Income Statement December 31, 2022 Revenue: Cash crop sales Cash livestock sales Inventory changes: Crops Market livestock Livestock product sales Government program payments Gain/loss from sale of culled breeding stock Change in accounts receivable Other farm income Total revenue $189,600 91,660 (7.410) 12,900 8,890 7,600 4,700 $307,940 Expenses: Purchased feed and grain 21.200 Purchased market livestock 46,500 Other cash operating expenses: Fertilizer expense 9,400 Chemical expense 9,780 Seed purchased 6,410 Livestock expenses 4,800 Fuel, ol 5,800 Labor 22,600 Repairs, maintenance 12.100 Property taxes 3,400 Insurance 3,800 Supplies 4,800 Misc. expenses 5,800 Adjustments Accounts payable 1,400 Depreciation 28,900 Total operating expenses 186,690 Cash interest paid 33,400 Change in interest payable (2.400) Total interest expense 31,000 Total expenses 217,690 Net farm income from operations 90,250 Gain/loss on sale of capital assets Machinery 11,100 Land 0 Total 11.100 Net farm income $101,350 Assume I.M. Farmer has an accounting period running from January 1 to December 31. Use the following income statement information for the calendar year 2022 to complete the calculations on the last page. Analysis of Income Statement ( SHOW WORK WHERE NEEDED) 1. What was Net Farm Income from Operations? 2. What was Net Farm Income? 3. Compute Return to Management: 4. Compute Return to Labor: 5. (%) 6. 7. 8. 9. Compute Return on Assets: % What is Return on Equity (in %)? % What is the Operating Profit Margin Ratio? % Compute the Asset Turnover Ratio which is Total Revenue divided by Total Assets. What is the value and how do you interpret it? How much did I.M. Farmer's equity increase or decrease during 2007? S 10. What was I.M.'s equity on January 1, 2007? S 11. Value of Farm Production is a concept defined as Total Revenue minus livestock purchased minus feed purchased. What was I.M's Value of Farm Production for 2007? What does Value of Farm Production Measure? 12. 3 of 4