Assume a famer has an accounting period running from January 1 to December 31. Use the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume a famer has an accounting period running from January 1 to December 31. Use the following information obtained for the past calendar year accounting period to complete an income statement and answer questions 1 through 12. Inventory Values Сторs Livestock January 1 $32,850 $18,600 December 31 $25,440 $31,500 Revenue and Expenses Crops Sold Insurance Depreciation Feed Purchased Property Taxes Misc. Expenses Market Livestock Sold Repairs Fertilizer Exp. Supplies Labor Hired Fuel Expense Gain on mach. sale Change in interest payable 28,900 21,200 3,400 5,800 91,660 12,100 9,400 4,800 22,600 5,800 11,100 (2,400) $189,600 3,800 33,400 Feeder Livestock Purchased. 46,500 6,410 4,800 4,700 Gain on Sale of breeding stock 7,600 8,890 9,780 +1,400 Interest Paid Seed Purchased Vet. & Health Expense Income from Custom Work Gov't payment income Chemical exp. Change in acct. payable Other Information $ 38,000 10,700 $402,000 $375,675 Average Asset Value (2007) $785,000 Family Living Expenses Income Tax Paid Owner's Equity (12/31) Average Equity Value Opportunity Cost of Operator Labor 24,000 Opportunity Cost of Operator Management Opportunity Cost of Capital 12,000 9% Questions 1 through 7 and 9 through 11 are worth 1.5 points each Questions 8 and 12 are worth 2.5 points each 1. What was Net Farm Income from Operations? 2. What was Net Farm Income? 3. Compute Retum to Management: 4. Compute Retum to Labor: 5. Compute Retum on Assets: (%) 6. What is Return on Equity (in %)? 7. What is the Operating Profit Margin Ratio? S. Compute the Asset Tumover Ratio which is Total Revenue divided by Total Assets. What does this value mean? How do you interpret it? 9. How much did I. M. Famer's equity increase or decrease during the past year? 10. What was I. M.'s equity on January 1? 11. Value of Farm Production is a concept defined as Total Revenue minus livestock purchased minus feed purchased. What was I. M's Value of Fam Production for the past year? 12. What does Value of Farm Production Measure? Assume a famer has an accounting period running from January 1 to December 31. Use the following information obtained for the past calendar year accounting period to complete an income statement and answer questions 1 through 12. Inventory Values Сторs Livestock January 1 $32,850 $18,600 December 31 $25,440 $31,500 Revenue and Expenses Crops Sold Insurance Depreciation Feed Purchased Property Taxes Misc. Expenses Market Livestock Sold Repairs Fertilizer Exp. Supplies Labor Hired Fuel Expense Gain on mach. sale Change in interest payable 28,900 21,200 3,400 5,800 91,660 12,100 9,400 4,800 22,600 5,800 11,100 (2,400) $189,600 3,800 33,400 Feeder Livestock Purchased. 46,500 6,410 4,800 4,700 Gain on Sale of breeding stock 7,600 8,890 9,780 +1,400 Interest Paid Seed Purchased Vet. & Health Expense Income from Custom Work Gov't payment income Chemical exp. Change in acct. payable Other Information $ 38,000 10,700 $402,000 $375,675 Average Asset Value (2007) $785,000 Family Living Expenses Income Tax Paid Owner's Equity (12/31) Average Equity Value Opportunity Cost of Operator Labor 24,000 Opportunity Cost of Operator Management Opportunity Cost of Capital 12,000 9% Questions 1 through 7 and 9 through 11 are worth 1.5 points each Questions 8 and 12 are worth 2.5 points each 1. What was Net Farm Income from Operations? 2. What was Net Farm Income? 3. Compute Retum to Management: 4. Compute Retum to Labor: 5. Compute Retum on Assets: (%) 6. What is Return on Equity (in %)? 7. What is the Operating Profit Margin Ratio? S. Compute the Asset Tumover Ratio which is Total Revenue divided by Total Assets. What does this value mean? How do you interpret it? 9. How much did I. M. Famer's equity increase or decrease during the past year? 10. What was I. M.'s equity on January 1? 11. Value of Farm Production is a concept defined as Total Revenue minus livestock purchased minus feed purchased. What was I. M's Value of Fam Production for the past year? 12. What does Value of Farm Production Measure?
