B D Beginning Balance lant C 2017 Endine Balance Dec 31 522 D Net Change E 2018 Based on Beginning Balance Vertical Vertical Balance Analysis for Analysis for 1 2017 2013 5222 0 141 2019 0032 DOO 3.500 800 Numer tertion Analysis 2017 2018 1933.77 -100.00 48,282 800 57385 57,385 2314 2210 0.00% Dent to assertie 2017 beginning Debt to strato 2013 56.000 6,000 000 7.000 1,000 56,000 7 000 23 02 2150 0270 0.00% 1667 Dette equity 2017 beginning Detto equitati 2018 2,000 2.000 0 2,000 OORIN 0.00 Current ratio 2017 beginning Current ratio 2018 125.685 174.567 412 174,667 S. 6.726 28.394 32.500 4106 32,500 Quin 2017 beginning Quick 2018 1145 1 14 154.079 2017 167 SO 207,18 62145 7.97 7 Current Assets 1) Cash & checking 21 ACCOU Sable 1 Bl Prepaid penses 4 Cash in Growing Crops 2 nentories 3 5) Marketable Livestock 14 Stored Crops and Feed 2) Purchased Feed 1 8) Supplies 9) Other Current Assets 18 10 TOTAL CURRENT FARM ASSETS 19 Non Fair Assets 11) Saving 12) Marketable Securities 13) Other Non-Form Assets 14) TOTAL CURRENT ASSETS 24 25 Non Current Assets 15) Breeding Livestock 16] Vehicles 21 171 Machinery. Equipment 29 181 Investment in Capital Leases 30 191 Contracts & Notes Receivable 20) Investment in Cooperatives 21) Real Estate and 22) Building & improvements 23) Other Non rente 35 24) TOTAL NON CURRENT FARM ASSETS 36 Nofarm Anets 251 Cash Value, Life Insurance 70 26restment in Others 271 Other Non-Farm Assets 40 281 TOTAL NON CURRENT ASSETS 41 42 29) TOTAL ASSETS 43 4 Current Liabil Sheet1 195.000 88000 295,500 195.000 77.400 567.957 3,600 22,451 195,000 72.400 367,953 75 3.A 11917 7.500 29IN 14 16 ODON -100 245 400 18,000 18.400 1,590 DOO 1,590,000 46.161 o 0 2.231.500 2.214,918 47 000 18.400 1.500.000 46,161 o 2,294918 -899 0.72 641228 1.895 0.000 89995 223 DOON -19 . 612 177 DOON 31 63418 2. 14,056 14.954 15.000 16 000 65 DOO 633 2,395 556 5673 1,000 -1,161 54,115 14,914 16,000 6.89 2,389,671 05679 OSOS 26211 9378 051 0.610 24 92022N 6.10 66 19 2.76% 2,479,635 2. 117,203 2,546,38 100 000% 100 DOON 471 + B D E F G H 0.963 15,000 153,552 26,368 10,728 25.000 85.000 35,500 17,719 10,000 -68552 9,132 6,991 25,000 85,000 35,500 17,719 0505 6 193 1069 0.433 1 367 05R2 66.67% -44.643 34 63% 65.17 1,647 1,647 1,647 0.00 0063 0.00N 10,350 10,350 41.340 10,350 41,461 0.417 1.667% 121 41.461 0.999% 1597 OOON 029 258,985 216,677 -42,300 216,677 10.444% 8.344 -16 34 4,164 4,576 412 4,576 0.168 0.176% 263,149 221,253 -41,896 221,253 10 612 8.520% 43 44 Current Liabilities 30) Accounts Payable 45 31) Line of Credit and Operating Notes 47 32) Current Portion of Term Debt 4E 33) Accrued interest 49 Taxes Payable 50 34) Ad Valorem 51 35) Employee Payroll Withholding 12 36) Income Taxes 53 37) Deferred Taxes 54 38) Other Accrued Expenses 55 39) Other Current Liabilities 40) TOTAL CURRENT FARM LIABILITIES 57 Non-farm Liabilities 58 41) Non-Farm Notes & Interest 59 42) Other Non-Farm Liabilities 60 43) TOTAL CURRENT LIABILITIES 61 62 Non-Current Liabilities 63 44) Notes Payable, Non-Real Estate 54 45) Notes Payable Real Estate 69 46) Deferred Taxes 66 47) Other Non-Current Liabilities 67 48) TOTAL NON-CURRENT FARM LIABILITIES 58 Non-Farm Liabilities 69 49) Non-Farm Notes 70 50) Other Non-Farm Liabilities 71 51) TOTAL NON-CURRENT LIABILITIES 72 7352) TOTAL LIABILITIES 74 75 56) TOTAL EQUITY 76 7757) TOTAL LIABILITIES & EQUITY 78 -15,92% 17,319 140,674 200,245 134,944 124, 189 207,960 117,625 -16,485 7,715 134,944 124, 189 207,960 0.698 5.673 8.0765 5.196% 4.782% 8.008% 679.17% -11.72% 3.85% 358,238 467,093 108,855 467,093 14.447% 17987% 30.39% 12,216 7,691 -4,525 7,691 0.493% 0.296 -37.04% 370,454 474,784 104,330 474,784 14 940% 18.283% 28. 