Management Tools for Controlling: The Balance Sheet Organize the following information (as of Dec 31, 2017) into a balance sheet that follows the format on the attached page (Title: Wolfpack Farms). Assume all values are on a cost basis. Balance sheet items Value Balance sheet items Value Accounts Payable $3,200 Land $552.500 Current portion of long- $75,375 Grain and Hay on hand $82,000 term debts due within the year $42,300 Operating loan due within 6 mos. $56,875 Long-term loan on machinery Feeder Livestock Breeding Livestock Accounts Receivable $31,800 Farm mortgage $201.000 $29,000 Machinery $62,000 $1,000 Checking account balance $5,600 Supplies (Inventory) $1,000 Buildings $24,600 Accrued interest $15,200 Prepaid expenses $400 1) What is the level of working capital? Show your computations. 2) What is the current ratio? Show your computations. 3) What is the debt/asset ratio? Show your computations, WOLFPACK FARMS BALANCE SHEET As of: Assets Liabilities Current Assets Current Liabilities 4) What is the equity/asset ratio? Show your computations, 5) What is the debt/equity ratio? Show your computations. Total Current Assets= Total Current Liabilities Non-current Assets Non-current Liabilities 6) Based on the ratios you computed above, what is the weakest part of the farm's financial condition? Why? Explain carefully. Total Non-current Assets Total Non-current Liabilities TOTAL LIABILITIES Owner Equity TOTAL OWNER EQUITY= TOTAL LIABILITIES AND OWNER EQUITY TOTAL ASSETS