Question
The information is extracted from balance sheet and income statement Balance Sheet 2019 2020 ASSETS Current Assets Cash and equivalents $ 2,000 $ 1,000 Grain
The information is extracted from balance sheet and income statement
Balance Sheet 2019 2020
ASSETS Current Assets Cash and equivalents $ 2,000 $ 1,000
Grain and livestock inventory 60,000 40,000
Other current farm assets 1,000 1,000
Total current assets 63,000 42,000
Noncurrent Assets Machinery and equipment 100,000 110,000
Buildings 20,000 18,000
Land 300,000 290,000
Other noncurrent farm assets 15,000 15,000
Total noncurrent assets 435,000 433,000
Total Farm Assets $ 498,000 $ 475,000
LIABILITIES Current Liabilities Notes payable $ 15,000 $ 10,000
Accounts payable 2,000 1,000
Current portion of term debt 12,000 14,000
Other current farm liabilities 15,000 20,000
Total current liabilities 44,000 45,000
Noncurrent Liabilities Deferred portion of term debt 150,000 136,000
Total noncurrent liabilities Total Farm Liabilities 194,000 181,000
Total Net Worth 304,000 294,000
Total Liabilities and Net Worth $ 498,000 $ 475,000
INCOME STATEMENT
Value of farm production $139,190 $160,034
Non depreciation operating expenses 76,538 79,321
Depreciation 15,000 16,000
Interest expense 14,571 14,570
Net farm income from operations 33,051 50,143
OTHER INFORMATION Family living withdrawals $ 25,000 $ 25,700
Nonfarm income 0 0
Income tax expense 9,091 6,700
Other income from farm assets 0 0
Principal payments on current portions of term debt
and capital leases 12,000 14,000
Interest payments on term debt capital leases 13,500 12,240
Calculate the following:
1. Debt to Asset Ratio for 2019
. 2. Working Capital for 2020
3. Current Ratio for 2019
4. Equity to Asset Ratio for 2020
5. Leverage Ratio for 2020
6. Return on Assets for 2020
7. Return on Equity for 2020
8. Operating Profit Margin Ratio
9. Asset Turnover Ratio
10. Rate of Return on Farm Assets
Step by Step Solution
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Step: 1
Solution 1 Debt to Asset Ratio for 2019 Total Farm Liabilities Total Farm Assets 194000 498000 039 2 ...
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Horngrens Accounting
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
11th Canadian Edition Volume 2
0135359783, 978-0135359785
