Net Income Problem There are two parts to each question. 1) Use the following information to compute values for each of the profitability measures listed below (show your work!). Note: you might want to use to conduct the analysis, 2) Evaluate each compute value/measure and specify whether is it one of the following: weak, fair, strong. Use the income statement class handout to determine the level. Balance Sheet Happy Cows Dairy Assets Current assets Fixed assets Total farm assets Liabilities Current liabilities Long-term liabilities Total liabilities Net Worth Date: 1/01/20xx Beginning $300,000 $1,450,000 $1,750,000 $195,025 $450,000 $645,025 $1,104,975 Date: 12/31/20xx Ending $310,000 $1,500,000 $1,810,000 $195,025 $445.000 $640,025 $1,169,975 Change $10,000 $50,000 $60,000 $0 -$5,000 -$5,000 $65,000 % Change 3.3% 3.4% 3.4% 0.0% -1.1% -0.8% 5.9% Question 8 (4 points) Net Farm Income (two parts) a) Answer/Calculation: b) Specify Financial position (Strong, Fair, Weak):