Use the information below to prepare the following financial statements:

Income Statement

none none FINANCIAL SITUATION ON JANUARY 1, 2011 Cash on hand Farm $2107 Family $1,840 Buildings 22,435 (book value) 41,000 (market value) House (personal asset) 98,500 (book value) 156,000 (market value) Household goods (furniture, etc.) 76,520 (book value) 66,500 (market value) Personal liabilities 5,818 Machinery 910,580 (book value) 1,351,588 (market value) Accounts receivable 15,000 Livestock Raised breeding livestock 250 head of cows plus 48 head of replacement heifers with a base value of $550 per head and a market value of $550 per head Purchased breeding livestock including 12 bulls and 2 horses 10,965 (book value) $17,200 (market value) Mkt. Heifers (1,000 lbs.) none Mkt. Steers (1,150 lbs.) Feeder steers (850 lbs.) Crops on hand Hay 600 tons at $85/ton Malt Barley 10,000 cwt @ $6/cwt Potatoes 152,500 cwt. @ $4.45 /cwt Other Feed 350 Prepaid expenses 5,000 Supplies 1,000 Cash invested in growing crops 15,000 Mortgage on farm Principle due in 2011 15,860 Principle after 2011 634,343 Note on Machinery Principal due in 2011 25,000 Principal after 2011 275,000 Operating Loan 827,270 Accrued interest Mortgage 2,000 Machinery loan 1,130 Operating loan 7,000 Outstanding Bills 15,000 Land 650 acres purchased for $500 per acre, 350 acres purchased for $650 per acre, and 500 acres purchased for $500 peer acre. All the land has a market value of $850 per acre (Note: This does not include the value of irrigation equipment.) Accrued property tax on farm 4,032 Income tax payable on farm 39,000 Investment in cooperative 25,100 (book value and market value) There is no contributed capital. Capital that was originally contributed has since been withdrawn. The tax rate for deferred tax on current assets is 38% and 35% for deferred tax on non-current assets. There are no CCC loans, Savings, or futures and options accounts. DURING THE CALENDAR YEAR 2011 THE FOLLOWING TRANSACTIONS WERE RECORDED IN THE RECORDS OF THE FARMER (assume them to be cash transactions unless noted otherwise) Sale of calves 73 steers weighing 550 pounds sold for $84/cwt. 40 heifers weighing 500 pounds sold for $79/cwt. (note: 40 steers and 25 heifers were held over to be fed) Crops sales $2,423,025 Government Program receipts $2,500 3 aged bulls were sold for $2376 (they had a book value of $1275) 38 cull cows were sold for $17,974 5 replacement heifers were sold for $2790 Crop insurance proceeds $5000 Patronage dividends $7,500 10 feeder steers weighing 850 pounds were purchased for $75 /cwt. Feed purchases $1740 Chemicals 71,807 Custom Hire 93,152 Fertilizer 106,171 Freight and trucking 3,112 Gas, Fuel, and Oil 23,750 Insurance 28,031 Labor Hired 93,218 Equipment and Vehicle leases 0 Land Rent (Pasture) 23,400 Repairs and Maintenance 45,888 Seed 96,875 Storage and Wharehousing 75,950 Supplies Taxes (not income taxes) 16369 Utilities 27,717 Veterinary, breeding, and medicine 3,841 Other 47,014 Interest paid 84,667 Machinery was sold for $9,160 that had a book value of $0 Off-Farm income of $3,421 was received Income tax paid Farm $39,000 Personal $1,300 A new swather with a 14 ft. header was purchased for $55,000 New carpet and drapes for home 2,500 The current portion of term debt indicated on the balance sheet was paid on time. A new operating loan for $748,730 was taken out. $850,000 was paid on the operating loan. This included paying off the loan on the beginning balance sheet and paying off part of the new loan. Breeding livestock was purchased for 5,100 There was a net inflow of $1810 in personal borrowings. 