Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#6. The information for Fanny Farm's balance sheets and income statements for 2009 and 2010 is shown in the following tables Balance Sheet Total Farm

image text in transcribed
#6. The information for Fanny Farm's balance sheets and income statements for 2009 and 2010 is shown in the following tables Balance Sheet Total Farm Assets Total Farm Liabilities Total Net Worth 2009 2010 S497,000 $475,200 $194,825 S182,132 $302.175 $293.068 Income Statement Value of farm production Nondepreciation operating expenses Depreciation expense Interest expense Net farm income from operations 2009 2010 $139,160 $160,034 76,538 79,321 15,000 16,000 14,571 14,570 $ 33,051 $ 50.143 Other Information Family living withdrawals Nonfarm income Income tax expense Other income from farm assets Principal payments on term debt and capital leases Interest payments on term debt and capital leases 2009 2010 $ 25,000 S 25,700 0 0 $ 9,091 S 6,700 0 0 $ 12,000 $ 14,000 S 13.500 S 12,240 A. Compute the operating profit margin (OPM) ratio for 2010. You need to show your work. Round the answer to 4 decimals. (5 points) B. Compute the cost of farm average debt (COFD) for 2010. You need to show your work. Round the answer to 4 decimals. (3 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information For Decisions

Authors: Robert Ingram, Thomas L. Albright, Bruce A. Baldwin, John Hill

1st Edition

0538815388, 978-0538815383

More Books

Students also viewed these Accounting questions

Question

1. Assign study buddies who can be available over the phone.

Answered: 1 week ago