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Use the information below to construct a balance sheet for January 1, 2019. Then answer the...

Use the information below to construct a balance sheet for January 1, 2019. Then answer the questions that follow.

  • Accounts payable $12,000
  • Accounts receivable $8,250
  • Accrued interest on land loan of $2,000
  • Breeding livestock (raised) $165,000
  • Checking account balance $17,500
  • Crops $125,000
  • Machinery and equipment $275,000
  • Market livestock $115,000
  • Net present value of land $1,500,000
  • Principal loan payment on land of $40,000 leaving a remaining balance of $920,000
  • Taxes payable $17,000

What was the farm's current ratio? [6]

What was the farm's working capital? [7]

What was the farm's debt to equity ratio? [8]

Which of the three financial indicators calculated in 6-8 above is/are a measure of solvency, if any? [9]

If we were to only consider the current ratio, which financial position would this firm be in? [10]

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hi...i tried my level best..if you have any doubt please comment me...thank you

jeff jeffy answered 1 year ago
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