3. Use the following information (along with the balance sheet information from assignment 4) to fill in the blank OSU income statement excel template (also on the website) and calculate Net Farm Income Supplementary Information for Income Statement exercise You will need the beginning and ending balance sheet from Homework 4 (or the "change" column). Cash crop sales for year $368,265.00, Cash livestock sales for year (all purchased, none raised) $463,250.00, Ag Program payments for year $22,750.00, Custom Work Income for Year $2,400.00, Expenses, livestock Purchases for year $425,200.00, Feed Purchases for year $17,400.00, Labor $13,250.00, Repairs $14,375.00, seed $28,765.00, Fertilizer $47,253.00, Machine Hire $28,375.00, Vet $2,475.00, Marketing $5,875.00, Fuel $26,200.00, Utilities $5,750.00, Property Tax (Ad Valorem) 3,325.00, Insurance $3,325.00, Cash Rent $24,350.00, Herbicide and Insecticide $27,650.00, Miscellaneous $9,825.00 Be sure to account for the following accrual adjustments: Change in Market livestock inventory (and be able to explain why the sign on this entry is what it is) Change in stored crops inventory (and be able to explain why the sign on this entry is what it is) Change in accounts receivable (and be able to explain why the sign on this entry is what it is) Change in supplies (and be able to explain why the sign on this entry is what it is) Change in accounts payable (and be able to explain why the sign on this entry is what it is) Change in accrued interest (and be able to explain why the sign on this entry is what it it) Management Depreciation for the accounting period is $66,350.00 The farm paid $64,178.00 in farm interest during the year. The farm sold a tractor and some equipment for $8,250.00 more than the management book value at the time of sale. Ignore the "non-farm" section of the income statement Fill in the Blank Example Income Statement and calculate net farm income Assume the farm needs to draw $20,000 from this farm in unpaid family labor. Calculate Return on Assets (based on average assets for the year) for this farm using the FFSG guidelines. Would you consider your calculated measure satisfactory? OSU Balance Sheet home Formulas Data Review View Help Search AutoSave @ ON A 2 . File Home Insert Page Layout X Cut Calibri Paste - Format Painter BTU. Clipboard . LL 11 . Copy AA EEE .A. E General $ - % Wrap Text Merge & Center . *38-40 Alignment Number F11 Balance 122.250 7.000 DE Ending Balance Net Change 110,250 -12,000 12.000 5,000 0 120,0000 120.000 120.000 573,750 69,000 528.750 68,000 7 Current Assets 8 1) Cash & Checking 9 2) Accounts Receivable 10 3) Prepaid Expenses 11 4) Cash Investment Growing Crops 12 Inventories 13 5) Marketable Livestock 14 6) Stored Crops and Feed 157) Purchased Feed 16 8) Supplies 17 9) Other Current Assets 18 10) TOTAL CURRENT FARM ASSETS 19 Non-Farm Assets 20 11) Savings 21 12) Marketable Securities 22 13) Other Non-Farm Assets -45,000 - 1,000 0 500 1.500 2.000 893,500 841,000 -52,500 24 14) Total Current Assets 893,500 8 41,000 52,500 685,375 637,375 -48,000 26 Non-Current Assets 27 15) Breeding Livestock +8 16) Vehicles *9 17) Machinery, Equipment 0 18) Investment in Capital Leases -1 19) Contracts & Notes Receivable 2 20) Investment in Cooperatives 3 21) Real Estate, Land 4 22) Buildings & Improvements Balance Sheet Sheet1 -75,000 1,275,000 125,000 1,200,000 125,000 Type here to search ALIEN OSU Balance Sheet home Data Review View Help Search AutoSave @ 2 File Home Insert Page Layout Formulas Calibri 11 A A In Copy Paste BTU - .A - Format Painter Clipboard General hat . 