Expert Answer:
Answer rating: 100% (QA)
Analysis of Income Statement SHOW WORK WHERE NEEDED 1 What was Net Farm Income from Operations 90250 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Ten years ago the Templeton Company issued 19-year bonds with an 9% annual coupon rate at their $1,000 par value. The bonds had an 6% call premium, with 5 years of call protection. Today Templeton...
-
Uea the following information supplied by Ryobi Eniarprises to prepare the 4.1 Deblors Collection Schedule for January and February 2021. (4 marha) 42 Cash Budget for January and February 2021. (16...
-
Use the following information for problems 1-4. On January 1, 2020, Adams acquires 100% of Baker in a transaction accounted for using the acquisition method. Adams will use equity accounting for its...
-
Write a static method max3() that takes three int arguments and returns the value of the largest one. Add an overloaded function that does the same thing with three double values.
-
A rejection network that can be used instead of the twin-T network of Example 8.4 is the bridged-T network shown in Figure P8.3. The transfer function of this network is where Compute the bandwidth...
-
1. Describe the differences between a legitimate business model and a pyramid scheme. 2. Evaluate how Herbalife managed its regulation and public relations risks. 3. Why has Herbalife continued to be...
-
Describe how workers and firms marry each other in the labor market when there are many types of jobs offering various levels of risk to their workers.
-
City View Restaurant is about to open at a new location. Operating plans indicate the following expected cash flows: 1. Compute the NPV for all these cash flows. This should be a single amount. Use a...
-
Major medical complexes and their service providers continue to move toward advanced health informatics - acquiring, managing, and using information to provide better healthcare. A new analyzer for...
-
Goldie and Kurt want advice from your financial advising firm. They have provided the following information. They graduated from university four years ago and they have good jobs, but neither of them...
-
Draw a logic gate diagram for F(x,y)=(x+y)(x+y)
-
Jamie Draperies manufactures curtains. To complete a curtain, Jamie requires the following inputs: During the second quarter, Jamie Draperies made 1,500 curtains and used 14,000 square yards of...
-
Define visitation and describe a common schedule.
-
Headspace is a mobile app that provides meditative and mindfulness lessons to people around the world. Founded in 2006 by Andy Puddi-combe, a former marketing executive and Buddhist monk, this firms...
-
Identify the purposes of discovery.
-
Describe how the client can assist in the information-gathering process.
-
Think about the role of psychological safety in developing and evolving awareness of issues of inequity or unfairness in organizations Drawing on our readings and the google case, please write an...
-
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
-
Is there enough evidence to conclude that Republicans are more likely than Democrats (PARTYID3: 1 = Democrat, 3 = Republican) to answer the following question correctly. A doctor tells a couple that...
-
Can we infer from the data that there are differences in the total unrealized capital gains (KGTOTAL) between the three industry classifications?
-
Refer to Exercise 8.52. Find the probability of these events. a. A 2-year-old child is taller than 36 inches. b. A 2-year-old child is shorter than 34 inches. c. A 2-year-old child is between 30 and...
-
Figure P32.94 shows, for an AC circuit, the instantaneous current through a circuit element and the potential difference across the element. What can you determine about the element? Data from Figure...
-
The circuit in Figure P32.96 represents your planned design for a wall power supply that will run a radio that usually runs on a 9-V battery. The power supply uses a transformer (not shown) to...
-
Your boss has purchased a new AC power source to run a high-voltage, low-current display, but it is not working. While he is fuming, you look at the owner's manual and discover that this power source...
Study smarter with the SolutionInn App