It is January 2 and the owner of Farms on the Brazos is putting together an annual net worth statement for the farming business. He has assembled the following items of information. Help him fit it all of these items together using the attached blank Net Worth statement. 1. The farm bank account has a balance of $4,250. a. C. 2. The grain inventory is as follows: Corn in storage is 44,000 bushels. Current market price is $2.25. b. They sold a 10,000-bu. futures contract for $2.45 per bushel in October. Current futures price is $2.30. They have 7,000 bu. of soybeans contracted for March delivery at $5.00 per bushel. Current soybean price is $4.50. 3. The livestock inventory is as follows: 1,200 head of 50-pound feeder pigs. Current value is $50 each. b. 800 head of pigs weighing about 150 pounds. Current market price for 250- pound market hogs is $.40 per pound ($100 per head), so value them at $75 each. 100 sows, valued at $150 each, and 8 boars worth $500 each. a. 4. They have 300 bags of purchased seed in storage for which they paid $80 per bag. 5. In November, they applied $17,000 worth of fertilizer on their cropland. 6. They also prepaid the elevator $20,000 for additional fertilizer for delivery and application in April. 7. In December, he sold 150 feeder pigs to a nephew for $8,000, to be paid when the pigs are sold in February. 8. Their other machinery and equipment have a depreciated value of $217,000 from their depreciation schedule, but they estimate its market value at $240,000. 9. The farm has several older buildings that added $50,000 to the purchase price of the farm 10 years ago. They have deducted $24,000 in depreciation expense from that purchase, so far. Their estimated market value is $30,000. 10. They own 240 acres of farmland that they purchased ten years ago for $315,000. They estimate its current value at $480,000. They also rent 500 acres of cropland for $125 per acre. 11. He owns a motorboat used for waterskiing, worth $14,500. 12. The current operating loan with Farm Credit is $87,300, with accumulated interest of $2,370. 13. They owe Crop Managers, Inc. $1,500 for taking soil samples in November. 14. They owe $60,000 to Agce Credit for their combine, at 8% interest. Their last payment was made December 1. Next December 1, they will have to pay $20,000, plus interest of $4,800. 15. 16. They owe $100,000 for purchase of the farm, at 6% annual interest. They made a payment last March 1. Their next payment will be March 1, principal of $8,000, plus interest. NET WORTH STATEMENT Name: Farms on the Brazos Date: January 2, 20 FARM ASSETS Cost Value Market Value FARM LIABILITIES Market Value Checking and Savings Accounts Accounts payable Farm taxes due Short-term notes and credit lines Accrued interest - short - intermediate - long-term Due in 12 mo. - intermediate - long-term Other Crops held for sale or feed Investment in growing crops Commercial feed on hand Prepaid expenses Market livestock Supplies on hand Accounts receivable Other-hedging gain Total Current Assets Unpaid Patronage Dividends Breeding livestock Time certificates Farm securities Other Machinery and Equipment Total Intermediate Assets Buildings/improvements Total Current Liabilities Notes and contracts, remainder Other Total Intermediate Liabilities Notes and contracts, remainder Other Total Long-term Liabilities Farmland Total Long-term Assets The answer is either right or it is wrong. There is no partial credit. 1. Total Farm Assets (cost value) 2. Total Farm Assets (market value) 3. Total Farm Liabilities (market value) 4. Current Ratio (market value) 5. Debt-to-Asset Ratio (market value) 6. Farm Net Worth (cost value) 7. Farm Net Worth (market value) It is January 2 and the owner of Farms on the Brazos is putting together an annual net worth statement for the farming business. He has assembled the following items of information. Help him fit it all of these items together using the attached blank Net Worth statement. 1. The farm bank account has a balance of $4,250. a. C. 2. The grain inventory is as follows: Corn in storage is 44,000 bushels. Current market price is $2.25. b. They sold a 10,000-bu. futures contract for $2.45 per bushel in October. Current futures price is $2.30. They have 7,000 bu. of soybeans contracted for March delivery at $5.00 per bushel. Current soybean price is $4.50. 3. The livestock inventory is as follows: 1,200 head of 50-pound feeder pigs. Current value is $50 each. b. 800 head of pigs weighing about 150 pounds. Current market price for 250- pound market hogs is $.40 per pound ($100 per head), so value them at $75 each. 100 sows, valued at $150 each, and 8 boars worth $500 each. a. 4. They have 300 bags of purchased seed in storage for which they paid $80 per bag. 5. In November, they applied $17,000 worth of fertilizer on their cropland. 6. They also prepaid the elevator $20,000 for additional fertilizer for delivery and application in April. 7. In December, he sold 150 feeder pigs to a nephew for $8,000, to be paid when the pigs are sold in February. 8. Their other machinery and equipment have a depreciated value of $217,000 from their depreciation schedule, but they estimate its market value at $240,000. 9. The farm has several older buildings that added $50,000 to the purchase price of the farm 10 years ago. They have deducted $24,000 in depreciation expense from that purchase, so far. Their estimated market value is $30,000. 10. They own 240 acres of farmland that they purchased ten years ago for $315,000. They estimate its current value at $480,000. They also rent 500 acres of cropland for $125 per acre. 11. He owns a motorboat used for waterskiing, worth $14,500. 12. The current operating loan with Farm Credit is $87,300, with accumulated interest of $2,370. 13. They owe Crop Managers, Inc. $1,500 for taking soil samples in November. 14. They owe $60,000 to Agce Credit for their combine, at 8% interest. Their last payment was made December 1. Next December 1, they will have to pay $20,000, plus interest of $4,800. 15. 16. They owe $100,000 for purchase of the farm, at 6% annual interest. They made a payment last March 1. Their next payment will be March 1, principal of $8,000, plus interest. NET WORTH STATEMENT Name: Farms on the Brazos Date: January 2, 20 FARM ASSETS Cost Value Market Value FARM LIABILITIES Market Value Checking and Savings Accounts Accounts payable Farm taxes due Short-term notes and credit lines Accrued interest - short - intermediate - long-term Due in 12 mo. - intermediate - long-term Other Crops held for sale or feed Investment in growing crops Commercial feed on hand Prepaid expenses Market livestock Supplies on hand Accounts receivable Other-hedging gain Total Current Assets Unpaid Patronage Dividends Breeding livestock Time certificates Farm securities Other Machinery and Equipment Total Intermediate Assets Buildings/improvements Total Current Liabilities Notes and contracts, remainder Other Total Intermediate Liabilities Notes and contracts, remainder Other Total Long-term Liabilities Farmland Total Long-term Assets The answer is either right or it is wrong. There is no partial credit. 1. Total Farm Assets (cost value) 2. Total Farm Assets (market value) 3. Total Farm Liabilities (market value) 4. Current Ratio (market value) 5. Debt-to-Asset Ratio (market value) 6. Farm Net Worth (cost value) 7. Farm Net Worth (market value)