ABE $351$: Financial Management in Agriculture $($Fall $2024)$

$($HW $02$: Points $=100)$

Name$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Date$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Jane owns and manages a poultry farm. She conducted the following transactions.

Assume it was received or paid in cash unless specified otherwise.

$1.$ She purchased farm equipment costing $$120,000$ by making a down payment of $$20,000$ and

taking a long$-$term loan for the remainder.

$2.$ Purchased drugs and supplements from suppliers on account costing $$15,600.$

$3.$ Paid off the farm suppliers for the purchase made earlier $($transaction $2.$ above$).$

$4.$ Purchased feed for $$5,000.$

$5.$ Sold eggs worth $$10,500$ to its usual retailers and received $$5,500$ in cash. The remaining

amount will be paid to her at the end of the month.

$6.$ During off$-$peak season, she provides crew worker services to other local farms who are short

of workers. For harvesting assistance at a peach orchard, she received $$5,000.$ They were

paid $$3,000$ with the remaining to be received after a month.

$7.$ Sold broiler chickens for $$60,000$ that cost her $$30,000.$ The retailer paid half in cash with

the promise to pay the remaining amount at the end of the next month, Sept.

$8.$ Paid wages to farm employees: $$15,500.$

$9.$ Withdrew $$5,000$ for qualified living expenses $($owner withdrawals.$).$

$10.$ Received and paid utility bill of $$1,700.$