8. (19 points) Use the following information to compute values for each of the profitability measures listed below. Evaluate each of the measures: weak, fair, strong (or if $ value how you would rate it). U.R. Rancher Income Statement December 31, 2021 Revenue: Cash crop sales $112,000 Case livestock sales $141,000 Inventory changes: Crops -$400 Market livestock $12,000 Misc. supplies $1,800 Livestock product sales $0 Government program payments $0 Gains/Loss from sale of culled breeding stock $2,400 Custom work $3,400 Other farm incomes $3,000 Gross revenue $275,200 Expenses: Purchased feed and grain $11,600 Purchased market livestock $45,000 Other cash operating expenses: Fertilizer and chemical expenses $10,800 Seed purchased $3,800 Vet and health expenses $2,200 Fuel, oil $5,600 Labor $24,800 Repairs, maintenance $5,600 Property taxes $4,200 $2,600 $2,800 $15,000 $134,000 ????????? $41,800 Insurance Misc. expenses Depreciation Total operating expenses Net farm income from operations Other Revenues and Expenses: Cash interest paid Change in interest payable Total interest expense Gain/loss on the sale of capital assets Machinery Land Total gain/loss on sale of capital assets Net farm income $0 $41,800 $5,200 $0 $5,200 ????????? Other Key Information Needed Beginning net worth (from balance sheet) Ending net worth (from balance sheet) Total beginning assets (from balance sheet) Total ending assets (from balance sheet) Value of unpaid management (estimate) Value of unpaid labor (estimate) $640,000 $700,000 $1,020,000 $1,060,000 $8,000 $24,000 Value (2 points each) Evaluate (W, F, S, positive it better, etc.) (1/2 point each) a) Net Farm Income Operations b) Net Farm Income c) Net Farm Income Ratio d) Rate of Return on Assets e) Rate of Return on Equity f) Operating Profit Margin Ratio g) Asset Turnover Rate h) Verify the earns times turns relationship (1.5 points)