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Net farm income = $78,000 Average equity = $750,000 Average asset value = $1,350,000 Total Cash Expense = $243,000 Interest expense = $35,000 Gains from
Net farm income = $78,000 Average equity = $750,000 Average asset value = $1,350,000 Total Cash Expense = $243,000 Interest expense = $35,000 Gains from sales of capital assets = $16,000 Total (Gross) Revenue = $440,000 Opportunity cost of labor and management = $40,000 Opportunity cost of capital = $15,000 Family living expenses = $25,000 Assuming no accrual adjustments for accounts payable and unused supplies and no value of home consumption, find the depreciation expense. 1. Find Operating Profit Margin Ratio ((Income from operations -value of unpaid labor and management) Gross revenue) 2. Find Depreciation 3. Find Return on Equity (ROE)
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