Question

Please show formulas/calculations and answer both questions (19 & 20). I would really appreciate it. Thank you!

19 Operating Profit Margin Ratio (OPMR). 1 point. Given that an OPMR from 15% H 25 % is good, above 25 % is excellent, but anything below 15 % is poor, determine where Soul Food Farming Company stands, given the following. 

gross income: $200,000 expenses: $$125,000 value of family labor & management: $50,000 

a) excellent 

b) good 

c) marginal 

d) poor 

e) average 

20 Net Farm Income Ratio (NFIR). 1 point. 

Given that an NFIR from 10 % to 20 % is good, above 20 % is excellent, but anything below 10 % is poor, determine where Down and Out Farm stands, given the following. 

gross income: $200,000 expenses: $125,000 value of family labor & management: $50,000 

a) excellent 

b) marginal 

c) good 

d) poor 

e) average 

Answer 1

(1 OPMR = Operating profit & 100 mg Net Sales - Operating profit - Revenue - Expenses a. - 200,000-125,000 - 50,000 i oito a $ 25,000 i Netsales = Revenuet osm z tsitas + ( Poop) OPMR = $25,000 + 100 = 12.5 % $ 200,000 A 20 (20) Net Farm Income Ratio - Net Farm Income x 100 Gross Income Net Farm Income & Value of family labourę I Management & $50,000 100 = 25% $ 200,000 Excellent)

9 As the Operating profit Margin Ratio is 12.5% that is less than 15%, so it is in Poor condition tifed prostrany. Soo Answer: - D (Poos o As the Net Farm Income Ratio is 25% that is more than 20% So it is in Encellent condition Answer:- A [Encellent]