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 balance 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 Paid income and social security taxes Purchased farm land Nonfarm Income Withdrew cash for living expenses Took out new loans Repaid principal on loans Amount $5,061 $171 348 $45,983 $50,293 $542,966 $365,587 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 2018? Why? (20 points) 4. Generate a Statement of Cash Flow for Billy's Beef Farm for 2018. (20 points) 5. Generate a Statement of Owner Equity for Billy's Beef Farm for 2018. (20 points) 6. Assess Billy's Beef Farm's profitability and capital efficiency for 2018. Use an opportunity cost of labor and management of $60,000. (20 points) 340 words EX 2 Balance Sheet for Billy's Farm December 31, 2017 Current Assets Cash and checking balance Prepaid expenses & supplies Accounts receivable Hedging account Crop inventory held for feed or sale Market livestock held for sale Total Current Assets 23,445 33,179 16,308 3,523 219,689 165,232 461,376 Current Liabilities Accrued interest Accounts payable Current notes Principal due on term debt 12,439 15 285 221,012 44,217 $ Total current liabilities $ 292,953 Total intermediate liabilities $ 121,037 Intermediate Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets $ 152,312 336.406 37.558 29.266 555,542 Total long term liabilities $ 323,912 Total liabilities 737,902 Long Term Assets Farm land Buildings and improvements Other long-term assets Total Long Term Assets $ Total equity $ 934,099 511,728 115,969 27.386 655,083 Total Farm Assets $ 1,672,001 Total Liabilities & Equity $ 1,672,001 Balance Sheet for Billy's Beef Farm December 31, 2018 Current Assets Cash and checking balance Prepaid expenses & Supplies Accounts receivable Hedging account Crop inventory held for feed or sale Market livestock held for sale Total Current Assets Current Liabilities 27.299 Accrued interest 37.950 Accounts payable 29,951 Current notes 3,938 Pnncipal due on term debt 292,834 180,658 Total current liabilities $ $ 572,630 Total intermediate liabilities $ 15,907 14,182 303.982 54,507 389,578 154,254 142,013 300,284 Intermediate Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets 44,689 30,913 517.899 Total long term liabilities $ 422,635 $ Total liabilities $ 966,467 Total equity $ 945,000 Long Term Assets Earm land Buildings and improvements Other long-term assets Total Long Term Assets 683,076 112,336 25,534 820,946 $ Total Liabilities & Equity $ 1,911,475 $ 1,911,475 Total Farm Assets (Fom 1040) Profit or Loss Erom Farming OMS Attach to form 1040, Form 1040NA, Form 1041, or Form 1065. 2018 Go to www .gow Schedule for instructions and the latest information Sene14 Name of propre Social Security number Farmer A P C crep or activity Bunter code from Part IV C Accounting method DEmployemberNet Beel III Cash Accrual IIIIIII E Did you material participate in the operation of this business during 2018? No see instructions foemi on passive losses Yes No F Did you make any payments in 2018 that would require you to file Forms) 1099 (see instructions D Yes No Yes did you or will you required Forms 10992 Yes No Part F arm Income Cash Method. Complete Parts and Accrual method Complete Parts II and II and Part I line 9) 18 Sales of livestock and other resale items (see instructional ta b Cost or other basis of livestock or other items reported on line 1a 1b Subtract line lb trom line 1 128682 2 Sales of livestock produce, grains, and other products you raised 3a Cooperative distributions (Forms) 1099-RATRI 3a 3333 3 b Taxable amount 4a Agricultural program payments (see instructions). 