On January 1, 2015, Sunny Citrus Company began operations, selling 10,000 shares of stock to investors for $ 20 per share, initially receiving $ 200,000 of cash.

Sunny Citrus soon entered into an arrangement with Florida Farming Company to grow oranges for Sunny Citrus. In accordance with the terms of the contract, each spring, Sunny Citrus pays Florida Farming a deposit of $ 60,000. At the time of harvest, Sunny Citrus buys oranges from Florida Farming at a price of $ 3.00 per bushel, with the $ 60,000 deposit made in the spring being deducted from the total amount owed. Sunny Citrus bears the risk of the harvest if less than 20,000 bushels are harvested, Sunny Citrus is not entitled to a refund of the initial deposit.

Sunny Citrus had the following transactions in 2015:

Mar. 1, 2015: Paid Florida Farming $ 60,000 to plant oranges.

Oct. 15, 2015: Received 50,000 bushels from Florida Farming at a time when the market price of a bushel of oranges was $ 7.00 per bushel. Sunny Citrus paid Florida Farming the remaining amount due.

Nov. 1, 2015: Delivered 30,000 bushels to a local buyer, who agreed to pay a price of $ 8.00 per bushel. One half of the amount will be collected on each of Dec. 15, 2015, and January 15, 2016.

Dec. 15, 2015: Collected the applicable amount from the buyer.

On December 31, 2015, the remaining 20,000 bushels of oranges were stored in a warehouse owned by Sunny Citrus. At that point in time, the market price of a bushel of oranges was $9.00.

Sunny Citrus Company is a member of the Florida Farmers Association, whose members have agreed to use the following definitions for financial statement reporting purposes:

Accounts Receivable: Includes only amounts owed to a firm as a result of any crop that has been delivered for which payment has not yet been received.

Inventory: Includes only crops that are recorded at acquisition cost. Any crop reported at an amount other than acquisition cost must be recorded in a different account.

Other Assets: Any amount not included in Cash, Accounts Receivable, or Inventory is included in Other Assets

Given the information provided on the previous page, please complete the following chart, with each column assuming that revenue is recorded as follows:

A. Assume that revenue is recognized at the Time of Harvest. Time of Harvest is the point in time at which oranges are received from Florida Farming (Sunny Citrus could presumably sell the oranges on the commodity market at the market price at that time.) Under this method only, subsequent to Harvest, oranges are reported at market value with any fluctuations in market value being recorded as Other Income/Loss.

B. Assume that revenue is recognized at the Time of Delivery

C. Assume that revenue is recognized at the Time of Cash Collection.

Revenue Recognized @

2015 Income Statement	(A) Time of Harvest	(B) Time of Delivery	(C) Time of cash collection
Revenue
Less: Cost of goods sold
Plus: Other Income / Other Loss
Net Income
Dec. 31, 2015 Balance Sheet
Cash
Accounts Receivable
Inventory
Other Assets