Please help Amy Fowler construct her balance sheet below, then answer the corresponding questions.  Account Receivable $17,000   Retained Earnings $120,000 Accounts Payable $15,500   Notes Payable (12 mos.) $2,000 Equipment $28,500   Prepaid Expenses $4,000 Mortgage $49,500   Land $5,000 Contributed Capital $56,000   Bank Loan on Equipment $90,000   Amy Folwer Farms Balance Sheet as of October 11, 2018 Current Assets         Total Current          Assets Noncurrent Assets        Total Noncurrent     Assets TOTAL ASSETS   Current Liabilities        Total Current         Liabilities Noncurrent Liabilities         Total Noncurrent     Liabilities  TOTAL NONCURRENT LIABILITIES    Owner’s Equity          Total Owner’s        Equity  TOTAL LIABILITIES AND OWNER’S EQUITY

Which type of farm business entity must file and pay income taxes separately from the personal tax returns of the owners?

What is the value of Net Income?

Book value will equal salvage value at the end of an asset’s useful life.

Working capital is a good measure of the solvency of the farm business.

Which of the following assets would have the same value using either a cost or market basis valuation?

Please classify each of the following, each category could be used more than once. 

When conducting a farm business analysis you notice your profitability is unsatisfactory, which 2 factors should you check?

Current liabilities are debts which must be paid in full within one year from the date of the balance sheet.

USEFUL EQUATIONS: Current Ratio= Current Assets / Current Liabilities  Working Capital= Current Assets – Current Liabilities   Debt to Asset Ratio= Total Liabilities / Total Assets  Equity to Asset Ratio= Total Equity / Total Assets  Debt to Equity Ratio (Leverage Ratio)= Total Liabilities / Total Equity   Debt Structure Ratio: Current Liabilities / Total Liabilities   Valuation Equity: Book Value – Market Value   ROA= Return to Assets / Average Assets  ROE= Return to Equity / Average Equity   Operating Profit Margin Ratio (OPM): Operating Profit / Gross Revenue   Straight-Line Depreciation: (Book Value- Salvage Value) / Useful Life  Declining Balance Depreciation: (Book Value at Start of Year) * R  R= 100/Useful Life