Income Statement

Income Statement
Name: Twin Pines Farm		Jan 1, 2020- Dec 31, 2020
Revenue
Corn Sales		$312,000
Hog Sales		$315,000
Change in corn inventories		$24,850
	Gross revenue		$651,850
Expenses
Cash farm expenses		$407,800
Depreciation		$100,000
	Total operating expenses		$507,800
Net farm income from operations (NFIO)			[Q40]
Interest expense
Cash interest paid on current loans		$25,840
Cash interest paid on noncurrent loans		$19,160
	Total interest expense		$45,000
Capital Adjustments
Machinery (sold tractor)		$12,500
Land		$0
	Total gain or loss on sale of capital assets		$12,500
Net Farm Income (NFI)			[Q41]
Note: the unpaid labor and management expense was $50,000

			Value (3 pts)		Score (W, F, S) (1 pt)
	Net farm income ratio		[Q42]		[Q43]
	Operating profit		[Q44]
	Operating profit margin		[Q45]		[Q46]
	Rate of return on assets (ROA)		[Q47]		[Q48]
	Return on equity (ROE)		[Q49]		[Q50]
	Asset turnover ratio (ATO)		[Q51]		[Q52]

Question 40 (4 points)