Use the PDF file Billy's Beef Farm Balance Sheets and the Schedule F for Billy's Beef Farm that are on Canvas to complete this assignment. The balante sheets are on a cost basis. You will also need to the information provided in these instructions to complete the assignment. Complete the assignment in Excel. Your assignment needs to be well-organized. There are 20 points for organization. Additional information for 2018 Item Amount Paid income and social security taxes $5,061 Purchased farm land S171,348 Nonfarm Income $45,983 Withdrew cash for living expenses $50,293 Took out new loans $542,966 Repaid principal on loans S365,587 1. Enter the beginning and ending balances sheets on separate sheets in a new Excel file. 2. Complete a cash income statement for Billy's Beef Farm for January 1 through December 31, 2018. You have no gains/losses on capital sales in 2018. If there is a difference between the actual amount and taxable amount on the schedule F, use the actual amount. (20 points) 3. Complete an accrual income statement for Billy's Beef Farm for January 1 through December 31, 2018. You have no gains/losses on capital sales in 2018. If there is a difference between the actual amount and taxable amount on the Schedule F. use the actual amount Why is NFIO different between the cash income statement and accrual income statement? Which income statement gives a better picture of profit in 20187 Why? (20 points) 4. Generate a Statement of Cash Flow for Billy's Beef Fam for 2018. (20 points) 5. Generate a Statement of Owner Equity for Billy's Beef Farm for 2018. (20 points) DFoo e Balance Sheet for Billy's Farm December 31, 2017 Current Assets Current Liabilities Cash and checking balance 23,445 Accrued interest $ 12,439 Prepaid expenses & supplies 33,179 Accounts payable $ 15,285 Accounts receivable 16,308 Current notes 221,012 44,217 Hedging account Crop inventory held for feed or sale Market livestock held for salo $ 3,523 Principal due on term debt $ $ 219,689 165,232 Total Current Assets 461,376 Total current liabilities $ 292,953 Intermediate Assets Total intermediate liabilities $ 121,037 Breeding livestock 152,312 Machinery and equipment 336,406 Titled vehicles S 37,558 Other intemmediate assets S Total intermediate farm assets 29,266 $ 555,542 Total long term liabilities $ 323,912 Long Term Assets Total liabilities Earm land Buildings and improvements Other long-temrm assets I 737,902 511,728 115,969 Total equity $ 934,099 27,386 655,083 Total Long Term Assets $ Total Farm Assets $ Total Liabilities & Equity 1,672,001 $ 1,672,001 Balance Sheet for Billy's Beef Farm December 31, 2018 Current Liabilities Current Assets 16,907 27,299 Accrued interest Cash and checking balance 14,182 303,982 37,950 Accounts payable Prepaid expenses & supplies 29,951 Current notes Accounts receivable 54,507 Hedging account Crop inventory held for feed or sale 3,938 Principal due on term debt 292,834 389,578 Total current liabilities $ 180,658 Market livestock held for sale $ 572,630 Total Current Assets 154,254 $ Total intermediate liabilities Intermediate Assets Breeding livestock 142,013 300,284 Machinery and equipment 44,689 30,913 $ 517,899 Titled vehicles Total long term liabilities Other intermediale assets 422,635 Total intermediate farm assets Total liabilities $ 966,467 Long Term Assets 683,076 Earm land Total equity $ 945,008 Buildings and improvements Other long term assets 112,336 25,534 $ 820,946 Total Long Term Assets Total Liabilities & Equity $1,911,475 Total Farm Assets $1,911,475 E Did you 'materially participate in the operation of this business during 2018? if No.,' see instructions for limit on passive losses F Did you make any payments in 2018 that would require you to file Form(s) 1099 (see instructions)? G IfYes, did you or will you file required Forms 1099 Part Yes No Yes No Yes No Farm Income-Cash Method. Complete Parts I and II (Accrual method. Complete Parts Il and IlI, and Part I, line 9.) Sales of livestock and other resale items (see instnuctions) Cost or other basis of livestock or ofther items reported on line 1a c Subtract line 1b from line 1a Sales of livestock, produce, grains, and ofther products you raised Ja Cooperative distributions (Form(s) 1099-PATR) Agricultural program payments (see instructions) 5a Commodity Credit Corporation (CCC) loans reported under electicn b CCC loans forfeited Crop insurance proceeds and federal crop disaster payments (see instructions) Amount receivedin 2018 218183 89501 1a 1a be 1b 1c 128682 266707 3333 34527 3a 