Exercise 3.1 Fill in the change, percent for question 1. Fill in the index numbers for question 2. Outline the potential strengths and weakness of the business for the question 1, & question 2. If you were the manager, what would be your strategy looking at the comparative analysis, and the index numbers? Create a comparative analysis of the following information. 2010 2011 Change Percent Value of farm $511535 $ 594932 production Depreciation $ 33300 $ 37900 expenses Net farm Income $120260 $101644 after taxes Use the information from table-2 to create an Index Number Trend Series with 2007 as the base year Table-2 2007 2008 2009 2010 Total assets 994423 1029340 1 067142 1 119785 Total Liabilities 554168 530740 5 13124 4 81749 Contributed capital 373181 398528 403008 465498 and retained earnings Index Number Trend Series 2010 2007 2008 2009 Total assets Total Liabilities Contributed capital and retained earnings Use the information from Table-3 to create a Common Size Income statement. Table-3 2008 2010 4 Value of farm production Depreciation expenses Operating expenses Nonfarm income Net income after taxes 35978 29300 328893 26094 59034 2009 Historical 470622 29300 3 29871 26254 193360 $ 511535 $ 33300 3 40774 2011 Pro forma S 594932 S 37900 2012 30180 31714 $1202605101644 Common Size Income statement 2007 2008 2009 2010 2011 Pro forma 100 100 100 100 100 Value of farm production Depreciation expenses Operating expenses Nonfarm income Net Income after taxes