Jake has been operating his farm, State Farm, traditionally since April 2017 At the end of March 2019, he had the following financial data Description Value Building Farm house 180,000 Cash 1,969 Long Term Debt (bonds, due in 20 years) 181,300 Accounts Receivable (due within the year) 1,490 Land 140,000 Retained Earnings 15,200 Equipment 49,316 Accumulated Depreciation Equipment 1,000 Bank Loan ($10,000 payable each year, with the first $10,000 due March 2020) 50,000 Jake State, Capital 128,475 Inventory Seeds 3,200 Throughout the 2019 20 fiscal year (April 1 2019 March 31 2020), Jake experienced the following events He collected the outstanding Accounts Receivables of $1,490 in cash He used up all his seed inventory, which he used to plant fruits and vegetables and then sell to a combination of Farmer's Market customers and restaurant clients From these sales, he earned $50,000, of which $45,000 was cash and $5,000 was accounts receivable Jake had an additional $500 worth of equipment depreciation expense this year As a result of his net income this year, retained earnings increased by $46,300 To get ready for next year, Jake purchased another $5,000 of seed inventory using cash At the end of the year, he decided to pay off his entire outstanding bank loan He used some of the Farm's cash for the transaction and paid the rest with his own money His outstanding bank loan amounts (current and long term) are now $0 Total assets at the end of the 2020 fiscal year equal $391,275 Please answer the following questions Prepare a balance sheet for Jakes Fiscal 2019 (year ended March 2019) Ensure you categorize your accounts into Current Assets, Long Term Assets, Current Liabilities, Long Term Liabilities, and Owners Equity Using the above events, prepare an updated balance sheet for Jakes Fiscal 2020 (year ended March 2020) Hint to make your balance sheet balance, you will need to calculate the additional amount of capital Jake contributed to the business to pay off the bank loan, as well as what portion of that payment was paid with the Farms cash Jake has decided to invest in a new fixed asset a digital platform for online selling and online delivery His organic, locally grown fresh food is in high demand among both customers and restaurants, and this will help him manage his customers and accounts receivables better The new system will cost him an up front payment of $20,000, so he has decided to take out a short term loan with his bank Comment on Jakes overall financial position if he proceeds with this transaction and use ratio analysis to support your answer Consider Jakes current business process and industry Should Jake consider alternative means of financing this new system Explain why or why not

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Jake has been operating his farm, State Farm, traditionally since April 2017. At the end of March 2019, he had the following financial data: Description

Jake has been operating his farm, State Farm, traditionally since April 2017. At the end of March 2019, he had the following financial data:

Description	Value
Building - Farm house	180,000
Cash	1,969
Long Term Debt (bonds, due in 20 years)	181,300
Accounts Receivable (due within the year)	1,490
Land	140,000
Retained Earnings	15,200
Equipment	49,316
Accumulated Depreciation Equipment	1,000
Bank Loan ($10,000 payable each year, with the first $10,000 due March 2020)	50,000
Jake State, Capital	128,475
Inventory - Seeds	3,200

Throughout the 2019-20 fiscal year (April 1 2019 March 31 2020), Jake experienced the following events:

He collected the outstanding Accounts Receivables of $1,490 in cash.
He used up all his seed inventory, which he used to plant fruits and vegetables and then

sell to a combination of Farmer's Market customers and restaurant clients.
From these sales, he earned $50,000, of which $45,000 was cash and $5,000 was

accounts receivable.
Jake had an additional $500 worth of equipment depreciation expense this year.
As a result of his net income this year, retained earnings increased by $46,300.
To get ready for next year, Jake purchased another $5,000 of seed inventory using cash.
At the end of the year, he decided to pay off his entire outstanding bank loan. He used

some of the Farm's cash for the transaction and paid the rest with his own money. His

outstanding bank loan amounts (current and long-term) are now $0.
Total assets at the end of the 2020 fiscal year equal $391,275.

Please answer the following questions.

Prepare a balance sheet for Jakes Fiscal 2019 (year ended March 2019). Ensure you categorize your accounts into Current Assets, Long-Term Assets, Current Liabilities, Long- Term Liabilities, and Owners Equity.
Using the above events, prepare an updated balance sheet for Jakes Fiscal 2020 (year ended March 2020). Hint: to make your balance sheet balance, you will need to calculate the additional amount of capital Jake contributed to the business to pay off the bank loan, as well as what portion of that payment was paid with the Farms cash.
Jake has decided to invest in a new fixed asset a digital platform for online selling and online delivery. His organic, locally grown fresh food is in high demand among both customers and restaurants, and this will help him manage his customers and accounts receivables better. The new system will cost him an up-front payment of $20,000, so he has decided to take out a short-term loan with his bank.

Comment on Jakes overall financial position if he proceeds with this transaction and use ratio analysis to support your answer. Consider Jakes current business process and industry. Should Jake consider alternative means of financing this new system? Explain why or why not.