Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ings Review View Table Design >> 0 A ' ' po 5 21 AL 1 x? Ao Av E Worksheet #5 - Income, Balance Sheets

image text in transcribed
image text in transcribed
image text in transcribed
ings Review View Table Design >> 0 A ' ' po 5 21 AL 1 x? Ao Av E Worksheet #5 - Income, Balance Sheets and Financial Ratios Worksheet due: Monday, July 27, 2020. Styles Grower Joe's Tomato Patch Joe grows fresh market tomatoes in Southwest Florida. He his tomatoes between Janurary, 1" and May 30th. He sells to local restaurants, arca farmers' market, and has an on-farm stand. Joe farms 100 acres and for simplicity, let's assume every acre is the same in overall quality. For the season ending in May 2020, Joe sold a total of 150,000 cartons (25 lbs) and received, on average $12 per carton From his records, Joe put together his cost budget for his 2020 season. Note - all costs are expressed on a per-acre basis. Non-Harvest Variable Costs ($/ac) Land-prep 200 Plastic mulch 325 Transplants 500 Fertilizer 1,500 Plant protection chemicals 1,675 Other field materials 300 Tractor & machinery operation 1,250 Labor (hourly) 450 Labor (piece-rate) 315 Interest - Operating Cap (10%) 650 Total Non-harvest Variable Cost 7,165 Non-harvest Fixed Costs ($/ar) Equipment ownership 200 Land rent 500 Overhead/Management 3,800 Worksheet 5_ IncomeBalanceRatio (27July)) References Mailings Review View Table Design in Layout Te v A A Aa v A X, X APA EE A CE Styles St P: Total non-harvest Fixed Costs 4,500 3,750 225 Harvest/Pack Costs (1,500 ctns/ac, $/ac) Pick/Pack/Haul Sell Containers Organizational fees Total Harvest Cost 1,125 150 5,250 Joe's Balance Sheet as of June 30, 2020. Assets 50,000 75,000 300,000 Cash (CA) CD (CA) Accounts receivables (CA) (1500 sto x $2/sto x 100ac) Inventory (CA Equipment & Buildings (FA) Total Assets 65,000 I 450,000 940,000 Liabilities 300,000 400,000 Accounts payable (CL) Loan balance - equipment (LL) Total Liabilities Owner Equity 700,000 Owner equity 240.000 po ' ' Aa v x Ave. Av E 21 A Styl Questions: 1. What is Joe's total revenue during 2020? 2. What was Joe's 2020 net income from the operation? 3. If the cost and production numbers say the same next year, what is Joe's break-even price to be economically sustainable. 4. Using the numbers in Joe's budget and balance sheet, calculate: a) Current Ratio b) Debt-Asset Ratio c) Return on Equity, and 1 d) Asset Turnover Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Courageous Auditing Beyond Compliance Towards Being A Catalyst For Change

Authors: Kathy Rees

1st Edition

0648958108, 978-0648958109

More Books

Students also viewed these Accounting questions

Question

Solve the equations x8x + 16 1 + x = 0

Answered: 1 week ago