Question

I Have to fill out a net worth statement and am lost please help

It is January 2 and the owner of Farms on the Brazos is putting together an annual net worth statement for the farming business. He has assembled the following items of information. Help him fit it all of these items together using the attached blank Net Worth statement. 1. The farm bank account has a balance of $4,250. a. C. 2. The grain inventory is as follows: Corn in storage is 44,000 bushels. Current market price is $2.25. b. They sold a 10,000-bu. futures contract for $2.45 per bushel in October. Current futures price is $2.30. They have 7,000 bu. of soybeans contracted for March delivery at $5.00 per bushel. Current soybean price is $4.50. 3. The livestock inventory is as follows: 1,200 head of 50-pound feeder pigs. Current value is $50 each. b. 800 head of pigs weighing about 150 pounds. Current market price for 250- pound market hogs is $.40 per pound ($100 per head), so value them at $75 each. 100 sows, valued at $150 each, and 8 boars worth $500 each. a. 4. They have 300 bags of purchased seed in storage for which they paid $80 per bag. 5. In November, they applied $17,000 worth of fertilizer on their cropland. 6. They also prepaid the elevator $20,000 for additional fertilizer for delivery and application in April. 7. In December, he sold 150 feeder pigs to a nephew for $8,000, to be paid when the pigs are sold in February. 8. Their other machinery and equipment have a depreciated value of $217,000 from their depreciation schedule, but they estimate its market value at $240,000. 9. The farm has several older buildings that added $50,000 to the purchase price of the farm 10 years ago. They have deducted $24,000 in depreciation expense from that purchase, so far. Their estimated market value is $30,000. 10. They own 240 acres of farmland that they purchased ten years ago for $315,000. They estimate its current value at $480,000. They also rent 500 acres of cropland for $125 per acre. 11. He owns a motorboat used for waterskiing, worth $14,500. 12. The current operating loan with Farm Credit is $87,300, with accumulated interest of $2,370.

Answer 1

Answer:

Net Worth Statement

Farm Asset	Cost Value (in $)	Market Value(in $)	Liabilities	Market Value(in $)
Cash	4,250		Short Term Loan	60,000
Fertilizer	17,000		Outstanding Exp.	20,000
Seeds	24,000		Accured Interest	4,800
Crop Head for Sale	24,500	23000	Long Term Loan	1,00,000
Corn Crop		99000	Outstanding Exp.	8,000
Soyabean Crop	35,000	31500	Interest Accured	480
Prepaid Fertilizer Expenses	20,000		Current operating Land Loan	87,300
Total Assets			Accumilated Interest	2,370
Breeding Live Stock
Pig	60,000
Sows	15,000
Boars	4,000
Farmland	3,15,000	480000
Machinery Equipment	2,17,000	240000
rented Crop Land	6,25,000
Building	50,000	30000
Motorboat	14,500

1. Total Farm Assets (cost value): $ 13,66,750

	Value in $
Cash	4,250
Fertilizer	17,000
Seeds	24,000
Crops Hold For Sale	24,500
Soil Samples	1,500
Soyabean Seeds	35,000
Fertilizer	20,000
Live Stock SOW	15,000
Boars	4,000
Farmland	3,15,000
Machinary equipment	2,17,000
Rented Crop Land	6,25,000
Building	50,000
Motor Boat	14,500
Total	13,66,750

2. Total Farm Assets(market Value) : $ 8,40,000

	Value in $
Building	30,000
Machinary Equipment	2,40,000
Farmland	4,80,000
Pig Live Stock	60,000
Building	30,000
Total	8,40,000

3. Total Farm Liabilities (Market Value): $ 2,82,950

	Value in $
Loan	60,000
Outstanding expenes	20,000
Accured Interest	4,800
Long term Loan	1,00,000
Outstanding expenes	8,000
Accrued Interest	480
Operating Land Loan	87,300
Accured Interest	2,370
Total	2,82,950

4. Current Ratio (Market Value): 1.16 times

Current Ratio = Current Assets / Current Liabilities

Current Assets = 23,000 + 99,000 + 31,500 + 60,000 = $ 2,13,500

Current Liabilities= 60,000 + 20,000 + 4,800 + 8,000 + 480 = $ 1,82,950

Current Ratio: = 2,13,500 / 1,82,950 = 1.16 Times   

5. Debt to Asset Ratio(Market Value): 0.29 Times

Debt = $ 2,82,950 (i.e. 1,82,950+1,00,000)

Assets= $ 9,63,500 (i.e.23,000+99000+31,500+60,000+4,80,000+2,40,000+30,000)

Debt to Asset Ratio will be: 2,82,950 / 9,63,500 = 0.29

Adjustments during month are in attached file:

Loco x 2.99960 & con in Sarage 14 on bushels Malm$ 3:25 w Sales 1oooo bushes. cost Price 2.45 Marhut fece 2usoo st: 23000 ke sem-1803D 2.346 80.closing lep Impres e soyabean's 7ooo bushel als MarketPrice 750 x 5 omso 35000 3150D ay Marketrale Livestock matrice 1200 hedday so-pound feeder pigst 12 ou 850 * 60 COD by Soo head ofpigs Cost priu a 100 sow WISD 8 boars 8 x 500 9 seed purchased at $50 per beg cost Price 300x80 $2uolo 5) Fertilizer cost price: $17,000 ISODO 300 begs of

+ Accumebtedlnterest $23 163 Additional cost of Ferkligar prepaid $ 80,000 no sold iso Jeeden pigs for $8,000 * Depeciation on Machinery and anipment Mothhet value 240,000 Building s Purchased Depreciatim $400 5600 Marhaton 30 000 Market his 489880 10 cost price 3150m Farmland Buoaches Rented Exprland saco $ 125 Ren Ar 62500$ tu 6 post nice of motorboat $ 14,50 12 current operating hoon Credit $187.500 ② Cost price of Soil Sample $1500

Out out enterest expenses $20000 (1) They owe $60000 to Ageo Credit 8 18 at owe 100000 10 67. Interest outstanding Exp. & sooo+ hnterest 480