al BIU A - A. ABE 351: Financial Management in Agriculture (Fall 2020) (Assignment 04: Due Oct 08th) Points = 60 Name In this homework assignment, you'll conduct financial analysis for a fruit farm. You have to: i) ii) iii) Copy the table below and paste it on an Excel worksheet. Use figures given in the Table below to calculate financial measures. [Points = 25] Using formulas in Excel, calculate all financial measures you learned under Liquidity, Solvency and Profitability. a. Liquidity: Current ratio, Working capital (WC), and WC to Gross revenue b. Solvency: Debt to Asset (D/A) ratio, E/A ratio, and D/E ratio c. Profitability: NFI, NFIO, Rate of Return on Assets, Rate of Return on Equity, and Operating Profit Margin. 731,140[Pts = 20] Describe what each financial measure says about the farm. Please avoid generic description. For example, "the farmer is doing a good job of maintaining the current ratio" is not an acceptable description of current ratio. One line description is fine as long as it is a complete thought (or statement, sentence). [Pts = 10] Write a summary of your evaluation of this farm. [Pts = 5] What could be possible reasons for the farm to not have enough cash? Suggest at iv) V) vi) Tools Help Normal BI U JE - A. A v) [Pts = 10) Write a summary of your evaluation of this farm. vi) [Pts = 5] What could be possible reasons for the farm to not have enough cash? Suggest at least two reasons. It could be using the info below or just hypothetical but relevant. Upload only the Excel file. Describe/comment within the Excel sheet itself. vii) The following items are taken from farm financial statements reported at the end of the fiscal year, Dec 31, 2018 items from financial statements Statement $ Fruit & other crops in inventory B/S 320,500 Misc. Farm inventory B/S S 6,000 Current assets (total) B/S 515,600 Current liabilities (total) B/S 305,200 Gross revenues Income 840,100 Farm interest paid Income 30,500 Total Expenses (COGS, SG&A, Interest Expense) Income 731,140 Owner withdrawals Owner's Equity 100,000 Net worth or Equity (Dec 31, 2018) B/S 1,100.100 Total liabilities (Dec 31, 2018) B/S 550,400 an Help BIUA. A. Normal ABE 351: Financial Management in Agriculture (Fall 2020) (Assignment 04: Due Oct 08h) Points = 60 Name Net worth or Equity (Dec 31, 2017) B/S 900,500 Total liabilities (Dec 31, 2017) B/S 602,000 Note: Items on the B/S are 'as of' or 'on' Dec 31. Items on the Income Statement are for the entire fiscal year. Unit Value Benchmark for this enterprise Benchmark Current ratio 2.00 $ 250,000 1% 35 Working capital Debt-to-Asset ratio Net Farm Income (bottom line) $ 120,000 1% Return on Assets Return on Equity al BIU A - A. ABE 351: Financial Management in Agriculture (Fall 2020) (Assignment 04: Due Oct 08th) Points = 60 Name In this homework assignment, you'll conduct financial analysis for a fruit farm. You have to: i) ii) iii) Copy the table below and paste it on an Excel worksheet. Use figures given in the Table below to calculate financial measures. [Points = 25] Using formulas in Excel, calculate all financial measures you learned under Liquidity, Solvency and Profitability. a. Liquidity: Current ratio, Working capital (WC), and WC to Gross revenue b. Solvency: Debt to Asset (D/A) ratio, E/A ratio, and D/E ratio c. Profitability: NFI, NFIO, Rate of Return on Assets, Rate of Return on Equity, and Operating Profit Margin. 731,140[Pts = 20] Describe what each financial measure says about the farm. Please avoid generic description. For example, "the farmer is doing a good job of maintaining the current ratio" is not an acceptable description of current ratio. One line description is fine as long as it is a complete thought (or statement, sentence). [Pts = 10] Write a summary of your evaluation of this farm. [Pts = 5] What could be possible reasons for the farm to not have enough cash? Suggest at iv) V) vi) Tools Help Normal BI U JE - A. A v) [Pts = 10) Write a summary of your evaluation of this farm. vi) [Pts = 5] What could be possible reasons for the farm to not have enough cash? Suggest at least two reasons. It could be using the info below or just hypothetical but relevant. Upload only the Excel file. Describe/comment within the Excel sheet itself. vii) The following items are taken from farm financial statements reported at the end of the fiscal year, Dec 31, 2018 items from financial statements Statement $ Fruit & other crops in inventory B/S 320,500 Misc. Farm inventory B/S S 6,000 Current assets (total) B/S 515,600 Current liabilities (total) B/S 305,200 Gross revenues Income 840,100 Farm interest paid Income 30,500 Total Expenses (COGS, SG&A, Interest Expense) Income 731,140 Owner withdrawals Owner's Equity 100,000 Net worth or Equity (Dec 31, 2018) B/S 1,100.100 Total liabilities (Dec 31, 2018) B/S 550,400 an Help BIUA. A. Normal ABE 351: Financial Management in Agriculture (Fall 2020) (Assignment 04: Due Oct 08h) Points = 60 Name Net worth or Equity (Dec 31, 2017) B/S 900,500 Total liabilities (Dec 31, 2017) B/S 602,000 Note: Items on the B/S are 'as of' or 'on' Dec 31. Items on the Income Statement are for the entire fiscal year. Unit Value Benchmark for this enterprise Benchmark Current ratio 2.00 $ 250,000 1% 35 Working capital Debt-to-Asset ratio Net Farm Income (bottom line) $ 120,000 1% Return on Assets Return on Equity