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Problem #2 Use the following information to calculate the requested Income Statement metrics. Net Farm Income $36,000 Opportunity Cost of Labor Average Equity $220,000 Opportunity
Problem #2 Use the following information to calculate the requested Income Statement metrics. Net Farm Income $36,000 Opportunity Cost of Labor Average Equity $220,000 Opportunity Cost of Management Average Asset Value $360,000 Family Living Expenses Interest Expense $11,000 Income and SS taxes Total Revenue $109,500 Opportunity Cost of Capital a. Rate of Return on Assets b. Rate of Return on Equity c. Operating Profit Margin Ratio d. Change in Equity e. Return to Management $16,000 $8,000 $20,000 $4,000 10%
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