Calculate the 2010 leverage ratio, operating expense ratio, and working capital as a proportion of the value of farm production ratio, interest expense ratio, and depreciation expense ratio for TDM farms.

 

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ASSETS Current Assets Cash and equivalents Grain and livestock inventory Other current farm assets Total current assets Noncurrent Assets Machinery and equipment Buildings Land Other noncurrent farm assets Total noncurrent assets Total Farm Assets LIABILITIES Current Liabilities TDM Farms Balance Sheet 2009 Notes payable Accounts payable Current portion of term debt Other current farm liabilities Total current liabilities Noncurrent Liabilities Deferred portion of term debt Total noncurrent liabilities Total Farm Liabilities NET WORTH Total Net Worth Value of farm production Non-depreciation operating expenses Depreciation Interest expense Family living withdrawals Nonfarm income Net farm income from operations $1,000 60,000 1,000 62,000 302,175 Total Liabilities and Net Worth $497,000 100,000 20,000 300,000 15,000 435,000 $497.000 $15,500 2,325 12,000 15,000 44,825 TDM Farms Income Statement Income tax expense Other income from farm assets Prin. payments on current portions term debt/cap leases Interest payments on term debt and capital leases 150,000 150,000 $194.825 $139,160 76,538 15,000 14,571 $33.051 TDM Farms Other information $25,000 0 9,091 0 12,000 13,500 2010 $1,200 40,000 1,000 42,200 110,000 18,000 290,000 15,000 433.000 $475.200 $10,550 1,582 14,000 20,000 46,132 136,000 136,000 $182.132 293,068 $475.200 $160,034 79,321 16,000 14,570 $50.143 $25,700 0 6,700 0 14,000 12,240 ASSETS Current Assets Cash and equivalents Grain and livestock inventory Other current farm assets Total current assets Noncurrent Assets Machinery and equipment Buildings Land Other noncurrent farm assets Total noncurrent assets Total Farm Assets LIABILITIES Current Liabilities TDM Farms Balance Sheet 2009 Notes payable Accounts payable Current portion of term debt Other current farm liabilities Total current liabilities Noncurrent Liabilities Deferred portion of term debt Total noncurrent liabilities Total Farm Liabilities NET WORTH Total Net Worth Value of farm production Non-depreciation operating expenses Depreciation Interest expense Family living withdrawals Nonfarm income Net farm income from operations $1,000 60,000 1,000 62,000 302,175 Total Liabilities and Net Worth $497,000 100,000 20,000 300,000 15,000 435,000 $497.000 $15,500 2,325 12,000 15,000 44,825 TDM Farms Income Statement Income tax expense Other income from farm assets Prin. payments on current portions term debt/cap leases Interest payments on term debt and capital leases 150,000 150,000 $194.825 $139,160 76,538 15,000 14,571 $33.051 TDM Farms Other information $25,000 0 9,091 0 12,000 13,500 2010 $1,200 40,000 1,000 42,200 110,000 18,000 290,000 15,000 433.000 $475.200 $10,550 1,582 14,000 20,000 46,132 136,000 136,000 $182.132 293,068 $475.200 $160,034 79,321 16,000 14,570 $50.143 $25,700 0 6,700 0 14,000 12,240

Answer rating: 100% (QA)

To calculate the requested ratios for TDM Farms in 2010 we will use the following formulas 1 Leverag... View the full answer