16% 633,603 696,037 62,434 696,037 25 5529 26.803 1.846,032 1,900, 801 54.769 1.900,801 74.448% 73.197% 2.97% 2,479,635 2,596,838 117 203 2,596,838 100.000% 100.000% 4.73% Now answer the following questions 1. Which measure of liquidity listed below would you recommend for the owner of the operation to pay attention to: a) Net working capital b) Current ratio, or c) Quick ratio Justify your answer. 2. Has the liquidity of the operation improved from beginning 2017 to beginning 2018? Explain. 3. Which item in the balance sheet has more weight on liquidity in the beginning balance of 2017 and which in the beginning balance of 2018? 4. Has the operation's solvency improved from beginning 2017 to beginning 2018? Explain. Rework on this exercise considering that in beginning 2018 you had to liquidate all noncurrent assets for .80 cents a $1. 5. Does the operation have a good investment balance? (Hint: check the debt to equity ratio) 6. Calculate the equity multiplier for beginning 2017 and beginning 2018 7. Now use information from #6 and the information from the table below to compute the Du Pont identity for the two years Ratio Beginning 2017 Beginning 2018 PM 2.4% 0.567 TAT 2.1% 0.789 8. Inventory turnover for marketable livestock is 1.2 and stored crops and feed inventory is 3.5. What does this mean? B D Beginning Balance lant C 2017 Endine Balance Dec 31 522 D Net Change E 2018 Based on Beginning Balance Vertical Vertical Balance Analysis for Analysis for 1 2017 2013 5222 0 141 2019 0032 DOO 3.500 800 Numer tertion Analysis 2017 2018 1933.77 -100.00 48,282 800 57385 57,385 2314 2210 0.00% Dent to assertie 2017 beginning Debt to strato 2013 56.000 6,000 000 7.000 1,000 56,000 7 000 23 02 2150 0270 0.00% 1667 Dette equity 2017 beginning Detto equitati 2018 2,000 2.000 0 2,000 OORIN 0.00 Current ratio 2017 beginning Current ratio 2018 125.685 174.567 412 174,667 S. 6.726 28.394 32.500 4106 32,500 Quin 2017 beginning Quick 2018 1145 1 14 154.079 2017 167 SO 207,18 62145 7.97 7 Current Assets 1) Cash & checking 21 ACCOU Sable 1 Bl Prepaid penses 4 Cash in Growing Crops 2 nentories 3 5) Marketable Livestock 14 Stored Crops and Feed 2) Purchased Feed 1 8) Supplies 9) Other Current Assets 18 10 TOTAL CURRENT FARM ASSETS 19 Non Fair Assets 11) Saving 12) Marketable Securities 13) Other Non-Form Assets 14) TOTAL CURRENT ASSETS 24 25 Non Current Assets 15) Breeding Livestock 16] Vehicles 21 171 Machinery. Equipment 29 181 Investment in Capital Leases 30 191 Contracts & Notes Receivable 20) Investment in Cooperatives 21) Real Estate and 22) Building & improvements 23) Other Non rente 35 24) TOTAL NON CURRENT FARM ASSETS 36 Nofarm Anets 251 Cash Value, Life Insurance 70 26restment in Others 271 Other Non-Farm Assets 40 281 TOTAL NON CURRENT ASSETS 41 42 29) TOTAL ASSETS 43 4 Current Liabil Sheet1 195.000 88000 295,500 195.000 77.400 567.957 3,600 22,451 195,000 72.400 367,953 75 3.A 11917 7.500 29IN 14 16 ODON -100 245 400 18,000 18.400 1,590 DOO 1,590,000 46.161 o 0 2.231.500 2.214,918 47 000 18.400 1.500.000 46,161 o 2,294918 -899 0.72 641228 1.895 0.000 89995 223 DOON -19 . 