Table 4-4 Balance Sheet for I.M. Farmer, December 31, 2012 Assets Liabilities Line Current Assets 1 Cash/checking Cost Market Line 7,000 7,000 Current Liabilities 19 Accounts Payable Cost Market 3,500 3.500 2 Marketable Securities 1,350 3,000 20 Notes Payable within 1 year 6,000 6,000 Inventories 21 Current Portion of term debt 22,250 22.250 3 4 Crops 40,640 40,640 22 Accrued interest 12,3001 12,300 Livestock 22,400 22,400 23 Income taxes payable 2,300 2,300 5 Supplies 860 560 24 Other accrued expenses 1,800 1,800 6 Account Receivable 3,570 3,570 25 Current Portion of deferred taxes 13,698 13,946 7 Prepaid Expenses 7801 780 26 Total current 61,848 62,096 8 Investment in growing crops 5,000 5,000 9 Other current assets 2,500 2,500 Non Current Liabilities 10 Total Current Assets 84,100 85,750 Notes Payable 27 Machinery 18,000 18.000 Non Current Assets 28 Breeding Livestock 11 Machines and Equipment 108,000 120,000 29 Real estate debt 177,500 177,500 12 Breeding Livestock (Purchased) 8,550 9,000 13. Breeding Livestock (Raised) 113,400 144,000 30 non current portion of deferred taxes 31 Total Non Current Liabilities 17,010 74.318 212,510 269,818 14 Buildings and improvements 15 Land 56,000 80,000 315,000 630,000 32 Total Liabilities (D) 274,358 331,914 16 Other 17 Total Non Current Assets 18 Total Assets (A) 600,950 983,000 Owner Equity Cost Market 685,050 1,068,750 33 Contributed Capital 34 Retained Earnings 160,000 160,000 35 Valuation Adjustment 36 Total Equity (E) 250,692 250,692 326,144 410,692 736,836 37 Total Liabilities Total Equity 685,050 1,068,750 A. Calculate the following: 1. Current ratio (current asset value + current liability value) 2. Working capital (current assets-current liabilities) 3. Debt/Asset Ratio (total liabilities + total assets) 4. Equity/Asset Ratio (total equity + total assets) 5. Debt/Equity Ratio (total liabilities total equity) 6. Debt Structure Ratio (current liabilities + total liabilities) B. What do each of the ratios tell us about L.M. Farmer's firm? 1. 2. 3. 4. 5. 6. 2 of 2 C. Complete a summary of LM. Farmer's financial condition (you've already calculated some of these) (Note: Gross revenue can't be determined from the balance sheet. IMFarmer's revenue is $406,548) Measure Liquidity Current ratio Working capital Working capital to gross revenues Solvency Debt/Asset ratio Equity/Asset ratio Debt/Equity ratio Other Debt structure ratio Market basis Convert your page of answers to a pdf file and submit via canvas. Page 5 of 5