A. Balance Sheet Development & Analysis Putting a balance sheet together is a tedious, but important, job
Question:
A. Balance Sheet Development & Analysis Putting a balance sheet together is a tedious, but important, job for the farm manager. This problem requires you to put one together, calculate ratios, and interpret the findings. You are a lender working with a farm client who is applying for a new loan. You need an updated balance sheet to help you make this decision. The client gathered the following information on February 15, 2023. Item No. of Units $/unit Notes Milo on hand 4,500 cwt. $4.30 Hay on hand 125 tons $71.45 Growing wheat 475 acres $18.25 This is currently in the field Farm mortgage NA $29,950 principal $12,000 accrued interest -Due on 4/1 -Balance will be $473,000 after 4/1 payment Buildings & improvements NA $183,780 Note payable on feeder cattle NA $21,500 Total is due on 11/1 Calves 110 head $299 Will be sold in May Feeder cattle 123 head $575 Will be sold in 60 days Note payable at bank NA $29,800 Total is due on 4/1 Vehicles NA $20,600 Other machinery & equipment NA $71,200 Loan on beef cows (breeding livestock) NA $39,475 principal $3,750 accrued interest -Due on 10/1 -Balance will be $87,000 after 10/1 payment Land
Auditing and Assurance services an integrated approach
ISBN: 978-0134065823
16th edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan