& Theme Shed 35 QUESTIONS FOR REVIEW AND FURTHER THOUGHT 1. The other the dehuequity suis increases, the debate wille W? 2. True ore? Als with a higher working capital will have a higher W? 3. Use your knowledge of halen hon valysis to the following bed dance sheet The current rutie2.0, and the duty to 10 Awes Cures ween New T O The SO Toil 4. Can a business be solvent but not liquid? Liquid but ne soon! 5. Does a balance sheet show the wal net fum income for a farm business? Why or why 6. True or falet Act liabilities Equity 7. Assume you are agricultural an officer for a bank and customer requests and on the following balance sheet Conducta ratio alysis and give your reasons for granting or denying animal loan. What is the weakest part of this customer's financial condition? Asus Current assets Noncurrent 575.000 675.000 S100.000 200.000 Lations Carremes Nosce ili Tocal Owsity Tocal liabilities plus equity 450.00 $350,000 Total assets $750,000 8. Why is there no valuation adjustment on a cost-basis balance sheet? 9. Assume that a mistake was made and the value of market livestock on a balance sheet is 510.000 higher than it should be. How does this error affect the measures of liquidity and solvency? Would results be the same if land had been overvalued by S10.0007 10. Would the following entries to a farm balance sheet he classified as amets or liabilities? As current or noncurrent a. Machine shed b. Feed bill at local food store c. A 20-year farm mortgage contract d. A 36-month certificate of deposit c. Newborn calves Box PAGE & Theme Shed 35 QUESTIONS FOR REVIEW AND FURTHER THOUGHT 1. The other the dehuequity suis increases, the debate wille W? 2. True ore? Als with a higher working capital will have a higher W? 3. Use your knowledge of halen hon valysis to the following bed dance sheet The current rutie2.0, and the duty to 10 Awes Cures ween New T O The SO Toil 4. Can a business be solvent but not liquid? Liquid but ne soon! 5. Does a balance sheet show the wal net fum income for a farm business? Why or why 6. True or falet Act liabilities Equity 7. Assume you are agricultural an officer for a bank and customer requests and on the following balance sheet Conducta ratio alysis and give your reasons for granting or denying animal loan. What is the weakest part of this customer's financial condition? Asus Current assets Noncurrent 575.000 675.000 S100.000 200.000 Lations Carremes Nosce ili Tocal Owsity Tocal liabilities plus equity 450.00 $350,000 Total assets $750,000 8. Why is there no valuation adjustment on a cost-basis balance sheet? 9. Assume that a mistake was made and the value of market livestock on a balance sheet is 510.000 higher than it should be. How does this error affect the measures of liquidity and solvency? Would results be the same if land had been overvalued by S10.0007 10. Would the following entries to a farm balance sheet he classified as amets or liabilities? As current or noncurrent a. Machine shed b. Feed bill at local food store c. A 20-year farm mortgage contract d. A 36-month certificate of deposit c. Newborn calves Box PAGE
