a$)$ Assume that a farmer has current assets including cash of KS$0,000,$ K$70,174$ in livestock inventory, K$560,997$ in crop inventory, purchased inputs of K$80,377,$ cash invested in growing crops ofK$20,834,$ and prepaid insurance of K$9750.$ ln addition, assume that th

termed assets of investments in cooperatives of K$5770,$ land and building of K$989\_\_$farm, equipment of KlO$0,7380,$ and breeding livestock of Kl $70,499.$ Assume that the operator dwelling is worth K$91,683.$ Assume that the current liabilities include notes payable within the

$$ year of KlS$0,600,$ current portion of long$-$term debt of K$70,706,$ accrued interest of K$30,115,$ and accounts payable of K$40,924.$ Finally, assume that the long$-$term debt includes K$670,553$ of real estate debt and K$90,040$ of equipment debt. What is owner equity? Construct the firm's balance sheet. $(14$ Marks$)$

Assume that the firm has gross cash income of K$141,214,$ variable cash expenses of K$74,279($including livestock purchases, feed, other livestock related expenses, seed and plants, fertilizer and chemicals, utilities, labor, fuel and oils, repairs and maintenance, and machine hire$),$ insurance payments of K$3,599,$ rent and lease payments of K$20,257,$ interest of KS$,711,$ and depreciation of Kl$2,620.$ Construct the firm's income statement. $(6$ Marks