From the balance sheet numbers (assignment 4, use the key that is now posted to the website), calculate the Debt to Asset Ratio based on averages from the Beginning and Ending Balance sheet. Would you consider this number (very strong, strong, weak, or critically weak). Explain

Supplementary Information for Income Statement exercise You will need the beginning and ending balance sheet from Homework 4 (or the change column). Cash crop sales for year $368,265.00, Cash livestock sales for year (all purchased, none raised) $463,250.00, Ag Program payments for year $19,765.00, Custom Work Income for Year $2,900.00, Expenses, livestock Purchases for year $445,200.00, Feed Purchases for year $17,400.00, Labor $13,250.00, Repairs $17,250.00, seed $28,765.00, Fertilizer $51,223.00, Machine Hire $28,375.00, Vet $3,475.00, Marketing $5,875.00, Fuel $26,200.00, Utilities $5,750.00, Property Tax (Ad Valorem) 3,325.00, Insurance $6,345.00, Cash Rent $24,350.00, Herbicide and Insecticide $27,650.00, Miscellaneous $9,825.00

Be sure to account for the following accrual adjustments: Change in Market livestock inventory (and be able to explain why the sign on this entry is what it is) Change in stored crops inventory (and be able to explain why the sign on this entry is what it is) Change in accounts receivable (and be able to explain why the sign on this entry is what it is) Change in investment in growing crops (and be able to explain why the sign on this entry is what it is) Change in supplies (and be able to explain why the sign on this entry is what it is)

Change in accounts payable (and be able to explain why the sign on this entry is what it is) Change in accrued interest (and be able to explain why the sign on this entry is what it it) Management Depreciation for the accounting period is $66,350.00 The farm paid $64,178.00 in farm interest during the year. The farm sold a tractor and some equipment for $8,250.00 more than the management book value at the time of sale. Ignore the non-farm section of the income statement Fill in the Blank Example Income Statement and calculate net farm income Assume the farm needs to draw $25,000 from this farm in unpaid family labor. Calculate Return on Assets (based on average assets for the year) for this farm using the FFSG guidelines. Would you consider your calculated measure satisfactory?