3=E E Wrap Text Merge & Center. $. % * * Alignment -75,000 1,275,000 125,000 1,200,000 125,000 2,085,375 1 ,962,375 - 123,000 33 21) Real Estate, Land 34 22) Buildings & Improvements 3523) Other Non-Current Assets 36 24) TOTAL NON CURRENT FARM ASSETS 37 Non-Farm Assets 38 25) Cash Value, Life Insurance 39 26) Investment in Other Entities 40 27) Other Non-Farm Assets 41 28) TOTAL NON-CURRENT ASSETS 2,085,375 1,962,375 -123,000 43 29) TOTAL ASSETS 2,978,875 2.803,375 175,500 1 3.500 23.000 3 .000 596,200 73,434 22,000 6,500 573,200 7 4,220 21,000 46 Current Liabilities 47 30) Accounts Payable 48 31) Line of Credit and Operating Notes 49 32) Current Portion of Term Debt 50 33) Accrued Interest 51 Taxes Payable 52 34) Ad Valorem 53 35) Employee Payroll Withholding 54 36) Income Taxes 55 37) Deferred Taxes 56 38) Other Accrued Expenses 57 39) Other Current Liabilities 58 40) TOTAL CURRENT FARM LIABILITIES 59 Non-farm Liabilities 60 41) Non-Farm Notes & Interest 61 42) Other Non-Farm Liabilities Balance Sheet Sheet1 19,714 Type here to search ALIEN OSU Balance Sheet homew AutoSave om Mile Home 9 x Cut " Insert View Page Layout libri TU. General Help Search Wrap Text Merge & Center Formulas Data Review 11 A A == . D.A. E $ . % 9 8 -28 e Copy B Format Painter Alignment 694,634 674,920 -19,714 57 39) Other Current Liabilities 5840) TOTAL CURRENT FARM LIABILITIES 59 Non-farm Liabilities 60 41) Non-Farm Notes & Interest 61 42) Other Non-Farm Liabilities 62 43) TOTAL CURRENT LIABILITIES 694.634 674,9201 19,714 329,166 284,900 282,621 277,225 46,545 7,675 64 Non Current Liabilities 65 44) Notes Payable, non-Real Estate 66 45) Notes Payable Real Estate 67 46) Deferred Taxes 68 47) Other Non-Current Liabilities 69 48) TOTAL NON-CURRENT FARM LIABILITIES 70 Non-Farm Liabilities 71 49) Non Farm Notes 72 50) Other Non-Farm Liabilities 7351) TOTAL NON-CURRENT LIABILITIES 614,066 559,846 5 4,220 614,066 559.946 -54,220 75 52) Total Liabilities 1,308,700 1,234,766 7 3,934 77 Owner Equity 78 53) Contributed Capital 79 54) Retained Earnings 8055) Total Valuation Equity 82 56) TOTAL EQUITY 83 84 57) TOTAL LIABILITIES & EQUITY 1,670,175 2,978,875 1,568,609 2,803,375 -101,566 -175,500 Balance Sheet Sheet1 Type here to search ALIE 3. Use the following information (along with the balance sheet information from assignment 4) to fill in the blank OSU income statement excel template (also on the website) and calculate Net Farm Income Supplementary Information for Income Statement exercise You will need the beginning and ending balance sheet from Homework 4 (or the "change" column). Cash crop sales for year $368,265.00, Cash livestock sales for year (all purchased, none raised) $463,250.00, Ag Program payments for year $22,750.00, Custom Work Income for Year $2,400.00, Expenses, livestock Purchases for year $425,200.00, Feed Purchases for year $17,400.00, Labor $13,250.00, Repairs $14,375.00, seed $28,765.00, Fertilizer $47,253.00, Machine Hire $28,375.00, Vet $2,475.00, Marketing $5,875.00, Fuel $26,200.00, Utilities $5,750.00, Property Tax (Ad Valorem) 3,325.00, Insurance $3,325.00, Cash Rent $24,350.00, Herbicide and Insecticide $27,650.00, Miscellaneous $9,825.00 Be sure to account for the following accrual adjustments: Change in Market livestock inventory (and be able to explain why the sign on this entry is what it is) Change in stored crops inventory (and be able to explain why the sign on this entry is what it is) Change in accounts receivable (and be able to explain why the sign on this entry is what it is) Change in supplies (and be able to explain why the sign on this entry is what it is) Change in accounts payable (and be able to explain why the sign on this entry is what it is) Change in accrued interest (and be able to explain why the sign on this entry is what it it) Management Depreciation for the accounting period is $66,350.00 The farm paid $64,178.00 in farm interest during the year. The farm sold a tractor and some equipment for $8,250.00 more than the management book value at the time of sale. Ignore the "non-farm" section of the income statement Fill in the Blank Example Income Statement and calculate net farm income Assume the