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Question 1 (15 points): A farmer reports the following financial information for 2020 operation: Current assets Net worth, end of year 200,000 200,000 Depreciation....
Question 1 (15 points): A farmer reports the following financial information for 2020 operation: Current assets Net worth, end of year 200,000 200,000 Depreciation.... 20,000 Operating expenses 60,000 Ratio of total liabilities to net worth. 3 Proprietor withdrawals 50,000 Change in inventory 30,000 Capital purchases. 40,000 Operating receipts 200,000 Noncurrent assets 400,000 Current liabilities 100,000 a. Use this information to formulate an annual income statement. (7 points) b. Complete the year-end balance sheet. (6 points) Assets Current Noncurrent Liabilities & Net Worth Current Total Noncurrent Net Worth Total c. Indicate the beginning-of-year net worth. (2 points)
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