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A farm business manager has just finished preparing end of year financial statements for the business. The following financial information was determined: Current assets -
A farm business manager has just finished preparing end of year financial statements for the business. The following financial information was determined: Current assets - beginning of year $200,000 Total assets - beginning of year $600,000 Current liabilities - beginning of year $100,000 Total liabilities - beginning of year $150,000 Total equity - beginning of year $450.000 Current assets - end of year $250,000 Total assets - end of year $800,000 Current liabilities - end of year $150,000 Total liabilities - end of year $300,000 Total equity - end of year $500,000 Gross revenue $600,000 Netfarm income from operations $115,000 Operating expense $425,000 Farm interest expense $20,000 Depreciation expense $45.000 Owner withdrawals (for unpaid labor and Met) $50,000 Non-farm income $35.000 What is the form business leverage ratio end of year? O2.33 Ob O 1.667 O 0.2 QUESTION 13 A farmer just bought a new piece of machinery for $50,000. It is expected to have a useful economic life of five years, with projected salvage value of $5,000. If the farmer chooses to use the double declining balance method, how much depreciation will he claim in year 5? 36.480 0.12.592 O C 55.000 Od 5140
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