FINANCIAL SITUATION ON DECEMBER 31, 2011 Cash on hand Farm $2,000 Family $5,300 Buildings House (personal asset) Household goods (furniture, etc.) 76,520 (book value) Personal liabilities Machinery Accounts receivable Livestock 19,461 (book value) 41,000 (market value) 98,500 (book value) 162,000 (market value) 64,800 (market value) 6,763 776.516 (book value) 1,261,429 (market value) 20,000 Raised breeding livestock 250 head of cows plus 48 head of replacement heifers with a base value of $550 per head and a market value of $500 per head Purchased breeding livestock including 12 bulls and 2 horses 10,769 (book value) value) Mkt. Heifers (1,000 Ibs.) Mkt. Steers (1,150 1bs.) Feeder steers (850 Ibs.) $17,000 (market 25 head @ $85/ cwt 40 head a S85/ wt 10 head @ $75/ cwt Crops on hand Hay 755 tons at $70/ton Malt Barley 7,750 cwt @ $6.35 / cwt Potatoes 155,000 cwt. @ $4.10 / cwt Other Feed Prepaid expenses Supplies Cash invested in growing crops Mortgage on farm 45,000 1,100 7,500 Principle due in 2012 16,971 Principle after 2012 617,372 Note on Machinery Principal due in 2012 30,000 Principal after 2012 245,000 726,000 Operating Loan Accrued interest Mortgage Machinery loan Operating loan 60,000 1800 1266 6200 Outstanding Bills Land 650 acres purchased for $500 per acre, 350 acres purchased for $650 per acre, and 500 acres purchased for S500 peer acre All the land has a market value of $900 per acre (Note: This does not include the value of irrigation equipment.) Accrued property tax on farm Income tax payable on farm Investment in cooperative 25,100 (book value and market value) There is no contributed capital. Capital that was originally contributed has since been withdrawn The tax rate for deferred tax on current assets is 38% and 35% for deferred tax on non-current assets. There are no CCC loans, Savings, or futures and options accounts. 4,112.5 39,280 FINANCIAL SITUATION ON JANUARY 1, 2011 Cash on hand Farm $2107 Family $1,840 22,435 (book value) 41,000 (market value) 98,500 (book value) 156,000 (market value) Buildings House (personal asset) Household goods (furniture, etc.) 76,520 (book value) Personal liabilities Machinery Accounts receivable Livestock 66,500 (market value) 5,818 1.351,588 (market value) 910,580 (book value) 15,000 Raised breeding livestock 250 head of cows plus 48 head of replacement heifers with a base value of $550 per head and a market value of $550 per head Purchased breeding livestock including 12 bulls and 2 horses 10,965 (book value) $17,200 (market value) Mkt. Heifers (1,000 lbs.) Mkt. Steers (1,150 Ibs.) Feeder steers (850 Ibs.) none none none Crops on hand Hay 600 tons at S85 ton Malt Barley 10,000 cwt @ $6 /ewt Potatoes 152,500 cwt. @ $4.45 / ewt Other Feed Prepaid expenses Supplies Cash invested in growing crops Mortgage on farm 350 5,000 1,000 15,000 Principle due in 2011 15,860 Principle after 2011 634,343 Note on Machinery Principal due in 2011 25,000 Principal after 2011 275,000 827,270 Operating Loan Accrued interest Mortgage Machinery loan Operating loan 15,000 2,000 1,130 7,000 Outstanding Bills Land 650 acres purchased for $500 per acre, 350 acres purchased for $650 per acre, and 500 acres purchased for S500 peer acre. All the land has a market value of $850 per acre (Note: This does not include the value of irrigation equipment.) Accrued property tax on farm Income tax payable on farm Investment in cooperative 25,100 (book value and market value) There is no contributed capital. Capital that was originally contributed has since been withdrawn The tax rate for deferred tax on current assets is 38% and 35% for deferred tax on non-current assets. There are no CCC loans, Savings, or futures and options accounts. 4,032 39,000 DURING THE CALENDAR YEAR 2011 THE FOLLOWING TRANSACTIONS WERE RECORDED IN THE RECORDS OF THE FARMER (assume them to be cash transactions unless noted otherwise) 73 steers weighing 550 pounds sold for $84 /cwt. 40 heifers weighing 500 pounds sold for $79/cut Sale of calves (note: 40 steers and 25 heifers were held over to be fed ) Crops sales Government Program receipts 3 aged bulls were sold for $2376 (they had a book value of $1275) 38 cull cows were sold for $17,974 5 replacement heifers were sold for $2790 Crop insurance proceeds $5000 Patronage dividends 10 feeder steers weighing 850 pounds were purchased for $75 ewt Feed purchases $1740 Chemicals Custom Hire $2,.423,025 $2,500 $7,500 71,807 93,152 106,171 3,112 Fertilizer Freight and trucking Gas, Fuel, and Oil Insurance Labor Hired 23,750 28,031 93,218 Equipment and Vehicle leases Land Rent (Pasture) Repairs and Maintenance 45,888 Seed 23,400 96,875 Storage and Wharehousing Supplies Taxes (not income taxes) 16369 Utilities 27,717 Veterinary, breeding, and medicine 3,841 Other Interest paid Machinery was sold for $9,160 that had a book value of $0 Off-Farm income of Income tax paid 75,950 331 47,014 84,667 $3,421 was received Farm Personal $39,000 $1,300 A new swather with a 14 ft. header was purchased for $55,000 New carpet and drapes for home The current portion of term debt indicated on the balance sheet was paid on time. A new operating loan for $748,730 was taken out. $850,000 was paid on the operating loan. This included paying off the loan on the beginning balance sheet and paying off part of the new loan Breeding livestock was purchased for 5,100 There was a net inflow of $1810 in personal borrowings. 2,500