{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

AEB 3143 Agricultural Finance Mini Project 2

AEB 3143 Agricultural Finance Mini Project 2 - Part A 1A...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Part A: 1A. Kashney’s Tomato Farm Balance Sheet   2006 2007 2008 2009 2010 Current Assets Cash $4,000 $6,000 $8,000 $10,000 12,000 Savings & Short-Term Time Deposits $10,050 $12,050 $14,050 $16,050 $18,050 Accounts Receivables $13,000 $15,000 $17,000 $19,000 $21,000 Inventories: Livestock $110,000 $112,000 $114,000 $116,000 $118,000 Crops $2,000 $4,000 $6,000 $8,000 $10,000 Feed $1,000 $3,000 $5,000 $7,000 $9,000 Supplies & Other $0 $0 $0 $0 $0 Prepaid Expenses $40,000 $42,000 $44,000 $46,000 $48,000 Total Current Assets $180,050 $194,050 $208,050 $222,050 236,050 Noncurrent Assets Breeding Livestock (at market) $50,000 $52,000 $54,000 $56,000 58,000 Machinery & Equipment (at market) $250,000 $252,000 $254,000 $256,000 258,000 Investments In Cooperatives $14,000 $16,000 $18,000 $20,000 22,000
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Retirement Accounts $20,000 $22,000 $24,000 $26,000 28,000 Land $500,000 $502,000 $504,000 $506,000 508,000 Buildings & Improvements $25,000 $27,000 $29,000 $310,000 312,000 Other Noncurrent Assets: Personal $30,000 $32,000 $34,000 $36,000 38,000 Total Noncurrent Assets $889,000 $903,000 $917,000 $1,210,000 1,224,000 Currrent Liabilities Accounts Payable $10,000 $12,000 $14,000 $16,000 $18,000 Notes Payable $94,000 $96,000 $98,000 $100,000 $102,000 Income & Social Security $12,000 $14,000 $16,000 $18,000 $20,000 Deferred Taxes $62,000 $62,000 $64,000 $66,000 $68,000 Other Current Liabilities $1,000 $3,000 $5,000 $7,000 $9,000 Total Current Liabilities $179,000 $187,000 $197,000 $207,000 $217,000   Noncurrent Liabilities Notes w/ Original Maturity $42,000 $44,000 $46,000 $48,000 $50,000 Notes 10 Years Maturity $230,000 $232,000 $234,000 $236,000 $238,000 Noncurrent Deferred Taxes $30,000 $32,000 $34,000 $36,000 $38,000 Total Noncurrent Liabilities $302,000 $308,000 $314,000 $320,000 $326,000  
Image of page 2
Owner's Equity Contributed Capital $90,000 $92,000 $94,000 $96,000 $98,000 Retained Earnings $315,000 $317,000 $319,000 $321,000 $323,000 Market Gain $151,000 $153,000 $155,000 $157,000 $159,000 Valuation/Personal Asset Equity $10,000 $12,000 $14,000 $16,000 $18,000 Total Owner's Equity $566,000 $574,000 $582,000 $590,000 $598,000 Income Statement Year 2006 2007 2008 2009 Farm Revenue Cash Receipts $460,000 $462,000 $464,000 $466,000 Inventory Adjustments $14,000 $16,000 $18,000 $20,000 Cash Receipts $132,000 $134,000 $136,000 $138,000 Inventory Adjustments $18,000 $20,000 $22,000 $24,000 Gov't Payments & Other Farm Income $28,000 $30,000 $32,000 $34,000 Change in Accounts Receivable $4,000 $6,000 $8,000 $10,000 Gross Revenue $656,000 $668,000 $680,000 $692,000 Less: Purchases of Market Livestock Cost of Purchased Feed/Grain & Livestock -$103,000 -$105,000 -$107,000 -$109,000
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Value of Farm Production $553,000 $563,000 $573,000 $583,000 Farm Expenses Cash Operating Expenses $350,000 $352,000 $354,000 $356,000 Change in Accounts Payable $9,000 $11,000 $13,000 $15,000 Change in Prepaid Expenses -$2,000 -$4,000 -$6,000 -$8,000 Depreciation $34,000 $36,000 $38,000 $40,000 Total Farm Operating Expenses $391,000 $395,000 $399,000 $403,000 Amount of Interest Paid In Cash $30,000 $32,000 $34,000 $36,000 Change in Accrued Interest -$1,000 -$3,000 -$5,000 -$7,000 Total Interest Expense $420,000 $422,000 $424,000 $426,000 Total Farm Expense $420,000 $422,000 $424,000 $426,000 Net Income From Operations $29,000 $31,000 $33,000 $35,000 Net Farm Income Before Taxes $29,000 $31,000 $33,000 $35,000 Wages $30,000 $32,000 $34,000 $36,000 Interest & Dividend Income $1,000 $3,000 $5,000 $7,000 Total Nonfarm Income $30,000 $34,000 $38,000 $42,000
Image of page 4
1B. i. The parameters named that I would use to evaluate the performance of my business would be outlined through the Strategic Management Process outlined previously in the semester. I would: a. Define & develop my firm’s mission: i. This would include my future direction of the firm, while articulating my mission statement & help answer the questions: 1. What business/businesses are we in?
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern