Part I: Given the following agricultural income statements for each state, add t
ID: 2334052 • Letter: P
Question
Part I: Given the following agricultural income statements for each state, add the percentage columns to produce the common-size income statements. (14 pts.) ate Florida Kansas Income Livestock income Crop income Government payments Other farm-related income 10,414 1,878,099 928,670 38,551 200,551 384,104 3,045,871 360,689 452 12,549 Gross income Cash expenses Livestock purchases Feed Other livestock-related Seed and plants Fertilizer and chemicals Utilities Labor Fuels and oils Repairs and maintenance Machine-hire and custom work Other variable expenses 961,012,042 636,946 52,009 99,460 198,916 37,383 184,876 96,413 91,797 44,805 51,413 234,260 2,506,060 2,645 571 9,003 57,532 966 99,206 16,451 15,276 19,888 10,626 Total variable expenses Fixed expenses Real estate and property taxes Interest Insurance premiums Rent and lease payments 7,279 4,779 3,653 3,090 18,801 23,569 73,687 44,759 101,894 243,909 253,061 2,749,969 295,902 121,737 6,826 (15,045) 6,558 158,852 Total fixed expenses Total cash expenses Net cash farm income 131,043 19,137 79 Depreciation Labor, non-cash benefits Value of inventory change Non-money income 4,205 116,032 Net farm income Part II: Use the common-size statements to answer the following questions. (4 pts.) . What do the percentages indicate about differences in agricultural profitability? Explain. 2. What are the cost versus revenue proportions? Explain.Explanation / Answer
Common size income statement
Common size income statement is easier to look into the company's profit and compare it with the peers.
Category Florida Percetage Kansas Percentage Income Livestock income 10414 2.8 1878099 61.67 Crop income 360689 93.90 928670 30.49 Govt payment 452 0.11 38551 1.26 Other related income 12549 3.26 200551 6.58 Gross income 384104 100.0 3045871 100.0 Cash expenses Live stock purchase 96 0.04 1012042 41 Feed 2645 1.13 636946 26 Other livestock related 571 0.24 52009 2 Seed and plants 9003 3.84 99460 4 Fertilizer and chemical 57532 24.55 198916 8 Utilities 2966 1.26 37383 2 Labor 99206 42.34 184876 8 Fuels 16451 7.02 96413 4 Repairs 15276 6.52 91797 4 Machine hire works 19888 8.49 44805 2 Other variable expenses 10626 4.53 51413 2 Total variable expenses 234260 100.0 2506060 Fixed expenses Real estate taxes 7279 39 23569 9.66 Interest 4779 26 73687 30.21 Insurance premium 3653 20 44759 19.05 Rent payment 3090 16.43 101894 41.77 Total fixed expenses 18801 100 243909 100 total cash expenses 253061 2749969 Net cash farm income 131043 295902 Depreciation 19137 121737 Labor, non cash benefit 79 6826 Value of inventory (15045) Non money income 4205 6558 Net farm income 116032 158852