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Date: 1/01/2021 Beginning Date: 12/31/2021 Ending Average Assets Current assets Fixed assets $831,000 $2,625,000 $900,680 $2,700,000 $865,840 $2,662,500 Total farm assets $3,456.000 $3,600,680 $3,528,340 Liabilities Current liabilities Fixed liabilities $330,050 $350,460 $340,255 $777,050 $784,000 $770,100 Total liabilities $1,114,050 $1,120,560 $1,117,305 Net Worth $2,341,950 $2,480,120 $2,411,035 Income Statement Name: Jan 1- Dec 31, 2021 Revenue Corn Sales $335,232 Hog Sales $283,815 Change in corn inventories $24,850 Gross revenue $643,897 Expenses Cash farm expenses $407,800 Depreciation $53,000 Total operating expenses $460,800 Net farm income from operations (NFIO) $183,097 Interest expense Cash interest paid on current loans $25,840 Cash interest paid on noncurrent loans $19,160 Total interest expense $45,000 Capital Adjustments Machinery (sold tractor) $12,500 Land $0 Total gain or loss on sale of capital assets $12,500 Net Farm Income (NFI) $150,597 Note: the unpaid labor and management expense was $50,000 Calculate and evaluate the beginning current ratio for 2021. 3.03; strong 3.03; fair 2.52; strong 2.52; fair Question 20 (3 points) Calculate and evaluate the debt to asset ratio for the beginning of 2021: 0.32; weak 0.32; fair 0.46; fair 0.46; strong Calculate and evaluate the net farm income ratio for 2021: 23.39%; strong 23.39%; weak 28.44%; weak 28.44%; strong (3 points) Calculate and evaluate return on assets (ROA) for 2021: 5.19%; fair 3.77%; weak 5.19%; weak 3.77%; fair points) Farms is: NOT liquid, and NOT solvent NOT liquid, but solvent Liquid, and solvent O Liquid, but NOT solvent points) If a farm's debt structure ratio is 40% this means: 40% of the farm's total debt must be paid within the next year The farm pays 40% interest on their loans The farm has paid off 40% of their debt so far this year

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