Eric has gathered the information on the next page. He started to set up some financial statements, but got lost. Fill in the missing information. He did not buy or sell any machinery or buildings during the year. There is no non-farm income. There was no contributed capital during the year.

Balance Sheet / (cost basis)

2014

2015

2014

2015

Assets

Liabilities

Current assets

Current Liabilities

Cash

50,000

65,000

Accounts Payable

13,000

Market Livestock

20,000

48,000

Cur. Port. term debt

40,000

46,000

Total Current assets

70,000

113,000

Total Cur. Liabilities

50,000

59,000

Non-current Assets

Non-current Liabilities

Machinery

350,000

310,000

Mortgage

380,000

334,000

Building

130,000

95,000

Total NC Liabilities

380,000

334,000

Land

550,000

550,000

Total NC Assets

955,000

Total Liabilities

430,000

393,000

Total Assets

1,100,000

1,068,000

Owner Equity

670,000

Income Statement Statement of Owner Equity

January 1, 2008 to December 31, 2008 Jan 1, 2008 to Dec. 31, 2008

Revenue

Beginning Owner Equity

670,000

Cash Receipt

725,000

Chgs. Contrib. Cap. RE

Chg. Livestock Inventory

Net Income

Gross Revenue

753,000

Withdrawals

Contributed Capital

0

Expenses

Total Change in Contributed Capital and retained earnings

Cash op. expense

520,000

Noncash adj.

Ending Owner Equity

Change Acct. Pay.

3,000

Depreciation

Machinery

40,000

Building

35,000

Total Operating expense

Interest Expense

44,000

Total Farm Expenses

NFIO

Income Taxes

25,000

Net Income