331 FINANCIAL SITUATION ON DECEMBER 31, 2011 Cash on hand Farm $2,000 Family $5,300 Buildings 19,461 (book value) 41,000 (market value) House (personal asset) 98,500 (book value) 162,000 (market value) Household goods (furniture, etc.) 76,520 (book value) 64,800 (market value) Personal liabilities 6,763 Machinery 776,516 (book value) 1,261,429 (market value) Accounts receivable 20,000 Livestock Raised breeding livestock 250 head of cows plus 48 head of replacement heifers with a base value of $550 per head and a market value of $500 per head Purchased breeding livestock including 12 bulls and 2 horses 10,769 (book value) $17,000 (market value) Mkt. Heifers (1,000 lbs.) 25 head @ $85/cwt Mkt. Steers (1,150 lbs.) 40 head @ $85/cwt Feeder steers (850 lbs.) 10 head @ $75 /cwt Crops on hand Hay 755 tons at $70/ton Malt Barley 7,750 cwt @ $6.35/cwt Potatoes 155,000 cwt. @ $4.10 /cwt Other Feed 0 Prepaid expenses 45,000 Supplies 1,100 Cash invested in growing crops 7,500 Mortgage on farm Principle due in 2012 16,971 Principle after 2012 617,372 Note on Machinery Principal due in 2012 30,000 Principal after 2012 245,000 Operating Loan 726,000 Accrued interest Mortgage 1800 Machinery loan 1266 Operating loan 6200 Outstanding Bills 60,000 Land 650 acres purchased for $500 per acre, 350 acres purchased for $650 per acre, and 500 acres purchased for $500 peer acre. All the land has a market value of $900 per acre (Note: This does not include the value of irrigation equipment.) Accrued property tax on farm 4,112.5 Income tax payable on farm 39,280 Investment in cooperative 25,100 (book value and market value) There is no contributed capital. Capital that was originally contributed has since been withdrawn. The tax rate for deferred tax on current assets is 38% and 35% for deferred tax on non-current assets. There are no CCC loans, Savings, or futures and options accounts. none none FINANCIAL SITUATION ON JANUARY 1, 2011 Cash on hand Farm $2107 Family $1,840 Buildings 22,435 (book value) 41,000 (market value) House (personal asset) 98,500 (book value) 156,000 (market value) Household goods (furniture, etc.) 76,520 (book value) 66,500 (market value) Personal liabilities 5,818 Machinery 910,580 (book value) 1,351,588 (market value) Accounts receivable 15,000 Livestock Raised breeding livestock 250 head of cows plus 48 head of replacement heifers with a base value of $550 per head and a market value of $550 per head Purchased breeding livestock including 12 bulls and 2 horses 10,965 (book value) $17,200 (market value) Mkt. Heifers (1,000 lbs.) none Mkt. Steers (1,150 lbs.) Feeder steers (850 lbs.) Crops on hand Hay 600 tons at $85/ton Malt Barley 10,000 cwt @ $6/cwt Potatoes 152,500 cwt. @ $4.45 /cwt Other Feed 350 Prepaid expenses 5,000 Supplies 1,000 Cash invested in growing crops 15,000 Mortgage on farm Principle due in 2011 15,860 Principle after 2011 634,343 Note on Machinery Principal due in 2011 25,000 Principal after 2011 275,000 Operating Loan 827,270 Accrued interest Mortgage 2,000 Machinery loan 1,130 Operating loan 7,000 Outstanding Bills 15,000 Land 650 acres purchased for $500 per acre, 350 acres purchased for $650 per acre, and 500 acres purchased for $500 peer acre. All the land has a market value of $850 per acre (Note: This does not include the value of irrigation equipment.) Accrued property tax on farm 4,032 Income tax payable on farm 39,000 Investment in cooperative 25,100 (book value and market value) There is no contributed capital. Capital that was originally contributed has since been withdrawn. The tax rate for deferred tax on current assets is 38% and 35% for deferred tax on non-current assets. There