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Use the following information to calculate the requested Income Statement metrics. Net Farm Income $36,000 Opportunity Cost of Labor $16,000 Average Equity $220,000 Opportunity Cost
Use the following information to calculate the requested Income Statement metrics. |
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Net Farm Income | $36,000 |
| Opportunity Cost of Labor | $16,000 |
Average Equity | $220,000 |
| Opportunity Cost of Management | $8,000 |
Average Asset Value | $360,000 |
| Family Living Expenses | $20,000 |
Interest Expense | $11,000 |
| Income and SS taxes | $4,000 |
Total Revenue | $109,500 |
| Opportunity Cost of Capital | 10% |
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a. Rate of Return on Assets |
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b. Rate of Return on Equity |
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c. Operating Profit Margin Ratio |
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d. Change in Equity |
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e. Return to Management |
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