Assume Stan Farms 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 analysis for Stan Farms. Inventory values Jan.1 $32,850 Dec. 31 $25,440 Crops Depreciation Feed Purchased Property Taxes Misc. Expenses Market Livestock Sold Repairs Fertilizer Expenses. Supplies (Expenses) Labor Hired Fuel Expense Gain on machine sale Revenue and Expenses 28,910 Crops Sold 21,400 Insurance 3,400 Interest Paid 5,800 Feeder Livestock Purchase 91,660 Seed Purchased 12,100 Vet. & Health Expense 15,400 Income from Custom Work 4,800 Gain on Sale of Breeding Stock 22,600 Gov't payment income 5,800 Chemical Expense 11,100 Change in account. payable $189,600 12,800 33,400 46,500 6,410 4,800 4.700 7,600 10,890 9,780 1,400 Other Information $785,000 24,000 12,000 9% Average Asset Value Opportunity Cost of Operator Labor Opportunity Cost of Operator Management Opportunity Cost of Capital Family Living Expenses Income Tax Paid Owner's Equity (12/31) Average Equity Value $38,000 10,700 $402,000 $375,675 1. (10 points) What was Net Farm Income from Operations? 2. (10 points) What was Net Farm Income? 3. (5 points) What was Adjusted Net Farm Income from Operations? 4.(15 points) Compute Return to Labor and Management.(Hint: you need to calculate opportunity cost of owner equity] 5. (15 points) Compute Return on Assets Ratio (in %). 6. (15 points) Compute Return on Equity Ratio (in %). 2 7. (10 points) What is the Operating Profit Margin Ratio? 8. (10 points) Compute the Asset Turnover Ratio. What does this value mean? How do you interpret it? 9. (10 points) What was the Capital Debt Repayment Capacity (CDRC Assume Stan Farms 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 analysis for Stan Farms. Inventory values Jan.1 $32,850 Dec. 31 $25,440 Crops Depreciation Feed Purchased Property Taxes Misc. Expenses Market Livestock Sold Repairs Fertilizer Expenses. Supplies (Expenses) Labor Hired Fuel Expense Gain on machine sale Revenue and Expenses 28,910 Crops Sold 21,400 Insurance 3,400 Interest Paid 5,800 Feeder Livestock Purchase 91,660 Seed Purchased 12,100 Vet. & Health Expense 15,400 Income from Custom Work 4,800 Gain on Sale of Breeding Stock 22,600 Gov't payment income 5,800 Chemical Expense 11,100 Change in account. payable $189,600 12,800 33,400 46,500 6,410 4,800 4.700 7,600 10,890 9,780 1,400 Other Information $785,000 24,000 12,000 9% Average Asset Value Opportunity Cost of Operator Labor Opportunity Cost of Operator Management Opportunity Cost of Capital Family Living Expenses Income Tax Paid Owner's Equity (12/31) Average Equity Value $38,000 10,700 $402,000 $375,675 1. (10 points) What was Net Farm Income from Operations? 2. (10 points) What was Net Farm Income? 3. (5 points) What was Adjusted Net Farm Income from Operations? 4.(15 points) Compute Return to Labor and Management.(Hint: you need to calculate opportunity cost of owner equity] 5. (15 points) Compute Return on Assets Ratio (in %). 6. (15 points) Compute Return on Equity Ratio (in %). 2 7. (10 points) What is the Operating Profit Margin Ratio? 8. (10 points) Compute the Asset Turnover Ratio. What does this value mean? How do you interpret it? 9. (10 points) What was the Capital Debt Repayment Capacity (CDRC
