You have calculated Net Farm Income (NFI) on a cash basis to be $90,000. Based on the additional information provided answer questions a. and b.

• Sale of used combine (capital asset sale): $20,000
• Grain inventories (revenue item)
  • Beginning: $9,000
  • Ending: $4,000
• Accounts payable (expense item)
  • Beginning: $2,000
  • Ending: $7,000

1. Calculate Net Farm Income from Operations (NFIO) on a cash basis
2. Calculate Net Farm Income (NFI) on an accrual basis