Milo on hand 4200 cwt @ $4.40 per cwt. Hay on hand 75 tons @ $50.00 per ton Growing wheat 280 acres @ $22.50 per acre Farm mortgage (due 4/01) $14,000 principal $20,000 accrued interest balance after 4/01 payment $208,000 Buildings & improvements $48,000 Note payable on feeder cattle (all due 11/15) $34,000 Calves (to be sold in May) 98 head @ $275 per head Feeder cattle (to be sold in 60 days) 138 head @ $575 per head Note payable at bank (all due 3/1) $52,000 Vehicles $15,500 Other machinery & equipment $80,500 Loan on beef cows (due 10/01) $9,000 principal, $3,900 accrued interest balance after 10/1 payment $38,000 Land (present market value) 1020 acres @ $560 per acre Beef breeding cows 106 head @ $650 per head Bulls 4 head @ $1,000 each Checking account balance $5,400 Acount payable at Joe's Feed & Seed $4,200 Account receivable $1,600 Shop Equip. (welder, lathe, drill press, etc.) $2,000 Ford Motor Co. stock 200 shares @ $65 per share Other Information 1) Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May. 2) Income and social security taxes on last year's income is estimated at $7,200. 3) Rhonda contributed $50,000 to get her business started. 4) Retained earnings since the beginning of the business equals $305,000. 4-1 1. What is Rhonda's owner's equity as of February 15? (1 point) Answer 2. How much working capital does Rhonda have? (1 point) Answer 3. 3. What is her current ratio? (1 point) Answer 4. What is her debt/asset ratio? (1 point) Answer 5. What is her debt/equity ratio? (1 point) Answer 6. What is her equity/asset ratio? (1 point) Answer 7. Assume you are a financial consultant hired by Rhonda to analyze her financial condition. Based on this balance sheet, what part of her financial condition is most in need of improvement? WHY? (2 points) 8. What does this balance sheet tell you about the amount of profit Rhonda made last year? Explain your answer. (2 points) 9. Rhonda wants to borrow $50,000 from the bank to buy additional beef breeding cows. They will cost $50,000. Assume the loan is made, the cows are purchased. (3 points) a) What will Rhonda's owner's equity be immediately after the transactions are completed if there are no other changes on her balance sheet? Answer b) What will her debt/asset ratio be? Answer c) What will be her debt/equity ratio be? Answer 10. If you were Larry Loanmaker, would you loan Rhonda the money? Why? (2 points) Milo on hand 4200 cwt @ $4.40 per cwt. Hay on hand 75 tons @ $50.00 per ton Growing wheat 280 acres @ $22.50 per acre Farm mortgage (due 4/01) $14,000 principal $20,000 accrued interest balance after 4/01 payment $208,000 Buildings & improvements $48,000 Note payable on feeder cattle (all due 11/15) $34,000 Calves (to be sold in May) 98 head @ $275 per head Feeder cattle (to be sold in 60 days) 138 head @ $575 per head Note payable at bank (all due 3/1) $52,000 Vehicles $15,500 Other machinery & equipment $80,500 Loan on beef cows (due 10/01) $9,000 principal, $3,900 accrued interest balance after 10/1 payment $38,000 Land (present market value) 1020 acres @ $560 per acre Beef breeding cows 106 head @ $650 per head Bulls 4 head @ $1,000 each Checking account balance $5,400 Acount payable at Joe's Feed & Seed $4,200 Account receivable $1,600 Shop Equip. (welder, lathe, drill press, etc.) $2,000 Ford Motor Co. stock 200 shares @ $65 per share Other Information 1) Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May. 2) Income and social security taxes on last year's income is estimated at $7,200. 3) Rhonda contributed $50,000 to get her business started. 4) Retained earnings since the beginning of the business equals $305,000. 4-1 1. What is Rhonda's owner's equity as of February 15? (1 point) Answer 2. How much working capital does Rhonda have? (1 point) Answer 3. 3. What is her current ratio? (1 point) Answer 4. What is her debt/asset ratio? (1 point) Answer 5. What is her debt/equity ratio? (1 point) Answer 6. What is her equity/asset ratio? (1 point) Answer 7. Assume you are a financial consultant hired by Rhonda to analyze her financial condition. Based on this balance sheet, what part of her financial condition is most in need of improvement? WHY? (2 points) 8. What does this balance sheet tell you about the amount of profit Rhonda made last year? Explain your answer. (2 points) 9. Rhonda wants to borrow $50,000 from the bank to buy additional beef breeding cows. They will cost $50,000. Assume the loan is made, the cows are purchased. (3 points) a) What will Rhonda's owner's equity be immediately after the transactions are completed if there are no other changes on her balance sheet? Answer b) What will her debt/asset ratio be? Answer c) What will be her debt/equity ratio be? Answer 10. If you were Larry Loanmaker, would you loan Rhonda the money? Why? (2 points)