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Use the following financial information to calculate the capital debt repayment capacity. Income from operations $100,000 Value of unpaid labor and management $42,000 Average total

Use the following financial information to calculate the capital debt repayment capacity. Income from operations $100,000 Value of unpaid labor and management $42,000 Average total assets $850,000 Interest expense $20,000 Average total equity $600,000 Gross revenue $470,000 Current assets $250,000 Current liabilities $150,000 Total liabilities-end of year $250,000 Total assets-end of year $1,050,000 Total net worth-end of year $800,000 Total nonfarm income $30,000 Depreciation expense $60,000 Total income tax expense $22,000 Scheduled prin. and int. pay. on term loans $20,000 Total operating expenses $370,000 a. $106,000

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