1. Refer to Tables 3-1, 3-2, and 3-3 (pages 65 - 67) on your textbook, and use data from the balance sheet, income statement and statement of cash flow to calculate the following for Joseph and Elise Farmer:

1. 2009 rate-of-return on farm assets (6 Points)
2. 2009 rate-of-return on farm equity (6 Points)
3. 2009 cost of farm debt (5 Points)
4. What business characteristic does each of the above measure (6 Points)
5. Explain the meaning of each of your results/answers (9 points) 32 points total

ROFA 2009

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ROFE 2009

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COFD 2009

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d) What business characteristic does each of the above measure

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e)

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2. In your expert opinion, does the 2009 business operate under favorable profitability conditions, given the logical ordering of the profitability measures you calculated? Why? (5 Points)

66 CHAPTER THREE FINANCIAL ANALYSIS AND CONTROL Table A3-2 Income Statement Summary for Joseph and Elise Farmer (Continued) Tahle ZZ Irantin...ad APPENOIK Table A3-1 Balance Sheet Summary for Joseph and Elise Farmer