ESTION 6 Use the attached financial statements to answer the following question. Calculate the 2010 rate of return on farm equity (ROFE) for TDM Farms. W 1-TOM Farms Financial Statements pdf Oa8.21% Ob.8.03% Oc 7.73% Od. 10.8% SSETS 2009 2010 Current Assets Cash and equivalents $1,000 $1,200 Grain and livestock inventory 60,000 40,000 Other current farm assets 1,000 1,000 Total current assets 62,000 42,200 Noncurrent Assets Machinery and equipment 100,000 110,000 Buildings 20,000 18,000 Land 300,000 290,000 Other noncurrent farm assets 15,000 15,000 Total noncurrent assets 435.000 433.000 Total Farm Assets $497.000 $475.200 LIABILITIES Current Liabilities Notes payable $15,500 $10,550 Accounts payable Current portion of term debt Other current farm liabilities Total current liabilities Noncurrent Liabilities Deferred portion of term debt Total noncurrent liabilities Total Farm Liabilities 2,325 1,582 12,000 14,000 15,000 20,000 44.825 46.132 150,000 136,000 150,000 136,000 $194.825 $182.132 NET WORTH Total Net Worth 302,175 293,068 Total Liabilities and Net Worth $497.000 $475.200 TDM Farms Income Statement Value of farm production $139.160 $160,034 Non-depreciation operating expenses 76.538 79.321 Depreciation 15.000 16,000 Interest expense 14,571 14.570 Net farm income from operations $33.051 $50.143 TDM Farms Other information Family living withdrawals $25,000 $25,700 0 0 Nonfarm income 9,091 6,700 Income tax expense Other income from farm assets 0 0 Prin. payments on current portions tenn debt/cap leases Interest payments on term debt and capital leases 12,000 14,000 13,500 12.240 54F Cloudy