Jan1 Dec 31 Financial Ratios Liquidity Ratios Current Ratio Quick Ratiol Working Capital Working Capital Ratio Solvency Ratios Debt to Asset Ratio Equity to Asset Ratio Debt to Equity Ratio 1.103 -1.401 $26,900 0.026 0.980 -1.220 -$7,7001 -0.008 0.333 0.440 0.785 0.584 0.416 1.713 Buildings 1-Jan-20 31-Dec-20 Investment in Growing Crops $150,000 $135,000 Accounts Payable $70,000 $120,000 Breeding Livestock $45,000 $55,000 Noncurrent portion: Notes Payable $120,000 $150,000 Land $550,000 $520,000 Taxes Payable $5,600 $7,700 Market Livestock $29,000 $119,000 Current Portion: Deferred Taxes $19,000 $39,000 Current Portion of Term Debt $38,000 $85,000 $69,000 $95,000 Noncurrent portion: Deferred Taxes $70,000 $85,000 Retained Earnings $287,700 $337,700 Contributed Capital $53,660 $23,850 Fertilizer and Supplies $1,000 $40,000 Accounts Receivable $1,500 $1,500 Investments in Cooperatives $2,000 $2,000 Cash $37,000 $58,000 Noncurrent portion: Real Estate Debt $195,000 $130,000 Crops held for Sale and Feed $50,000 $15,000 Accrued Interest $12,000 $18,000 Notes due within one year $67,000 $97,000 Marketable Securities $20,000 $15,500 Machinery and Equipment $200,000 $240,000 Accrued Expenses $50,000 $25,000 Valuation Equity $166,540 $177,750 Quesiont 1.2. Based on your calculations above, discuss the famer's liquidity and solvency position in detials (a paragaph of about 5-6 sentences). (Hint: make sure to use Dr. Khol's Benchmarks in your discussion). Answer 1.2. Jan1 Dec 31 Financial Ratios Liquidity Ratios Current Ratio Quick Ratiol Working Capital Working Capital Ratio Solvency Ratios Debt to Asset Ratio Equity to Asset Ratio Debt to Equity Ratio 1.103 -1.401 $26,900 0.026 0.980 -1.220 -$7,7001 -0.008 0.333 0.440 0.785 0.584 0.416 1.713 Buildings 1-Jan-20 31-Dec-20 Investment in Growing Crops $150,000 $135,000 Accounts Payable $70,000 $120,000 Breeding Livestock $45,000 $55,000 Noncurrent portion: Notes Payable $120,000 $150,000 Land $550,000 $520,000 Taxes Payable $5,600 $7,700 Market Livestock $29,000 $119,000 Current Portion: Deferred Taxes $19,000 $39,000 Current Portion of Term Debt $38,000 $85,000 $69,000 $95,000 Noncurrent portion: Deferred Taxes $70,000 $85,000 Retained Earnings $287,700 $337,700 Contributed Capital $53,660 $23,850 Fertilizer and Supplies $1,000 $40,000 Accounts Receivable $1,500 $1,500 Investments in Cooperatives $2,000 $2,000 Cash $37,000 $58,000 Noncurrent portion: Real Estate Debt $195,000 $130,000 Crops held for Sale and Feed $50,000 $15,000 Accrued Interest $12,000 $18,000 Notes due within one year $67,000 $97,000 Marketable Securities $20,000 $15,500 Machinery and Equipment $200,000 $240,000 Accrued Expenses $50,000 $25,000 Valuation Equity $166,540 $177,750 Quesiont 1.2. Based on your calculations above, discuss the famer's liquidity and solvency position in detials (a paragaph of about 5-6 sentences). (Hint: make sure to use Dr. Khol's Benchmarks in your discussion). Answer 1.2
