Total points: $25$

Question $1(15$ points$)$: Use the following financial information for an agribusiness firm's $2022$

operation to answer parts $($a$)$ and $($b$)$ below.

Current assets

Net worth, end of year

$200,000$

Depreciation

$200,000$

Operating expenses

$20,000$

Income tax rate

$60,000$

Interest expense.

$20\%$

Operating receipts

$5,000$

$200,000$

Noncurrent assets

$400,000$

Dividends

Current liabilities

$10,000$

$150,000$

a$.$ Consider the relevant information above to formulate a simple annual income statement. $(5$

points$)$

b$.$ Complete the year$-$end balance sheet. $(5$ points$)$

Assets

Current

Noncurrent

Total

Liabilities & Net Worth

Current

Noncurrent

Net Worth

Total