You have recently been hired as a junior financial analyst Prof Al's Farm (PAF), Inc. Your first job is to help him determine if the 2021's crops will be profitable. Your assignment is to project an annual income statement for the year 2021 based on all of the assumptions that are provided for you in the accompanying spreadsheet below. The farm consists of 100 acres, 35 acres are dedicated to corn, 30 acres to soybeans, and 5 acres to cut flowers. Based on historical data, it anticipated the farm will sell its products in Indiana and in Michigan, prices varying depending on the location and indicated chart below: PRICING CHART |Product Michigan Indiana Corn per ear S 0.0405 0.045 Soybeans per pounds 0.170S 0.175 Cut flowers per bunch 5 1.000 1.000 Based on previous years sales figures, the following chart shows the demand estimates by quarter for each of the three products Quarter Market Corn, ears Soybeans, pounds Cut flowers, bunches Q1 Michigan Indiana 500,000 300,000 100,000 120,000 1,000 750 Q2 Michigan Indiana 600,000 400,000 120,000 140,000 1,000 750 Q3 Michigan Indiana 1,800,000 2,000,000 200,000 250,000 1,000 750 Q4 Michigan 250,000 50,000 1,000 Indiana 175,00 10,01 7 In order to grow above, the farm requires the following COGS: Laborers 2 Hours per week 35 Weeks per year 36 Wage per hour $ 15.00 Acres Corn seed per acre $ 500.00 35 Soybeans seed per acre $ 300.00 30 Flower Seed per acre $ 50.00 5 |Fertilizer acre $ 250.00 Water per acre $ 500.00 70 insecticide per acre $ 35.00 70 in order to sell the product, the farm requires the following operatin expenses be paid on an annual basis: Insurance IT $5,000.00 Marketing $ 1,000.00 Travel $3,000.00 Entertainment $ 1,500.00 Utilities $5,000.00 Attorney $ 2,000.00 Accountant $ 2,000.00 Miscellaneous $ 1,000.00 70 BSE2310-Assignment1 PROF.xlsx Operating Budget Problem The farm pays taxes on its taxable income of 30% and are lucky to have no debt and no interest costs at present. Depreciation on their equipment is $25,000 per year. Finally, the following management salaries are CONFIDENTIAL because they relate to the owner and manager: Salary Bonus Benefits Owner Manager $ 100,000 $ 75,000 $ 25,000 $15,000 $ 15,000 S 7,500 CONSTRUCT A CONSOLIDATED INCOME STATEMENT THAT PROJECTS EARNINGS FOR 2021