The University farm had cash receipt of K200 000.00 and total cash expenses of K122 000.00 in 2019, the non-cash expenses amount to K18 000.00 and non-cash revenue of K10 000.00. Further, it had K 4 000.00 in depreciation and K2 000.00 was paid for the interest term debt.

Calculate the net farm income from operations

(a) Given that the University withdraws were K20 000.00 and taxes were K5 000.00. If the farm had K30 000.00 as debt for 2017 and of this K8 000.00 is for annual payment of long term debt and capital leases.

(b) Estimates the Net Farm Income from operations.

(c) Estimate the net cash available for the university farm in 2014.

(d) What is the term debt and capital lease coverage ratio?