are no CCC loans, Savings, or futures and options accounts. DURING THE CALENDAR YEAR 2011 THE FOLLOWING TRANSACTIONS WERE RECORDED IN THE RECORDS OF THE FARMER (assume them to be cash transactions unless noted otherwise) Sale of calves 73 steers weighing 550 pounds sold for $84/cwt. 40 heifers weighing 500 pounds sold for $79/cwt. (note: 40 steers and 25 heifers were held over to be fed) Crops sales $2,423,025 Government Program receipts $2,500 3 aged bulls were sold for $2376 (they had a book value of $1275) 38 cull cows were sold for $17,974 5 replacement heifers were sold for $2790 Crop insurance proceeds $5000 Patronage dividends $7,500 10 feeder steers weighing 850 pounds were purchased for $75 /cwt. Feed purchases $1740 Chemicals 71,807 Custom Hire 93,152 Fertilizer 106,171 Freight and trucking 3,112 Gas, Fuel, and Oil 23,750 Insurance 28,031 Labor Hired 93,218 Equipment and Vehicle leases 0 Land Rent (Pasture) 23,400 Repairs and Maintenance 45,888 Seed 96,875 Storage and Wharehousing 75,950 Supplies Taxes (not income taxes) 16369 Utilities 27,717 Veterinary, breeding, and medicine 3,841 Other 47,014 Interest paid 84,667 Machinery was sold for $9,160 that had a book value of $0 Off-Farm income of $3,421 was received Income tax paid Farm $39,000 Personal $1,300 A new swather with a 14 ft. header was purchased for $55,000 New carpet and drapes for home 2,500 The current portion of term debt indicated on the balance sheet was paid on time. A new operating loan for $748,730 was taken out. $850,000 was paid on the operating loan. This included paying off the loan on the beginning balance sheet and paying off part of the new loan. Breeding livestock was purchased for 5,100 There was a net inflow of $1810 in personal borrowings. 331 FINANCIAL SITUATION ON DECEMBER 31, 2011 Cash on hand Farm $2,000 Family $5,300 Buildings 19,461 (book value) 41,000 (market value) House (personal asset) 98,500 (book value) 162,000 (market value) Household goods (furniture, etc.) 76,520 (book value) 64,800 (market value) Personal liabilities 6,763 Machinery 776,516 (book value) 1,261,429 (market value) Accounts receivable 20,000 Livestock Raised breeding livestock 250 head of cows plus 48 head of replacement heifers with a base value of $550 per head and a market value of $500 per head Purchased breeding livestock including 12 bulls and 2 horses 10,769 (book value) $17,000 (market value) Mkt. Heifers (1,000 lbs.) 25 head @ $85/cwt Mkt. Steers (1,150 lbs.) 40 head @ $85/cwt Feeder steers (850 lbs.) 10 head @ $75 /cwt Crops on hand Hay 755 tons at $70/ton Malt Barley 7,750 cwt @ $6.35/cwt Potatoes 155,000 cwt. @ $4.10 /cwt Other Feed 0 Prepaid expenses 45,000 Supplies 1,100 Cash invested in growing crops 7,500 Mortgage on farm Principle due in 2012 16,971 Principle after 2012 617,372 Note on Machinery Principal due in 2012 30,000 Principal after 2012 245,000 Operating Loan 726,000 Accrued interest Mortgage 1800 Machinery loan 1266 Operating loan 6200 Outstanding Bills 60,000 Land 650 acres purchased for $500 per acre, 350 acres purchased for $650 per acre, and 500 acres purchased for $500 peer acre. All the land has a market value of $900 per acre (Note: This does not include the value of irrigation equipment.) Accrued property tax on farm 4,112.5 Income tax payable on farm 39,280 Investment in cooperative 25,100 (book value and market value) There is no contributed capital. Capital that was originally contributed has since been withdrawn. The tax rate for deferred tax on current assets is 38% and 35% for deferred tax on non-current assets. There are no CCC loans, Savings, or futures and options accounts