Question
Crops & feed revenue $ 255,200 Livestock and livestock product revenue 305,000 Total nonfarm income 21,000 Total farm operating expenses 441,500 Depreciation expense 56,400 Income
| Crops & feed revenue | $ 255,200 |
| Livestock and livestock product revenue | 305,000 |
| Total nonfarm income | 21,000 |
| Total farm operating expenses | 441,500 |
| Depreciation expense | 56,400 |
| Income tax expense | 10,730 |
| Interest expense | 88,976 |
| Withdrawals for family living | 30,500 |
| Principal payments on unpaid operating debts | 500 |
| Principal payments on current portions of debt & leases | 30,800 |
a. (2.5pts) Calculate capital replacement and term debt repayment capacity for Tiger-Farms.
b. (2.5pts) Calculate capital replacement and term debt repayment margin (CRDRM) for Tiger-Farms.
c. (5pts) Calculate the percentage that crop & feed revenue and livestock/livestock product revenue can decline and maintain a positive (non-negative) CRDRM.
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald W. Hilton
11th edition
125956956X, 978-1259569562
