is x+ exch =43 points Balance Sheet \& Analysis You use the calendar year for your financial records. It is January 1, 2024, and you are putting together your annual net worth statement (aka balance shet). Use the information below to develop this beginning of the year balance sheet for 2024. Use the "Chapter 4 Balance Sheet Assignment Fall 2023" on D2L. Then complete the analysis at the end of the balance sheet. You will use accrual accounting. You MUST use formulas. Not everything on here belongs in the balance sheet. Remember that current is this year, intermediate is 1-10 years (for liabilities, this woulc ngs like car loans: loans that would be paid off in the next 1-10 years), and long-term relai. d and loans relsted to land. You have $70,000 farm-related cash on hand in checking and savings. 1. Inventory of Crops and Livestock is as follows: a. Total com in storage is 15,000 bushels. Current market price is $4.50/bu. b. Total Soybeans in storage are 5,000 bushels. Current market price is $13.25 c. 31 steer calves valued at $1,800.00/ head. d. 26 heifer calves valued at $1,500.00/ head. e. 65 bred cows (worth $2,500 each) and 2 bulls (worth an average of $3,500 each). (Hint: cows and bulls are your breeding livestock) 2. Feed and supplies: a) Corn silage: 200 tons valued at $75 per ton b) Hay: 300 tons worth $175 per ton c) Corn Stalks: 100 tons at $50 each 3. Your current operating loan (due within one year) with Farm Credit is $75,000, with accrued interest of $6,500. 4. In November of 2023 , you prepaid $87,000 for corn seeds for 2024 's crops. 5. You have 500 gallons of diesel fuel on hand (currently worth $4.25/ gallon) 6. Your machinery and equipment have a depreciated book value of $675,000 from your depreciation schedule, but you estimate its market value at $925,000. 7. The farm has several buildings that have a depreciated book value of $720,000. Your estimated market value is $925,000. 8. You sold some hay to your neighbor. You're still waiting for her to pay you the $7,200 you agreed upon. 9. You own 240 acres of farmland that was purchased in bits and pieces over the years for a total of $1,800,000. Currently, land in your area is valued at $11,500/ac. 10. You own hunting cabin and a little land, worth $175,000 and a personal car worth $26,000. 11. You make some money on the side doing trucking, earning $42,000/ year. 12. On December 20th,2023, you purchased more hay for your livestock worth a total of $35,000. You will not pay for this feed until mid-January of 2024 . The hay is included in your inventory above. 13. You still owe Soil Testers, Inc. $6,000 for soil sampling. 14. Your neighbor still owes you the second of two installment payments of $6,000 for helping with 2023 's harvest. 15. The vet bill arrived in the mail today (January 1) and showed the farm's outstanding vet bill for 2023 at $3,500. 16. On your farm's credit card, you have a balance of $4,500. Your personal credit card b : a balance of $2,500. 17. You started the year with student loans totaling $36,000, but you paid off $2,000 in principal (balance remaining: $34,000 ) and $2600 in interest. To analyze the balance sheet, calculate the following: - Current Ratio, Market Value - Working Capital, Market Value - Debt to Asset Ratio, Market Value - Equity to Asset Ratio, Market Value - Debt to Equity Ratio, Market Value - Net Capital Ratio, Market Value - Debt Structure Ratio What is the strongest part of the operation (liquidity or solvency)? Explain. What is the weakest part of the operation (liquidity or solvency)? Explain. Why is it recommended that farmers use market basis even though other businesses are told to use cost basis? Explain is x+ exch =43 points Balance Sheet \& Analysis You use the calendar year for your financial records. It is January 1, 2024, and you are putting together your annual net worth statement (aka balance shet). Use the information below to develop this beginning of the year balance sheet for 2024. Use the "Chapter 4 Balance Sheet Assignment Fall 2023" on D2L. Then complete the analysis at the end of the balance sheet. You will use accrual accounting. You MUST use formulas. Not everything on here belongs in the balance sheet. Remember that current is this year, intermediate is 1-10 years (for liabilities, this woulc ngs like car loans: loans that would be paid off in the next 1-10 years), and long-term relai. d and loans relsted to land. You have $70,000 farm-related cash on hand in checking and savings. 1. Inventory of Crops and Livestock is as follows: a. Total com in storage is 15,000 bushels. Current market price is $4.50/bu. b. Total Soybeans in storage are 5,000 bushels. Current market price is $13.25 c. 31 steer calves valued at $1,800.00/ head. d. 26 heifer calves valued at $1,500.00/ head. e. 65 bred cows (worth $2,500 each) and 2 bulls (worth an average of $3,500 each). (Hint: cows and bulls are your breeding livestock) 2. Feed and supplies: a) Corn silage: 200 tons valued at $75 per ton b) Hay: 300 tons worth $175 per ton c) Corn Stalks: 100 tons at $50 each 3. Your current operating loan (due within one year) with Farm Credit is $75,000, with accrued interest of $6,500. 4. In November of 2023 , you prepaid $87,000 for corn seeds for 2024 's crops. 5. You have 500 gallons of diesel fuel on hand (currently worth $4.25/ gallon) 6. Your machinery and equipment have a depreciated book value of $675,000 from your depreciation schedule, but you estimate its market value at $925,000. 7. The farm has several buildings that have a depreciated book value of $720,000. Your estimated market value is $925,000. 8. You sold some hay to your neighbor. You're still waiting for her to pay you the $7,200 you agreed upon. 9. You own 240 acres of farmland that was purchased in bits and pieces over the years for a total of $1,800,000. Currently, land in your area is valued at $11,500/ac. 10. You own hunting cabin and a little land, worth $175,000 and a personal car worth $26,000. 11. You make some money on the side doing trucking, earning $42,000/ year. 12. On December 20th,2023, you purchased more hay for your livestock worth a total of $35,000. You will not pay for this feed until mid-January of 2024 . The hay is included in your inventory above. 13. You still owe Soil Testers, Inc. $6,000 for soil sampling. 14. Your neighbor still owes you the second of two installment payments of $6,000 for helping with 2023 's harvest. 15. The vet bill arrived in the mail today (January 1) and showed the farm's outstanding vet bill for 2023 at $3,500. 16. On your farm's credit card, you have a balance of $4,500. Your personal credit card b : a balance of $2,500. 17. You started the year with student loans totaling $36,000, but you paid off $2,000 in principal (balance remaining: $34,000 ) and $2600 in interest. To analyze the balance sheet, calculate the following: - Current Ratio, Market Value - Working Capital, Market Value - Debt to Asset Ratio, Market Value - Equity to Asset Ratio, Market Value - Debt to Equity Ratio, Market Value - Net Capital Ratio, Market Value - Debt Structure Ratio What is the strongest part of the operation (liquidity or solvency)? Explain. What is the weakest part of the operation (liquidity or solvency)? Explain. Why is it recommended that farmers use market basis even though other businesses are told to use cost basis? Explain