You have $50,000 farm-related cash on hand in checking and savings. 1. Inventory of Crops and...

 

  

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You have $50,000 farm-related cash on hand in checking and savings. 1. Inventory of Crops and Livestock is as follows: Total corn in storage is 25,000 bushels. Current market price is $4.50/bu. b. Total Soybeans in storage are 3,500 bushels. Current market price is $10.75 c. 21 steer calves valued at $1,000.00/head. d. 16 heifer calves valued at $900.00/head. e. 49 bred cows (worth $1,200 each) and 2 bulls (worth an average of $2,500 each). (Hint: cows and bulls are your breeding livestock) 2. Feed and supplies: a. a) Corn silage: 300 tons valued at $35 per ton b) Haylage: 100 tons worth $75 per ton c) Hay: 150 tons worth $125 per ton d) Corn Stalks: 50 tons at $35 each 3. Your current operating loan (due within one year) with Farm Credit is $90,000, with accrued interest of $4,500. 4. In November of 2020, you prepaid $36,000 for corn seeds for 2021's crops. 5. You have 500 gallons of diesel fuel on hand (currently worth $2.25/gallon) 6. Your machinery and equipment have a depreciated book value of $235,000 from your depreciation schedule, but you estimate its market value at $355,000. 7. The farm has several buildings that have a depreciated book value of $190,000. Your estimated market value is $385,000. 8. You sold a heifer calf to your niece for a 4-H project. You're still waiting for her to pay you the $700 you agreed upon. 9. You own 640 acres of farmland that was purchased in bits and pieces over the years for total of $2,500,000. Currently, land in your area is valued at $8,500/ac. 10. You own hunting cabin and a little land, worth $75,000 and a personal car worth $12,000. 11. You make some money on the side doing trucking, earning $38,000/year. 12. On December 20th, 2020, you picked up more hay for your livestock worth a total of $10,000. You will not pay for this feed until mid-January of 2021. The hay is included in your inventory above. 13. You still owe Soil Testers, Inc. $1,000 for soil sampling. 14. Your neighbor still owes you the second of two installment payments of $8,000 for helping with 2020's harvest. 15. The vet bill arrived in the mail today (January 1) and showed the farm's outstanding vet bill for 2020 at $1,500. 16. On your farm's credit card, you have a balance of $4,200. Your personal credit card has a balance of $2,500. 17. You started the year with student loans totaling $16,000, but you paid off $3,000 in principal (balance remaining: $13,000) and $600 in interest. Below find a listing of longer-term liabilities: Description Purpose Date Remaining Current Balance at Portion end of 2021 (paid 2021) Jan. 1, Original Interest Incurred Amount Accrued 2021 Mortgage Tractor loan 4WD $32,000 $20,000 Land loan 2018 S800,000 $140,000 $636,000 $70,000 $12,250 $2,000 2013 tractor F350 2015 $40,000 $15,000 $4,400 $900 Pickup loan Barn loan 2014 $275,000 $230,000 $19,500 $1,000 Equipment loan Forage Harvester 2016 $50,000 $10,000 $10,000 S500 To analyze the balance sheet, calculate the following: Current Ratio, Market Value • Working Capital, Market Value Debt to Asset Ratio, Market Value • Equity to Asset Ratio, Market Value Debt to Equity Ratio, Market Value Net Capital Ratio, Market Value Debt Structure Ratio You have $50,000 farm-related cash on hand in checking and savings. 1. Inventory of Crops and Livestock is as follows: Total corn in storage is 25,000 bushels. Current market price is $4.50/bu. b. Total Soybeans in storage are 3,500 bushels. Current market price is $10.75 c. 21 steer calves valued at $1,000.00/head. d. 16 heifer calves valued at $900.00/head. e. 49 bred cows (worth $1,200 each) and 2 bulls (worth an average of $2,500 each). (Hint: cows and bulls are your breeding livestock) 2. Feed and supplies: a. a) Corn silage: 300 tons valued at $35 per ton b) Haylage: 100 tons worth $75 per ton c) Hay: 150 tons worth $125 per ton d) Corn Stalks: 50 tons at $35 each 3. Your current operating loan (due within one year) with Farm Credit is $90,000, with accrued interest of $4,500. 4. In November of 2020, you prepaid $36,000 for corn seeds for 2021's crops. 5. You have 500 gallons of diesel fuel on hand (currently worth $2.25/gallon) 6. Your machinery and equipment have a depreciated book value of $235,000 from your depreciation schedule, but you estimate its market value at $355,000. 7. The farm has several buildings that have a depreciated book value of $190,000. Your estimated market value is $385,000. 8. You sold a heifer calf to your niece for a 4-H project. You're still waiting for her to pay you the $700 you agreed upon. 9. You own 640 acres of farmland that was purchased in bits and pieces over the years for total of $2,500,000. Currently, land in your area is valued at $8,500/ac. 10. You own hunting cabin and a little land, worth $75,000 and a personal car worth $12,000. 11. You make some money on the side doing trucking, earning $38,000/year. 12. On December 20th, 2020, you picked up more hay for your livestock worth a total of $10,000. You will not pay for this feed until mid-January of 2021. The hay is included in your inventory above. 13. You still owe Soil Testers, Inc. $1,000 for soil sampling. 14. Your neighbor still owes you the second of two installment payments of $8,000 for helping with 2020's harvest. 15. The vet bill arrived in the mail today (January 1) and showed the farm's outstanding vet bill for 2020 at $1,500. 16. On your farm's credit card, you have a balance of $4,200. Your personal credit card has a balance of $2,500. 17. You started the year with student loans totaling $16,000, but you paid off $3,000 in principal (balance remaining: $13,000) and $600 in interest. Below find a listing of longer-term liabilities: Description Purpose Date Remaining Current Balance at Portion end of 2021 (paid 2021) Jan. 1, Original Interest Incurred Amount Accrued 2021 Mortgage Tractor loan 4WD $32,000 $20,000 Land loan 2018 S800,000 $140,000 $636,000 $70,000 $12,250 $2,000 2013 tractor F350 2015 $40,000 $15,000 $4,400 $900 Pickup loan Barn loan 2014 $275,000 $230,000 $19,500 $1,000 Equipment loan Forage Harvester 2016 $50,000 $10,000 $10,000 S500 To analyze the balance sheet, calculate the following: Current Ratio, Market Value • Working Capital, Market Value Debt to Asset Ratio, Market Value • Equity to Asset Ratio, Market Value Debt to Equity Ratio, Market Value Net Capital Ratio, Market Value Debt Structure Ratio

Answer rating: 100% (QA)

Balance Sheet Liabilities Amt Amt Assets Amt Amt Cash in hand 50000 Inventory Corn 25000 bushels 45 112500 Capital balancing figure 2285300 Soyabean 3... View the full answer