Homework 7. Income statement Name Sydney Hamilton Fill in the changes in value below. Remember that the change in revenue items and expenses items accrued but not yet paid is calculated as Ending Value - Beginning Value. For expense items paid but not yet accrued, the change is calculated as Beginning Value - Ending Value End of the Year Value Change in Value 288,600 $179,400 3,500 31,200 Beginning of the Year Value Revenue items Crop Inventories $178,000 Market Livestock Inventories 4,500 Accounts Receivable 29,700 Expense items accrued but not paid (expense increasing) Accounts Payable 3,500 Accrued Expenses (other than interest) 2,950 Expense items paid but not accrued (expense decreasing) Prepaid Expenses 2,400 Feed Inventories 1,960 4,150 2,840 4,500 1,840 Use this table along with the following information to complete an income statement. Revenue Items Cash Crop Sales: $290,000 Market Livestock Sales: $95,400 Custom work: $12,000 Operating Expense Items Purchased feed and grain: $122,000 Other cash expenses: $173,000 Depreciation: 36,500 Other Revenue and Expenses Total interest expense: $21,400 Loss on machinery sale: -$800 +Income Statement for Happy Farms Revenue: Cash crop sales Change in crop inventories Market livestock sales Change in market livestock inventories Change in accounts receivable Other farm income Gross revenue Expenses: Purchased feed and grain Change in feed inventories Other cash operating expenses Adjustments: Change in accounts payable Change in accrued expenses (other than interest) Change in prepaid expenses Depreciation nse Total operating expenses Income from operations Other revenue and expenses: Total interest expense Gain or loss on sale of capital assets: Net farm income Other Information: Opportunity cost of unpaid labor and management (total): $30,000 Opportunity interest rate: 4% Average Asset Value: $1,580,000 Average Net Worth: $1,110,000 Use the income statement and the other information to answer the following questions: 1) What is the rate of return on assets (also called percent return to assets)? 2) What is the rate of return on equity (also called percent return to equity)? 3) What is the return to labor and management? Homework 7. Income statement Name Sydney Hamilton Fill in the changes in value below. Remember that the change in revenue items and expenses items accrued but not yet paid is calculated as Ending Value - Beginning Value. For expense items paid but not yet accrued, the change is calculated as Beginning Value - Ending Value End of the Year Value Change in Value 288,600 $179,400 3,500 31,200 Beginning of the Year Value Revenue items Crop Inventories $178,000 Market Livestock Inventories 4,500 Accounts Receivable 29,700 Expense items accrued but not paid (expense increasing) Accounts Payable 3,500 Accrued Expenses (other than interest) 2,950 Expense items paid but not accrued (expense decreasing) Prepaid Expenses 2,400 Feed Inventories 1,960 4,150 2,840 4,500 1,840 Use this table along with the following information to complete an income statement. Revenue Items Cash Crop Sales: $290,000 Market Livestock Sales: $95,400 Custom work: $12,000 Operating Expense Items Purchased feed and grain: $122,000 Other cash expenses: $173,000 Depreciation: 36,500 Other Revenue and Expenses Total interest expense: $21,400 Loss on machinery sale: -$800 +Income Statement for Happy Farms Revenue: Cash crop sales Change in crop inventories Market livestock sales Change in market livestock inventories Change in accounts receivable Other farm income Gross revenue Expenses: Purchased feed and grain Change in feed inventories Other cash operating expenses Adjustments: Change in accounts payable Change in accrued expenses (other than interest) Change in prepaid expenses Depreciation nse Total operating expenses Income from operations Other revenue and expenses: Total interest expense Gain or loss on sale of capital assets: Net farm income Other Information: Opportunity cost of unpaid labor and management (total): $30,000 Opportunity interest rate: 4% Average Asset Value: $1,580,000 Average Net Worth: $1,110,000 Use the income statement and the other information to answer the following questions: 1) What is the rate of return on assets (also called percent return to assets)? 2) What is the rate of return on equity (also called percent return to equity)? 3) What is the return to labor and management