4a 34527 4 Taxable amount 5 Commodity Credit Corporation (CCC) loans reported under election CCC loans forfeited . - 5b 5c Tarable amount 6 Crop Insurance proceeds and federal crop disaster payments (see instructions) # Amount received in 2018_ - 6a 18335 6 b Taxable amount c ielection to defer to 2019 is attached check here sd Amount deferred from 2017 7 Custom hire machine work) income 13671 1 Other income, including federal and state gasoline or fuel tax credit or refund (see Instructions) 21104 9 Gross income. Add amounts in the right column lines 1c, 2, 3, 4b Sa, 5, 66, 60, 7, and 8). If you use the accrual method, enter the amount from Part III line 50 See instneclions 47855 Part II Farm Expenses Cash and Accrual Method. Do not include personal or living expenses. See Instructions 10 Car and truck expenses (see 23 Pension and profit-sharing plans 23 instructions). Also attach Form 4567 10 24 Rent or lease see instructions a 11 Chemicals 31740 Vehicles, machinery, equipment b 24a 508 12 Conservation expenses seinstructions 12 Other (land, animals, etc.). 13 Custom hire machine work) 16320 25 Repairs and maintenance Depreciation and section 179 26 Seeds and plants 511871 44966 27 expense (see instructions) Storage and warehousing 78 Employee benefit programs Supplies - 29 other than on line 23. Takes 16 Feed 38121 30 Utilities .... 17 Fertilizers and me 31 Veterinary, breeding, and medicine 1825 18 Freight and trucking 37 Other expenses specify 19 Gasoline fuel, and oil 27581 a Marketing....... 24666 26 Insurance (other than health) b 32b Dues and Professional Fees C 32c 13010 21 Interest (see instructions) Miscellaneous.... a Mortgage (paid to banks, etc.) 34221 d Consultants 320 b Other 22 Labor hired des employment credits22 21300 33 5 24331 33 Total expenses. Add lines 10 through 32 If line 321 is negative, see instructions 34 34 Netfarm profit or loss). Subtract line 33 from line 9.... If a profit, stop here and see instructions for where to report a loss, complete lines 35 and 36 35 Reserved for future use 36 Check the box that describes your investment in this activity and see instructions for where to report your loss All investment is at risk Some investment is not at risk 1554 words LV 245 TTTTT 54105 4251 320 321 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 balance 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 Paid income and social security taxes Purchased farm land Nonfarm Income Withdrew cash for living expenses Took out new loans Repaid principal on loans Amount $5,061 $171 348 $45,983 $50,293 $542,966 $365,587 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 2018? Why? (20 points) 4. Generate a Statement of Cash Flow for Billy's Beef Farm for 2018. (20 points) 5. Generate a Statement of Owner Equity for Billy's Beef Farm for 2018. (20 points) 6. Assess Billy's Beef Farm's profitability and capital efficiency for 2018. Use an opportunity cost of labor and management of $60,000. (20 points) 340 words EX 2 Balance Sheet for Billy's Farm December 31, 2017 Current Assets Cash and checking balance Prepaid expenses & supplies Accounts receivable Hedging account Crop inventory held for feed or sale Market livestock held for sale Total Current Assets 23,445 33,179 16,308 3,523 219,689 165,232 461,376 Current Liabilities Accrued interest Accounts payable Current notes Principal due on term debt 12,439 15 285 221,012 44,217 $ Total current liabilities $ 292,953 Total intermediate liabilities $ 121,037 Intermediate Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets $ 152,312 336.406 37.558 29.266 555,542 Total long term liabilities $ 323,912 Total liabilities 737,902 Long Term Assets Farm land Buildings and improvements Other long-term assets Total Long Term Assets $ Total equity $ 934,099 511,728 115,969 27.386 655,083 Total Farm Assets $ 1,672,001 Total Liabilities & Equity $ 1,672,001 Balance Sheet for Billy's Beef Farm December 31, 2018 Current Assets Cash and checking balance Prepaid expenses & Supplies Accounts receivable Hedging account Crop inventory held for feed or sale Market livestock held for sale Total Current Assets Current Liabilities 27.299 Accrued interest 37.950 Accounts payable 29,951 Current notes 3,938 