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…
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?
What is the value of Net Income?
Book value will equal salvage value at the end of an asset’s…
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 far…
Working capital is a good measure of the solvency of the farm business.
Which of the following assets would have the same value usin…
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 b…
Please classify each of the following, each category could be used more than once.
When conducting a farm business analysis you notice your pro…
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 wit…
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 L…
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