Using the Balance Sheet, Income Statement, and Statement of Owners Equity answer keys from your homework (I attached them to your graded Excel homeworks, but will also post them in the Week 6 Module), provide me with the following (you must show your work):
- Two measures of liquidity
- Two measures of solvency
- One measure of repayment capacity
- Two measures of financial efficiency
Based on your calculations above, tell me the strongest part of this business and the weakest part of the business. Make sure you explain why/how you reached these decisions.
K11 G - J K L A B D E F 5 FARM ASSETS Cost Value Market Value FARM LIABILITIES Market Value 6 7 Checking and Savings Accounts $1,985.00 $1,985.00 8 Crops held for sale or feed $71,617.40 $71,617.40 Accounts payable $11,770.00 9 Investment in growing crops Short-term notes and credit lines $0.00 10 Commercial feed on hand $5,674.00 $5,674.00 Accrued interest - on short debt $0.00 11 Prepaid expenses $19,470.00 $19,470.00 on intermediate debt $12,799.00 12 Market livestock $245,370.00 $245,370.00 - on long-term debt $52,719.00 13 Supplies on hand $3,122.00 $3,122.00 Principal due in 12 mo. - intermediate $37,589.00 14 Accounts receivable $23,250.00 $23,250.00 long-term $102,000.00 15 Other $0.00 $0.00 Other 16 A. Total Current Assets $370,488.40 $370,488.40 E. Total Current Liabilities $216,877.00 17 18 Breeding livestock $139,843.00 $139,843.00 19 Machinery and Equipment $480,080.00 $399,000.00 Notes and contracts, remainder $127,561.00 20 Other Other 21 B. Total Intermediate Assets $619,923.00 $538,843.00 F. Total Intermediate Liabilities $127,561.00 22 23 Buildings/improvements $92,227.00 $52.880.00 24 Farmland #######################Notes and contracts, remainder $709,498.00 25 Other Other 26 C. Total Long-term Assets Total Long-term Liabilities $709,498.00 27 D. Total Farm Assets (A +B+C) Total Farm Liabilities (E + F +G) $1,053,936.00 28 I. Farm Net Worth, Cost Value (D-H) ##### J. Farm Net Worth, Market Value (D- ############ Sheet1 Sheet2 Sheet3 Ready IH Type here to search Pi WL PA x] l ) 11:51 A 6/10/20 K11 E F G - I B $139.843.00 $480,080.00 18 Breeding livestock 19 Machinery and Equipment 20 Other 21 B. Total Intermediate Assets 22 23 Buildings/improvements 24 Farmland 25 Other D $139,843.00 $399,000.00 Notes and contracts, remainder Other $538,843.00 F. Total Intermediate Liabilities $127,561.00 $619,923.00 $127,561.00 $709,498.00 26 C. Total Long-term Assets 27 D. Total Farm Assets (A+B+C) 28 $92,227.00 $52,880.00 $2,550,000.00 $14.669,280.00 Notes and contracts, remainder Other $2,642,227.00 $14,722,160.00 G. Total Long-term Liabilities $3,632,638.40 S15,631,491.40 H. Total Farm Liabilities (E +F+G) I. Farm Net Worth, Cost Value (D-H) J. Farm Net Worth, Market Value (D-H) $709.498.00 $1,053,936.00 $2,578,702.40 S14,577,555.40 29 30 31 1.71 32 33 34 $153,611.40 0.07 Current Ratio, Market Value Working Capital Debt to Asset Ratio, Market Value Equity to Asset Ratio, Market Value Debt to Equity Ratio, Market Value Net Capital Ratio, Market Value Debt Structure Ratio (A - E) (A - E) (H =D) (J-D) (H = J) (D-H) (E = H) 0.93 0.07 35 36 37 14.83 0.21 Sheet1 Sheet2 Sheet3 Ready Type here to search Bi WE P 11 6/