Pnncipal due on term debt 292,834 180,658 Total current liabilities $ $ 572,630 Total intermediate liabilities $ 15,907 14,182 303.982 54,507 389,578 154,254 142,013 300,284 Intermediate Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets 44,689 30,913 517.899 Total long term liabilities $ 422,635 $ Total liabilities $ 966,467 Total equity $ 945,000 Long Term Assets Earm land Buildings and improvements Other long-term assets Total Long Term Assets 683,076 112,336 25,534 820,946 $ Total Liabilities & Equity $ 1,911,475 $ 1,911,475 Total Farm Assets (Fom 1040) Profit or Loss Erom Farming OMS Attach to form 1040, Form 1040NA, Form 1041, or Form 1065. 2018 Go to www .gow Schedule for instructions and the latest information Sene14 Name of propre Social Security number Farmer A P C crep or activity Bunter code from Part IV C Accounting method DEmployemberNet Beel III Cash Accrual IIIIIII E Did you material participate in the operation of this business during 2018? No see instructions foemi on passive losses Yes No F Did you make any payments in 2018 that would require you to file Forms) 1099 (see instructions D Yes No Yes did you or will you required Forms 10992 Yes No Part F arm Income Cash Method. Complete Parts and Accrual method Complete Parts II and II and Part I line 9) 18 Sales of livestock and other resale items (see instructional ta b Cost or other basis of livestock or other items reported on line 1a 1b Subtract line lb trom line 1 128682 2 Sales of livestock produce, grains, and other products you raised 3a Cooperative distributions (Forms) 1099-RATRI 3a 3333 3 b Taxable amount 4a Agricultural program payments (see instructions). 4a 34527 4 Taxable amount 5 Commodity Credit Corporation (CCC) loans reported under election CCC loans forfeited . - 5b 5c Tarable amount 6 Crop Insurance proceeds and federal crop disaster payments (see instructions) # Amount received in 2018_ - 6a 18335 6 b Taxable amount c ielection to defer to 2019 is attached check here sd Amount deferred from 2017 7 Custom hire machine work) income 13671 1 Other income, including federal and state gasoline or fuel tax credit or refund (see Instructions) 21104 9 Gross income. Add amounts in the right column lines 1c, 2, 3, 4b Sa, 5, 66, 60, 7, and 8). If you use the accrual method, enter the amount from Part III line 50 See instneclions 47855 Part II Farm Expenses Cash and Accrual Method. Do not include personal or living expenses. See Instructions 10 Car and truck expenses (see 23 Pension and profit-sharing plans 23 instructions). Also attach Form 4567 10 24 Rent or lease see instructions a 11 Chemicals 31740 Vehicles, machinery, equipment b 24a 508 12 Conservation expenses seinstructions 12 Other (land, animals, etc.). 13 Custom hire machine work) 16320 25 Repairs and maintenance Depreciation and section 179 26 Seeds and plants 511871 44966 27 expense (see instructions) Storage and warehousing 78 Employee benefit programs Supplies - 29 other than on line 23. Takes 16 Feed 38121 30 Utilities .... 17 Fertilizers and me 31 Veterinary, breeding, and medicine 1825 18 Freight and trucking 37 Other expenses specify 19 Gasoline fuel, and oil 27581 a Marketing....... 24666 26 Insurance (other than health) b 32b Dues and Professional Fees C 32c 13010 21 Interest (see instructions) Miscellaneous.... a Mortgage (paid to banks, etc.) 34221 d Consultants 320 b Other 22 Labor hired des employment credits22 21300 33 5 24331 33 Total expenses. Add lines 10 through 32 If line 321 is negative, see instructions 34 34 Netfarm profit or loss). Subtract line 33 from line 9.... If a profit, stop here and see instructions for where to report a loss, complete lines 35 and 36 35 Reserved for future use 36 Check the box that describes your investment in this activity and see instructions for where to report your loss All investment is at risk Some investment is not at risk 1554 words LV 245 TTTTT 54105 4251 320 321