Assume U.R. Rancher 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 U.R. Then complete the calculations on the last two pages.

Assume U.R. Rancher has an accounting period runing from January 1 to December 31. Use the following infomation obtained for the past calendar year accounting period to complete an income statement for U.R. Then complete the caloulations on the last two pages. Inventory Values 01-Jan 31-Dec $14,500 20,000 1,800 $14,300 26,000 2,700 Grain and Hay Livestock (market Misc. supplies Income & Expenses 56,000 Crops Sold $2,700 Bldg Depreciation 1,300 20,900 5,800 2,100 4,800 1,400 Insurance Feed Purchased Property Taxes Machinery Depreciation Misc. Expenses Interest Paid Feeder Livestock Purchased 22,500 1,900 Seed Purchased 1,100 1,200 Vet. and Health Expense Market Livestock Sold 70,500 2,800 Gain on Sale of Breeding Livestock Gain on Sale of Machinery Income from Custom Work Gas & Oil Expense Repairs Misc. Income Fertilizer & Chemical Expen 2,600 1,700 2,800 1,500 5,400 12,400 Labor Hired Other Information Family living $15,000 $520,000 Average Asset value xpenses Income tax paid last S7,300 $12,000 Opportunity cost of ar Net worth 12/31 labor $350,000 Opportunity cost of management $4,000 Opportunity cost of capital 10% SHOW WORK WHERE NEEDED What was Net Farm Income from Operations? 1. 2 What was Net Farm Income? How much did U.R. Rancher's equity increase or decrease during the past year? 3. What was U.R.'s equity on January 4. 12 5. What was the average equity in the past year? Compute Adjusted Net Farm Income from Operations: 6 Compute Return to Labor and Management: Compute Return to Labor 8. 9. Compute Return to Management: 10. Compute Percent Return on Assets: Compute Percent Return on Equity: 11. % Provide your assessment of the profitability of this business. 12. Assume U.R. Rancher has an accounting period runing from January 1 to December 31. Use the following infomation obtained for the past calendar year accounting period to complete an income statement for U.R. Then complete the caloulations on the last two pages. Inventory Values 01-Jan 31-Dec $14,500 20,000 1,800 $14,300 26,000 2,700 Grain and Hay Livestock (market Misc. supplies Income & Expenses 56,000 Crops Sold $2,700 Bldg Depreciation 1,300 20,900 5,800 2,100 4,800 1,400 Insurance Feed Purchased Property Taxes Machinery Depreciation Misc. Expenses Interest Paid Feeder Livestock Purchased 22,500 1,900 Seed Purchased 1,100 1,200 Vet. and Health Expense Market Livestock Sold 70,500 2,800 Gain on Sale of Breeding Livestock Gain on Sale of Machinery Income from Custom Work Gas & Oil Expense Repairs Misc. Income Fertilizer & Chemical Expen 2,600 1,700 2,800 1,500 5,400 12,400 Labor Hired Other Information Family living $15,000 $520,000 Average Asset value xpenses Income tax paid last S7,300 $12,000 Opportunity cost of ar Net worth 12/31 labor $350,000 Opportunity cost of management $4,000 Opportunity cost of capital 10% SHOW WORK WHERE NEEDED What was Net Farm Income from Operations? 1. 2 What was Net Farm Income? How much did U.R. Rancher's equity increase or decrease during the past year? 3. What was U.R.'s equity on January 4. 12 5. What was the average equity in the past year? Compute Adjusted Net Farm Income from Operations: 6 Compute Return to Labor and Management: Compute Return to Labor 8. 9. Compute Return to Management: 10. Compute Percent Return on Assets: Compute Percent Return on Equity: 11. % Provide your assessment of the profitability of this business. 12