3b 3333 3b Taxable amount 4a 4a 4b Taxable amount 4b 24527 5a 5c Taxable amount 5c 5b 6 a I election to defer to 2019 is attached, check here Custom hire (machine work) income Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) Gross income. Add amounts in the right column (ines 1c,, 2, 3b, 4b, 5a, 5c, 6b, 6d, 7, and 8) If you use the accrual method, enter the amount from Part IlIl, line 50, See instructions 18335 18335 6a 6b 6b Taxable amount 6d 6d Amount deferred from 2017 7 7 13871 8 21104 8 476559 9 Part I Farm Expenses-Cash and Accrual Method. Do not include personal or living expenses. See instructions Car and truck expenses (see instructions). Aso aftach Form 4562 Chemicals Conserveson expesses (4 nstrucians) Custom hire (machine work) 10 Pension and profit-sharing plans 24Rent or lease (see instructions) a Vehicles, machinery, equipment b Other (land, animals, etc) 23 23 10 11 11 31740 24a 5066 12 12 24b 75031 13 16320 13 25 Repairs and maintenance 25 43626 14 Depreciation and section 179 expense (see instructions) Employee benefit programs other than on line 23 26 Seeds and plants Storage and warehousing Supplies 26 51187 14 44966 27 27 1951 3518 15 28 28 15 29 Taxes 29 7172 16 Feed Fertilizers and ime. 16 38121 54105 30 Usinies 30 8141 17 17 31 Veterinary, breeding, and medicine Other expenses (specily) 31 9203 18 Freight and trucking Gasoline, fuel, and oil Insurance (other than health) Interest (see instructions) Mortgage (paid to banks, etc) b 18 1825 32 19 27581 24666 19 Marketing Does and Professional Fees c Miscellaneous d Consultants a 32a 2483 414 13010 700 20 20 b 32b 21 32c 34221 21a a 32d Other 21b 4251 e 32e Labor hired (ess empleyment creddits Total expenses. Add lines 10 theough 321 If line 321 is negative, see instructions. Net farm profit or (loss). Suteract line 33 from line 9 a proft, stop here and see instructions for where to reportfa loss, complete lines 35 and 36. Reserved for future une Check the box that describes youar investmerd in this activity and see instructions for where to report your loss a All investment is at risk 22 22 21300 32 33 33 524331 34 34 35 36 b Some investment is not al risk For Paperwork Reduction Act Notice, see the separate instructions Cal No 1134GH Schedule F (Fom 1040) 2010 Use the PDF file Billy's Beef Farm Balance Sheets and the Schedule F for Billy's Beef Farm that are on Canvas to complete this assignment. The balante sheets are on a cost basis. You will also need to the information provided in these instructions to complete the assignment. Complete the assignment in Excel. Your assignment needs to be well-organized. There are 20 points for organization. Additional information for 2018 Item Amount Paid income and social security taxes $5,061 Purchased farm land S171,348 Nonfarm Income $45,983 Withdrew cash for living expenses $50,293 Took out new loans $542,966 Repaid principal on loans S365,587 1. Enter the beginning and ending balances sheets on separate sheets in a new Excel file. 2. Complete a cash income statement for Billy's Beef Farm for January 1 through December 31, 2018. You have no gains/losses on capital sales in 2018. If there is a difference between the actual amount and taxable amount on the schedule F, use the actual amount. (20 points) 3. Complete an accrual income statement for Billy's Beef Farm for January 1 through December 31, 2018. You have no gains/losses on capital sales in 2018. If there is a difference between the actual amount and taxable amount on the Schedule F. use the actual amount Why is NFIO different between the cash income statement and accrual income statement? Which income statement gives a better picture of profit in 20187 Why? (20 points) 4. Generate a Statement of Cash Flow for Billy's Beef Fam for 2018. (20 points) 5. Generate a Statement of Owner Equity for Billy's Beef Farm for 2018. (20 points) DFoo e Balance Sheet for Billy's Farm December 31, 2017 Current Assets Current Liabilities Cash and checking balance 23,445 Accrued interest $ 12,439 Prepaid expenses & supplies 33,179 Accounts payable $ 15,285 Accounts receivable 16,308 Current notes 221,012 44,217 Hedging account Crop inventory held for feed or sale Market livestock held for salo $ 3,523 Principal due on term debt $ $ 219,689 165,232 Total Current Assets 461,376 Total current liabilities $ 292,953 Intermediate Assets Total intermediate liabilities $ 121,037 Breeding livestock 152,312 Machinery and equipment 336,406 Titled vehicles S 37,558 Other intemmediate assets S Total intermediate farm assets 