STEP 2: Green Farms also had records of their income and expenses. Prepare the income statement that they would need to present to the bank. Green Farms has Cash Sales of Market Livestock & Crop which totaled $35,000 During the summer, the barn collapsed, and they received an insurance check for $5,000 They received a reimbursement check from USDA/NRCS for $8,000 The had the following expenses: Purchased feed @ $2,000 They paid wages for hired help @ $4,000 They purchased additional supplies @ $2,500 They purchased lubricants for the old tractor @ $200 They paid the farm water bill @ $300 They had depreciation expense @ $00 The incurred a loss on the sale of a tractor @ $800 Their income tax in the amount of $500 Income Statement Cash Farm Income Gross Farm Revenues Cash Farm Expenses Cash Farm Expenses Net Cash Income from Operations (A minus B) Other Losses: Income Before Taxes (C minus D) Income Tax Expense Change in Taxes Payable Total Income Tax Expense Accrual Adjusted Net Income (Loss) (C minus F) A BC D E DE F 42