Pleasant Valley Farms Jan 1, 2021 to Dec 31, 2021 Balance Sheet Beginning Ending Average $500,000 Current Assets Intermediate Assets Long-term Assets $400,000 $680,000 $4,300,000 1. $450,000 $682,500 $4,575,000 $5,707,500 $4,850,000 $6,035,000 Total Assets 2. 3. $400,000 Current Liabilities Intermediate Liabilities Long-term Liabilities $590,000 $1,550,000 $2,515,000 $425,000 $600,000 4. $1,450,000 $1,500,000 $2,495,000 Total Liabilities 5 5. Net Worth $2,865,000 $3,560,000 6. Key Information Value of unpaid labor Value of unpaid management $30,000 7. Total $80,000 Capital Asset loss ($100,000) Income Statement Revenues Acres Corn/Yield $/bu $5.00 Gross cash farm income $2,500 $190 Inventory change $40,000 Gross Revenue $2,415,000 Expenses Total cash farm expenses Interest expense Total Expenses $1,150,000 $60,000 9. Financial Analysis Liquidity 1 Ratio/Calculation Financial Status Range Cutoffs Strong 1.1 1.7 Current Ratio $450,000/ 10. 11. 12. 2 Working Capital 13. $400,000 $50,000 larger is better 3 Debt Structure $400,000/ 14. 0.160 15. Solvency 4 16. 17 18. 60 30 5 Debt to Asset Ratio Equity to Asset Ratio Debt to Equity Ratio 19. $2,495,000/ / / 20. 56.29 21. 40 70 6 22. $3,212,500 23. fair 1.5 0.43 Profitability 7 NFIO 24. 25. 26. $2,415,000 $1,205,000 8 NFI + 27. larger is better $1,105,000 45.76 9 = 29. 10 20 10 + 30. 31. larger is better NEI Ratio 28. Operating profit (OP) OPM ROA (OP/Total Assets) 33. ROE $1,205,000 $1,185,000 $2,415,000 $60,000 $2,415,000 $5,707,500 11 = 49.07 32. 15 25 / / 12 = 34. strong 4 8 $1,205,000 - 35. $3,212,500 35.02 36. 3 10 13 14 15 ATO 37. 38. 42.31 fair 30 45 ROA = OPM X ATO 49.07% 39. 40