It is January 2 and Twin Pines Farm is putting together its annual net worth statement Following are a nurmher of pieces of information they have collected. Help them fit it all together using the attached blank statement. 1. The farm bank account has a balance of $4,250. 2. Their grain inventory is as follows Total com in storage is 44,000 bushels. Current market price is $2.25 They sold a 10.000 hu 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. a. b. Ther livestock inventory is as follows 1,200 head of 50-pound feeder pigs. Current value is $50 each. 800 head of pigs weighing about 150 pounds. Current market price for 250- pound market hogs is $.40 per pound (S100 per head), so value them at $75 each 100 sows, valued at $150 each, and 8 boars worth $500 each a. b. C. 4. They have 300 bags of purchased seed in storage for which they paid $80 per bag In November they applied $17,000 worth of fertilizer on their crop land. They also prepaid the elevator $20.000 for additional fertilizer to be delivered and applied in April. 6. In December they sold 150 feeder pigs to a nephew for $8,000, to be paid when the pigs are sold in February. 7. 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. 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, 9. 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. 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 15. interest. Ed NET WORTH STATEMENT Name Date 20 FARM ASSETS Cost Value Market Value FARM LIABILITIES Market Value Checking and Savngs Accounts Accounts payable Farm taxes due Short term notes and credit lines Crops held for sale or feed Accrued interest - short Investment in growing crops - intermmediate Commercial feed on hand long term Prepaid expenses Due in 12 me. - intermediate Market livestock leng tem Supplies on hand Other Accounts receivable Other Total Current Assets Total Current Liabilities Notes and contracts, remainder Unpaid Patronage Dividends Other Breeding livestock Time certificates Farm securities Other Machinery and Equipment Total Intermediate Liabilities Total Intermediate Assets Notes and contracts, remainder Buildings improsements Other Farmland Farm Securities Other Total Long term Assets Total Long term Liabilities A. Total Farmm Asets B. Total Farm Liabilities Current Assets (market) Current Liabilities C.Farm Net Worth Cast Value (AB) Current ratio D. Farm Net Worth, Market Value (A- B) Debt to asset ratio Total Liabilities Total Assets (market)