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Quiz RATIOS Table1 Income statement 2009($) 2010($) Value of farm production 470622 511535 Depreciation expenses 29300 33300 interest expense 34517 29280 Tax expenses 9828 18101

Quiz RATIOS

Table1

Income statement

2009($)

2010($)

Value of farm production

470622

511535

Depreciation expenses

29300

33300

interest expense

34517

29280

Tax expenses

9828

18101

Net income from operation

93,360

12,0260

Balance sheet at the end of the year

2009

2010

Total current asset

258,642

291,775

Non- current asset

Farm total Assets

101,8342

107,0985

Current liabilities

212407

196679

Farm total liabilities

512374

480999

Farm equity

505968

589986

Write down each formula and show all your work.

  1. a. Calculate ROA for the year 2010.

b. What does this mean for this business?

  1. A. Calculate ROE for the year 2010.

b. What does this mean for this business?

  1. A. Calculate the Profit margin for the year 2010.

B. What does this mean for this business?

4. a. Calculate the Cost of farm debt for the year 2010.

  1. What does this mean for this business?

  1. a. Calculate the working capital for the year 2010.

6. a. Calculate current ratio for the year 2010.

B. What does this mean for this business?

7. a. Calculate leverage ratio for the year 2010.

B. What does this mean for this business?

8. a. Calculate Asset turnover ratio for the year 2010.

B. What does this mean for this business?

9. Calculate EBITDA from the information Table1

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