farm needs to draw $20,000 from this farm in unpaid family labor. Calculate Return on Assets (based on average assets for the year) for this farm using the FFSG guidelines. Would you consider your calculated measure satisfactory? OSU Balance Sheet home Formulas Data Review View Help Search AutoSave @ ON A 2 . File Home Insert Page Layout X Cut Calibri Paste - Format Painter BTU. Clipboard . LL 11 . Copy AA EEE .A. E General $ - % Wrap Text Merge & Center . *38-40 Alignment Number F11 Balance 122.250 7.000 DE Ending Balance Net Change 110,250 -12,000 12.000 5,000 0 120,0000 120.000 120.000 573,750 69,000 528.750 68,000 7 Current Assets 8 1) Cash & Checking 9 2) Accounts Receivable 10 3) Prepaid Expenses 11 4) Cash Investment Growing Crops 12 Inventories 13 5) Marketable Livestock 14 6) Stored Crops and Feed 157) Purchased Feed 16 8) Supplies 17 9) Other Current Assets 18 10) TOTAL CURRENT FARM ASSETS 19 Non-Farm Assets 20 11) Savings 21 12) Marketable Securities 22 13) Other Non-Farm Assets -45,000 - 1,000 0 500 1.500 2.000 893,500 841,000 -52,500 24 14) Total Current Assets 893,500 8 41,000 52,500 685,375 637,375 -48,000 26 Non-Current Assets 27 15) Breeding Livestock +8 16) Vehicles *9 17) Machinery, Equipment 0 18) Investment in Capital Leases -1 19) Contracts & Notes Receivable 2 20) Investment in Cooperatives 3 21) Real Estate, Land 4 22) Buildings & Improvements Balance Sheet Sheet1 -75,000 1,275,000 125,000 1,200,000 125,000 Type here to search ALIEN OSU Balance Sheet home Data Review View Help Search AutoSave @ 2 File Home Insert Page Layout Formulas Calibri 11 A A In Copy Paste BTU - .A - Format Painter Clipboard General hat . 3=E E Wrap Text Merge & Center. $. % * * Alignment -75,000 1,275,000 125,000 1,200,000 125,000 2,085,375 1 ,962,375 - 123,000 33 21) Real Estate, Land 34 22) Buildings & Improvements 3523) Other Non-Current Assets 36 24) TOTAL NON CURRENT FARM ASSETS 37 Non-Farm Assets 38 25) Cash Value, Life Insurance 39 26) Investment in Other Entities 40 27) Other Non-Farm Assets 41 28) TOTAL NON-CURRENT ASSETS 2,085,375 1,962,375 -123,000 43 29) TOTAL ASSETS 2,978,875 2.803,375 175,500 1 3.500 23.000 3 .000 596,200 73,434 22,000 6,500 573,200 7 4,220 21,000 46 Current Liabilities 47 30) Accounts Payable 48 31) Line of Credit and Operating Notes 49 32) Current Portion of Term Debt 50 33) Accrued Interest 51 Taxes Payable 52 34) Ad Valorem 53 35) Employee Payroll Withholding 54 36) Income Taxes 55 37) Deferred Taxes 56 38) Other Accrued Expenses 57 39) Other Current Liabilities 58 40) TOTAL CURRENT FARM LIABILITIES 59 Non-farm Liabilities 60 41) Non-Farm Notes & Interest 61 42) Other Non-Farm Liabilities Balance Sheet Sheet1 19,714 Type here to search ALIEN OSU Balance Sheet homew AutoSave om Mile Home 9 x Cut " Insert View Page Layout libri TU. General Help Search Wrap Text Merge & Center Formulas Data Review 11 A A == . D.A. E $ . % 9 8 -28 e Copy B Format Painter Alignment 694,634 674,920 -19,714 57 39) Other Current Liabilities 5840) TOTAL CURRENT FARM LIABILITIES 59 Non-farm Liabilities 60 41) Non-Farm Notes & Interest 61 42) Other Non-Farm Liabilities 62 43) TOTAL CURRENT LIABILITIES 694.634 674,9201 19,714 329,166 284,900 282,621 277,225 46,545 7,675 64 Non Current Liabilities 65 44) Notes Payable, non-Real Estate 66 45) Notes Payable Real Estate 67 46) Deferred Taxes 68 47) Other Non-Current Liabilities 69 48) TOTAL NON-CURRENT FARM LIABILITIES 70 Non-Farm Liabilities 71 49) Non Farm Notes 72 50) Other Non-Farm Liabilities 7351) TOTAL NON-CURRENT LIABILITIES 614,066 559,846 5 4,220 614,066 559.946 -54,220 75 52) Total Liabilities 1,308,700 1,234,766 7 3,934 77 Owner Equity 78 53) Contributed Capital 79 54) Retained Earnings 8055) Total Valuation Equity 82 56) TOTAL EQUITY 83 84 57) TOTAL LIABILITIES & EQUITY 1,670,175 2,978,875 1,568,609 2,803,375 -101,566 -175,500 Balance Sheet Sheet1 Type here to search ALIE