It is January 2 and Twin Pines Farm is assembling their financial statements for their banker.

Following are several pieces of information they have collected.

Help them construct their income statement using the attached blank statement.

1. The farm bank account has a balance of $4,250.

2. Their grain inventory is as follows:

1. Total corn in storage is 44,000 bushels. Current market price is $2.25.
2. They sold a 10,000-bu. futures contract for $2.45 per bushel in October. Current futures price is $2.30.
3. They have 7,000 bu. of soybeans contracted for March delivery at $5.00 per bushel. Current soybean price is $4.50.

3. Their livestock inventory is as follows:

1. 1,200 head of 50-pound feeder pigs. Current value is $50 each.
2. 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.
3. 100 sows, valued at $150 each, and 8 boars worth $500 each.

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 crop land.

6. In December they prepaid the elevator $20,000 for additional fertilizer to be delivered and applied in April.

7. In December, they 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 aces of cropland for $125 per acre.

11. They own 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 AgCo 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. 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.