A 60-string farm in Lares produces bananas and bananas. Additionally, due to its elevation and location near a lake, the land and the farm have amenities (view of the lake, vegetation and trails) that make it ideal for business for ecotourism purposes. Close friends of the farm administrator have advised him to enter the ecotourism business as a hotel or inn and leave agricultural production, given the potential climatic risks (droughts, storms and hurricanes). His friends from the guild have generally done better in the ecotourism business than in agriculture. However, changing the farm's business line would require new investments in structure, facilities, sustainable technologies, and tourist activities (such as hiking and mountaineering). Despite the natural phenomena, the production of bananas and bananas has been satisfactory and the financial situation of the farm has been, on average, healthy during the last decade. However, the administrator (and owner) of the farm does not rule out the possibility and wishes to evaluate the alternative of entering the ecotourism business. The administrator knows that he must do internal and external scanning and hires you as a consultant to advise him in this decision-making process.

#1. The administrator asks you to make a statement of financial situation (Balance Sheet) to measure the performance of the farm in the last year. After collecting the necessary information, the administrator gives you the following items of the assets, liabilities and equity accounts in no specific order: 1. Common shares: $ 160,000 2. Cash: $ 426; 3. Accounts Payable: $ 26,440; 4. Equipment, tractors and infrastructure: $ 430,000; 5. Accumulated depreciation: $ 19,000; 6. 20-year notes payable: $ 380,000; 7. Inventory: $ 62,800; 8. Retained earnings: $ 69,542; 9. Net accounts receivable: $ 98,406; 10. Interest payable: $ 6,650; 11. Land: $ 70,000. It has no intangible assets ($ 0).