Given the following information concerning BENRY AGRO farm for the year 2022

800,000 Total assets of capital

60,000 Total current liabilities

260,000 Total cash flow receipts and capital sales

50,000 Total annual debt payments

15, 000 non-farm income

12,000 Family living expenses

3,000 Income taxes

200,000 Total cash farm expenses excluding interest.

35,000 Farm interest expense

22,000 Farm depreciation expense

10,000 Inventory increases

70,000 Total current liabilities

Questions

a. What is the current ratio on BENRY AGRO farm?

b. What is the equity value ratio on the BENRY AGRO farm?

c. What is the cash available for risk and uncertainty?

d. What is the cash flow coverage ratio for BENRY AGRO farm?

e. If the cash flow coverage ratio did not meet expectations of BENRY AGRO farm management or lenders, what methods could be employed to improve the ratio?

f. What is the debt payment ratio for BENRY AGRO Farm case situation?

g. what will the ratio of annual debt payments to income would indicate on the annual payments?

h. What is the cash expense-cash receipt ratio (excluding interest) for the BENRY AGRO Farm operation?

i. BENRY AGRO farm operation could handle what percent change in farm income holding expenses and annual payments constant?

j. What is the net farm income for the BENRY AGRO farm?

k. If the BENRY AGRO farm management puts their labour and management at 12,000 a year and there is no unpaid family labour, what is the percent return on capital investment?

l. Given the assumptions outlined in the question , the BENRY AGRO farm return on equity would be: a. Greater than the return on capital investment b. Less than the return on capital investment c. Greater than a certificate of deposit earning 10% d. Greater than a certificate of deposit earning 5%

m. Which statement summarizes BENRY AGRO farm overall financial situation based upon statement analysis? a. Strong liquidity, cash flow, equity position and profitability b. Strong liquidity and equity position, but weak cash flow and profitability c. Moderate liquidity and equity position, but strong cash flow and profitability d. Moderate liquidity and equity position with moderate cash flow measures and poor profitability indicator