Name: Income Statement Hereford Hank saw his banker at the coffee shop and mentioned that you...
Name: Income Statement Hereford Hank saw his banker at the coffee shop and mentioned that you were preparing his balance sheet for his upcoming loan review. His lender told him that he also needed some evidence of profitability in the operation. Accordingly, Hank has now asked you to construct an adjusted accrual income statement for the past year ending December 31, 2018. He was able to retrieve the following information from the extensive filing system that he keeps in the glove box of his pickup • Sold 200 ton of alfalfa in September for $45,000 • Sold 55 heifer calves in October for $50,750 Sold 10 cull cows (raised) in January for $25,500 Sold 200 steers and heifers in March for $123,000 Paid Nephew $8,540 for labor during the summer Total feed purchased throughout the year summed to $63,170 Total fuel, repairs, and supplies paid were $47,272 Increase accounts payable at the farm supply store by $7,000 Machinery depreciated $42.000 Paid $54,256 in interest on loans Added 15 tons of alfalfa to your inventory (valued at $50 per ton) Reduced steer & heifer calve inventory by 30 head (valued at $685 per head) Create an income statement to identify his Net Farm Income.