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Question 1. Use the following data from Farm X to calculate the profitability and efficiency measures listed below and answer the related questions in sentences:

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Question 1. Use the following data from Farm X to calculate the profitability and efficiency measures listed below and answer the related questions in sentences: GrossrevenueNetfarmincomeInterestexpense$185,000$48,000$18,000 Opportunity cost of unpaid labor and management $31,000 a) Rate of return on assets = % b) Rate of return on equity = % c) Based on your calculation of a) and b), ROA is (greater than, less than, or equal to) ROE. What information does this relationship tell you? Should Farm X borrow more capital to increase its ROE? d) Asset turnover ratio = e) Operating profit margin ratio =

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