help with this a long$-$time client, Malachite Sod Farms, is beginning a process of transition planning. Its current owner,

Morgan Malachite, has requested information on their profit $($or loss$)$ for $2023.$ Morgan would like to

share the information at the next family reunion, in hopes that one of the adult children might take over

the business in the next five years. Accordingly, your next internship task is to construct a spreadsheet

model of their income statement $($also called profit and loss statement$)$ for the previous year.

Morgan provided the following summary of cash transactions in $2023,$ based on their QuickBooks records,

bank transaction history, and receipts that they keep in the glove box of the company pickup.

$$ Received $$80,000$ in payment for $90$ pallets of sod that were delivered in November $2022.$

$$ Paid two employees $$15,000$ each for labor. Fuel and repairs were $$55,000.$

$$ In $2023,$ sold $12$ pallets of sod for $$6,500$ in January, $135$ sod pallets for $$20,000$ in July, and $70$

pallets of sod in August for $$15,500.$

$$ Total seed, fertilizer, and other supply purchases for the year summed to $$18,500,$ with $$17,000$

of that total being a pre$-$payment for supplies to be delivered in $2024.$

$$ In March, took out a new operating loan for $$30,000.$

$$ Sold $$55,000$ in ornamental house plants via wholesale channels in November and December.

$$ Received a total of $$2,200$ for mowing a neighbor's ranchette lawn throughout the year.

$$ Principal and interest paid on loans was $$97,500$ and $$19,300$ respectively.

$$ Depreciation claimed in $2023$ was $$30,000.$ Gain on the sale of capital assets was $$45,000.$

All other inventory amounts are given in the MS Excel template provided on Canvas.

First, construct the client$$s cash$-$basis income statement and use it to determine the cash$-$basis net farm

income $($NFI$)$ and net farm income from operations $($NFIFO$).$ Second, construct the client$$s accrual$-$basis

income statement and use it to determine the accrual$-$adjusted net farm income NFI and NFIFO.

Remember to use Excel equations$/$formulas whenever possible.