612 177 DOON 31 63418 2. 14,056 14.954 15.000 16 000 65 DOO 633 2,395 556 5673 1,000 -1,161 54,115 14,914 16,000 6.89 2,389,671 05679 OSOS 26211 9378 051 0.610 24 92022N 6.10 66 19 2.76% 2,479,635 2. 117,203 2,546,38 100 000% 100 DOON 471 + B D E F G H 0.963 15,000 153,552 26,368 10,728 25.000 85.000 35,500 17,719 10,000 -68552 9,132 6,991 25,000 85,000 35,500 17,719 0505 6 193 1069 0.433 1 367 05R2 66.67% -44.643 34 63% 65.17 1,647 1,647 1,647 0.00 0063 0.00N 10,350 10,350 41.340 10,350 41,461 0.417 1.667% 121 41.461 0.999% 1597 OOON 029 258,985 216,677 -42,300 216,677 10.444% 8.344 -16 34 4,164 4,576 412 4,576 0.168 0.176% 263,149 221,253 -41,896 221,253 10 612 8.520% 43 44 Current Liabilities 30) Accounts Payable 45 31) Line of Credit and Operating Notes 47 32) Current Portion of Term Debt 4E 33) Accrued interest 49 Taxes Payable 50 34) Ad Valorem 51 35) Employee Payroll Withholding 12 36) Income Taxes 53 37) Deferred Taxes 54 38) Other Accrued Expenses 55 39) Other Current Liabilities 40) TOTAL CURRENT FARM LIABILITIES 57 Non-farm Liabilities 58 41) Non-Farm Notes & Interest 59 42) Other Non-Farm Liabilities 60 43) TOTAL CURRENT LIABILITIES 61 62 Non-Current Liabilities 63 44) Notes Payable, Non-Real Estate 54 45) Notes Payable Real Estate 69 46) Deferred Taxes 66 47) Other Non-Current Liabilities 67 48) TOTAL NON-CURRENT FARM LIABILITIES 58 Non-Farm Liabilities 69 49) Non-Farm Notes 70 50) Other Non-Farm Liabilities 71 51) TOTAL NON-CURRENT LIABILITIES 72 7352) TOTAL LIABILITIES 74 75 56) TOTAL EQUITY 76 7757) TOTAL LIABILITIES & EQUITY 78 -15,92% 17,319 140,674 200,245 134,944 124, 189 207,960 117,625 -16,485 7,715 134,944 124, 189 207,960 0.698 5.673 8.0765 5.196% 4.782% 8.008% 679.17% -11.72% 3.85% 358,238 467,093 108,855 467,093 14.447% 17987% 30.39% 12,216 7,691 -4,525 7,691 0.493% 0.296 -37.04% 370,454 474,784 104,330 474,784 14 940% 18.283% 28. 16% 633,603 696,037 62,434 696,037 25 5529 26.803 1.846,032 1,900, 801 54.769 1.900,801 74.448% 73.197% 2.97% 2,479,635 2,596,838 117 203 2,596,838 100.000% 100.000% 4.73% Now answer the following questions 1. Which measure of liquidity listed below would you recommend for the owner of the operation to pay attention to: a) Net working capital b) Current ratio, or c) Quick ratio Justify your answer. 2. Has the liquidity of the operation improved from beginning 2017 to beginning 2018? Explain. 3. Which item in the balance sheet has more weight on liquidity in the beginning balance of 2017 and which in the beginning balance of 2018? 4. Has the operation's solvency improved from beginning 2017 to beginning 2018? Explain. Rework on this exercise considering that in beginning 2018 you had to liquidate all noncurrent assets for .80 cents a $1. 5. Does the operation have a good investment balance? (Hint: check the debt to equity ratio) 6. Calculate the equity multiplier for beginning 2017 and beginning 2018 7. Now use information from #6 and the information from the table below to compute the Du Pont identity for the two years Ratio Beginning 2017 Beginning 2018 PM 2.4% 0.567 TAT 2.1% 0.789 8. Inventory turnover for marketable livestock is 1.2 and stored crops and feed inventory is 3.5. What does this mean