Balance Sheet, Jan 1, 2019
Current Assets	Cost		Current Liabilities	Cost
Cash	13,000		Accounts Payable	35,000
Corn Grain Inventory	20,000		Interest Payable	11,850
Wheat Inventory	10,000		Principal Farm Mortgage	20,000
Prepaid expenses	5,500		Principal Beef Loan	10,000
Feed on hand	80,000		Operating Loan	75,000
Market Livestock	32,000		Property Taxes Payable	15,000
Accounts Receivable	2,000
Supplies	4,000
Total current assets	166,500		Total current liabilities	166,850
Intermediate Assets			Intermediate Liabilities
Machinery	300,000		Beef Loan	100,000
Beef Breeding Stock	55,000
Titled Vehicles	26,000
Total Intermediate Assets	381,000		Total Intermediate Liabilities	100,000
Long-Term Assets			Long-term Liabilities
Land	318,000		Farm Mortgage	170,000
Buildings	67,000
Total Long-term Assets	385,000		Total Long-term Liabilities	170,000
			Total liabilities	436,850
			Owner equity	495,650
Total Assets	932,500		Total liabilites & owner equity	932,500

Question 3

On a new sheet in your spreadsheet file, assess the change in the farms liquidity, solvency, and debt structure over the year. You will need to calculate the liquidity, solvency, and debt structure measures that rely solely on the balance sheet information at the beginning of the year and at the end of the year to be able to assess the change over the year. Interpret your ratios.

That is, explain in words what the numbers mean. Where possible, indicate where Deans liquidity, solvency, and debt structure numbers fall on the farm finance scorecard. Did Deans farm financial condition improve or get worse over the year?

Your spreadsheet file should have 4 sheets: Beginning Balance Sheet, Ending Balance Sheet, Depreciation, and Ratios.