crops Sold $1,610,000 Feed Purchased 432,000 Insurance 40,800 Property Taxes 32,500 Interest Paid 120,000 Misc. Expenses 45,800 Feeder Livestock Purch. 465,000 Market Livestock Sold 916,600 Seed Purchased 194,100 Repairs 82,100 Vet. & Health Expense 58,800 Fertilizer Exp. 310,000 Income from Custom Work 14,700 Supplies 54,800 Gain on Sale of Labor Hired 42,600 Breeding Stock 27,600 Fuel Expense 82,000 Gov't payment income 48,890 Gain on mach. sale 21,100 Chemical exp. 100,000 Change in interest payable (4,500) Change in acct. payable +14,000 Land Rent Expense 238,000 Other Information Average Asset Value (2020) $3,000,000 Family Living Expenses $78,000 Opportunity Cost of Operator Income Tax Paid in 2020 32,500 Labor 50,000 Owner's Equity (1/1/20) $2,200,000 Opportunity Cost of Operator Average Equity Value Management 45,000 (2020) $2,237,940 Opportunity Cost of Capital 5%