Assume I.M. Farmer has an accounting period running from January 1 to December 31. Use the following information obtained for the past calendar year accounting period to complete an income statement for I.M. Then complete the calculations on the last two pages. Inventory Values Crops Livestock January 1 $32,850 $18,600 December 31 $25,440 $31,500 Revenue and Expenses Depreciation Feed Purchased Property Taxes Misc. Expenses Market Livestock Sold Repairs Fertilizer Exp. Supplies Labor Hired Fuel Expense Gain on mach. sale Change in interest payable 28.900 21,200 3,400 5,800 91,660 12,100 9,400 4.800 22,600 5,800 11,100 (2,400) Crops Sold $189,600 Insurance 3,800 Interest Paid 33,400 Feeder Livestock Purch. 46,500 Seed Purchased 6,410 Vet. & Health Expense 4,800 Income from Custom Work 4,700 Gain on Sale of Breeding Stock 7,600 Gov't payment income 8,890 Chemical exp. 9,780 Change in acct. payable +1,400 Other Information $785,000 Average Asset Value (2007) Opportunity Cost of Operator Labor Opportunity Cost of Operator Management Opportunity Cost of Capital 24,000 Family Living Expenses Income Tax Paid Owner's Equity (12/31) Average Equity Value $ 38,000 10,700 $402,000 $375,675 12,000 9% 7. What is the Operating Profit Margin Ratio? Compute the Asset Turnover Ratio which is Total Revenue divided by Total Assets. What does this value mean? How do you interpret it? 9. How much did I. M. Farmer's equity increase or decrease during the past year? 10. What was I. M.'s equity on January 1? 11. Value of Farm Production is a concept defined as Total Revenue minus livestock purchased minus feed purchased. What was I. M's Value of Farm Production for the past year? 12. What does Value of Farm Production Measure