For this problem, you will use a balance sheet and income statement for a hypothetical farm. The balance sheet and income statement are based on the excel spreadsheet previously available from Iowa State University Extension

The spreadsheet has several tabs; use the Balance Sheet and Income Statement tabs.

1. Fill in the super brief version of the farm balance sheet below using the information in the Balance Sheet table of the spreadsheet.
   
2. Using the Balance Sheet from part a,

1. What was the Current Ratio on \(1 / 1 / 2013\) and on \(1 / 1 / 2014\) ?
2. What was the Debt to Asset Ratio on \(1 / 1 / 2013\) and on \(1 / 1 / 2014\) ?
3. What was the Equity to Asset Ratio on 1/1/2013 and on \(1 / 1 / 2014\) ?
4. What was the Debt to Equity Ratio on \(1 / 1 / 2013\) and on \(1 / 1 / 2014\) ?
5. Briefly comment on these ratios: How is the farm doing?

c) Fill in the super brief version of the farm income statement below using the information in the Income Statement table of the spreadsheet. I give a value for Unpaid Labor & Management.

d) Using the Balance Sheet from part a and the Income Statement from part b,

1. What was Net Farm Income (as per class notes) for 2013?
2. What was the Net Farm Income from Operations in 2013 ?
3. What was the Return on Assets and the Rate of Return on Assets in 2013 ?
4. What was the Return on Equity and the Rate of Return on Equity in 2013 ?
5. What was the Operating Profit Margin in 2013?
6. How does ROROA and ROROE change if Unpaid Labor & Management is $0?
7. Briefly comment on these ratios: How is the farm doing?

Price: $11.52

Solution: The downloadable solution consists of 4 pages, 752 words and 2 charts.
Deliverable: Word Document