AREC 342 Assignment # 2 Balance Sheet Construction and Analysis Name: Rachel Rancher has applied for a loan. Her banker, Bob Banker, says the old balance sheet on file must be brought up to date before a loan will be considered. Rachel spends the rest of the afternoon taking inventory and gathering other information. Complete the balance sheet template using the information below compiled by Rachel on February 15, 2023. Com on hand Hay on hand Growing wheat 4200 bushel @ $4.40 per bushel 75 tons @ $50.00 per ton 280 acres @ $22.50 per acre $14,000 principal $20,000 accrued interest Farm mortgage (due 4/01/23) balance after 4/01/23 payment (current market value) (Current book value) $208,000 $48,000 $20,000 $34,000 Buildings & improvements Note payable on feeder cattle (all due 11/15/23) Calves (to be sold in May) Feeder cattle (to be sold in 60 days) Note payable at bank (all due 3/1/23) Machinery & equipment Loan on beef cows (due 10/01/23) Land Beef breeding cows Bulls Checking account balance 98 head @ $275 per head 138 head @ $575 per head $52,000 (current market value) $98,000 (current book value) $49,000 $9,000 principal $3,900 accrued interest balance after 10/1/23 payment $38,000 (current market value) 1020 acres @ $1560 per acre (purchased 5/23/88 for $400 per acre (current market value)106 head @ $650 per head (current book value) $40,000 (current market value) 4 head @ $1,000 each (current book value) $2500 Account payable at Joe's Feed & Seed $10,000 $4,200 $1,600 Account receivable Ford Motor Co. stock 200 shares @ $65 per share (current market) purchased for $25/share Name Current Assets Cash and Checking account Crops held for Sale/Feed Investment in growing crop Commerical Feed on Hand Prepaid Expense Market livestock Supplies on Hand Accounts Recievable Other Current Assets Total Current Assets RACHEL'S RANCH BALANCE SHEET Farm Assets Farm Liabilities Value Current Liabilities Value Accounts Payable Noncurrent Assets Cost Unpaid Coop. distributions Breeding Livestock Machinery and Equipment Building & Improvements Farmland $ Other Securities Other noncurrent assets Total Noncurrent assets $ Total Assets S S Market Income Tax Payable Remaining Principal Balance ( 1 year) Other noncurrent Liabilities Total Noncurrent liabilities Cost Based Total Liabilities Market Based Total Liabilities Deferred Liabilities Net Worth (Total Owner Equity Cost Basis) Net Worth (Total Owner Equity Market Basis) $ $ S $ $