29,266 $ 555,542 Total long term liabilities $ 323,912 Long Term Assets Total liabilities Earm land Buildings and improvements Other long-temrm assets I 737,902 511,728 115,969 Total equity $ 934,099 27,386 655,083 Total Long Term Assets $ Total Farm Assets $ Total Liabilities & Equity 1,672,001 $ 1,672,001 Balance Sheet for Billy's Beef Farm December 31, 2018 Current Liabilities Current Assets 16,907 27,299 Accrued interest Cash and checking balance 14,182 303,982 37,950 Accounts payable Prepaid expenses & supplies 29,951 Current notes Accounts receivable 54,507 Hedging account Crop inventory held for feed or sale 3,938 Principal due on term debt 292,834 389,578 Total current liabilities $ 180,658 Market livestock held for sale $ 572,630 Total Current Assets 154,254 $ Total intermediate liabilities Intermediate Assets Breeding livestock 142,013 300,284 Machinery and equipment 44,689 30,913 $ 517,899 Titled vehicles Total long term liabilities Other intermediale assets 422,635 Total intermediate farm assets Total liabilities $ 966,467 Long Term Assets 683,076 Earm land Total equity $ 945,008 Buildings and improvements Other long term assets 112,336 25,534 $ 820,946 Total Long Term Assets Total Liabilities & Equity $1,911,475 Total Farm Assets $1,911,475 E Did you 'materially participate in the operation of this business during 2018? if No.,' see instructions for limit on passive losses F Did you make any payments in 2018 that would require you to file Form(s) 1099 (see instructions)? G IfYes, did you or will you file required Forms 1099 Part Yes No Yes No Yes No Farm Income-Cash Method. Complete Parts I and II (Accrual method. Complete Parts Il and IlI, and Part I, line 9.) Sales of livestock and other resale items (see instnuctions) Cost or other basis of livestock or ofther items reported on line 1a c Subtract line 1b from line 1a Sales of livestock, produce, grains, and ofther products you raised Ja Cooperative distributions (Form(s) 1099-PATR) Agricultural program payments (see instructions) 5a Commodity Credit Corporation (CCC) loans reported under electicn b CCC loans forfeited Crop insurance proceeds and federal crop disaster payments (see instructions) Amount receivedin 2018 218183 89501 1a 1a be 1b 1c 128682 266707 3333 34527 3a 3b 3333 3b Taxable amount 4a 4a 4b Taxable amount 4b 24527 5a 5c Taxable amount 5c 5b 6 a I election to defer to 2019 is attached, check here Custom hire (machine work) income Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) Gross income. Add amounts in the right column (ines 1c,, 2, 3b, 4b, 5a, 5c, 6b, 6d, 7, and 8) If you use the accrual method, enter the amount from Part IlIl, line 50, See instructions 18335 18335 6a 6b 6b Taxable amount 6d 6d Amount deferred from 2017 7 7 13871 8 21104 8 476559 9 Part I Farm Expenses-Cash and Accrual Method. Do not include personal or living expenses. See instructions Car and truck expenses (see instructions). Aso aftach Form 4562 Chemicals Conserveson expesses (4 nstrucians) Custom hire (machine work) 10 Pension and profit-sharing plans 24Rent or lease (see instructions) a Vehicles, machinery, equipment b Other (land, animals, etc) 23 23 10 11 11 31740 24a 5066 12 12 24b 75031 13 16320 13 25 Repairs and maintenance 25 43626 14 Depreciation and section 179 expense (see instructions) Employee benefit programs other than on line 23 26 Seeds and plants Storage and warehousing Supplies 26 51187 14 44966 27 27 1951 3518 15 28 28 15 29 Taxes 29 7172 16 Feed Fertilizers and ime. 16 38121 54105 30 Usinies 30 8141 17 17 31 Veterinary, breeding, and medicine Other expenses (specily) 31 9203 18 Freight and trucking Gasoline, fuel, and oil Insurance (other than health) Interest (see instructions) Mortgage (paid to banks, etc) b 18 1825 32 19 27581 24666 19 Marketing Does and Professional Fees c Miscellaneous d Consultants a 32a 2483 414 13010 700 20 20 b 32b 21 32c 34221 21a a 32d Other 21b 4251 e 32e Labor hired (ess empleyment creddits Total expenses. Add lines 10 theough 321 If line 321 is negative, see instructions. Net farm profit or (loss). Suteract line 33 from line 9 a proft, stop here and see instructions for where to reportfa loss, complete lines 35 and 36. Reserved for future une Check the box that describes youar investmerd in this activity and see instructions for where to report your loss a All investment is at risk 22 22 21300 32 33 33 524331 34 34 35 36 b Some investment is not al risk For Paperwork Reduction Act Notice, see the separate instructions Cal No 1134GH Schedule F (Fom 1040) 2010