D Net Change B C Beginning Balance Ending balance 122,250 110,250 2.000 12.000 - 12.000 5,000 120,000 120,000 0 573,750 69.000 528,750 68.000 Current Assets B 1) Cash & Checking 2) Accounts Receivable 10 1) Prepaid Expenses 1 4) Cash investment Growing Crops 2 Inventories 5) Marketible Livestock 14 6) Stored Crops and Feed 5 3) Purchased Feed Supplies 7 9) Other Current Assets 810) TOTAL CURRENT FARM ASSETS 9 Non-Farm Assets 0 11) Saving ) 123 Marketable Securities 13 Other Non Farm Assets -45,000 -1,000 0 500 1,500 2.000 893,500 9441.0XXO -52,500 O 0 14) Total Current Assets 893,500 841.000 52,500 AND stock 1 V 12 Machine Catalan Chi Herce motive 21 Balance Sheet 12 135.000 7000 125,00 O # TU O A A L2.000 12. 1. 1 325 O > 23 > TETALINE FARMA am Arts 251 CV HO AN TOTAL CURRENT ASET TOTAALSET 3.27 12.00 -17950 3.97 D E F 3.000 596,200 73.414 22.000 5,500 573,200 74,220 21,000 3.500 23,000 786 - 1,000 Current Latities 730) Accounts Payable 48 11) line of credit and Operating Notes 49 30) Current Portion of Term Debt S033) Accrued interest SO 51 Taxes Payable 2 34) Ad Valorem 53 35 Employee Payroll Withholding 54 36) Income Taxes Deferred Taxes 56 Other Accrued pemes 39) Other Current abilities 11 40 TOTAL CURRENT FARM LIABILITIES ) 59 Non-farm Liabilities CO 41) Nom Notes Interest 1 th NonFarm Liabilities 4 TOTAL CURRENT LIABILITIES O 0 0 0 0 0 O D 694,634 574,020 19,716 0 694434 674,920 19.714 46,545 329,166 286.900 282,621 277,225 Non Current Liabilities 14) Notes Payable, non-Heal Estate 45) Notes Payable Real Estate 46) Deferred Taxes 47) Other Non-Current Liabilities 48) TOTAL NON-CURRENT FARM LIABILITIES Non-Farm Liabilities 19 Non-Farm Notes 50) Other Non Farm Liabilities 51) TOTAL NON CURRENT LIABILITIES 0 o -54,220 614,066 559,846 0 614,066 559,846 D 54,220 52) Total Liabilities 1,308,700 1,234,766 73,934 Owne Equity 53) Contributed Capital SA Retained Earnings 5) Total Valuation Equity 0 O O 56) TOTAL EQUITY 1,670,175 1,568,609 -101,566 57) TOTAL LIABILITIES & EQUITY 2,978.875 2.803,375 -175,500 Balance Sheet Sh D Net Change B C Beginning Balance Ending balance 122,250 110,250 2.000 12.000 - 12.000 5,000 120,000 120,000 0 573,750 69.000 528,750 68.000 Current Assets B 1) Cash & Checking 2) Accounts Receivable 10 1) Prepaid Expenses 1 4) Cash investment Growing Crops 2 Inventories 5) Marketible Livestock 14 6) Stored Crops and Feed 5 3) Purchased Feed Supplies 7 9) Other Current Assets 810) TOTAL CURRENT FARM ASSETS 9 Non-Farm Assets 0 11) Saving ) 123 Marketable Securities 13 Other Non Farm Assets -45,000 -1,000 0 500 1,500 2.000 893,500 9441.0XXO -52,500 O 0 14) Total Current Assets 893,500 841.000 52,500 AND stock 1 V 12 Machine Catalan Chi Herce motive 21 Balance Sheet 12 135.000 7000 125,00 O # TU O A A L2.000 12. 1. 1 325 O > 23 > TETALINE FARMA am Arts 251 CV HO AN TOTAL CURRENT ASET TOTAALSET 3.27 12.00 -17950 3.97 D E F 3.000 596,200 73.414 22.000 5,500 573,200 74,220 21,000 3.500 23,000 786 - 1,000 Current Latities 730) Accounts Payable 48 11) line of credit and Operating Notes 49 30) Current Portion of Term Debt S033) Accrued interest SO 51 Taxes Payable 2 34) Ad Valorem 53 35 Employee Payroll Withholding 54 36) Income Taxes Deferred Taxes 56 Other Accrued pemes 39) Other Current abilities 11 40 TOTAL CURRENT FARM LIABILITIES ) 59 Non-farm Liabilities CO 41) Nom Notes Interest 1 th NonFarm Liabilities 4 TOTAL CURRENT LIABILITIES O 0 0 0 0 0 O D 694,634 574,020 19,716 0 694434 674,920 19.714 46,545 329,166 286.900 282,621 277,225 Non Current Liabilities 14) Notes Payable, non-Heal Estate 45) Notes Payable Real Estate 46) Deferred Taxes 47) Other Non-Current Liabilities 48) TOTAL NON-CURRENT FARM LIABILITIES Non-Farm Liabilities 19 Non-Farm Notes 50) Other Non Farm Liabilities 51) TOTAL NON CURRENT LIABILITIES 0 o -54,220 614,066 559,846 0 614,066 559,846 D 54,220 52) Total Liabilities 1,308,700 1,234,766 73,934 Owne Equity 53) Contributed Capital SA Retained Earnings 5) Total Valuation Equity 0 O O 56) TOTAL EQUITY 1,670,175 1,568,609 -101,566 57) TOTAL LIABILITIES & EQUITY 2,978.875 2.803,375 -175,500 Balance Sheet Sh