Use the following information to develop both a beginning and ending year (Janua
ID: 2554301 • Letter: U
Question
Use the following information to develop both a beginning and ending year (January 1 2017, and January 1 201 18) balance sheet for this example crop and stocker cattle farm. I would strongly recommend using the OSU example balance sheet simple template that is posted to the D21 site for this class, or a similar spreadsheet template, because later on we are going to need the differences between beginning and ending values (so if you use a spreadsheet template it will do the calculations for you) to calculating some ratio that utilize the averages This will be part one of a few assignments we will build on using this example farm Whatever mechanism you use, save your final result with a unique file name somewhere that you can access it later (thumb drive, your computer, cloud, etc.), print out your resulting balance sheet and turn in with your name on it. January 1, 2017 inventories: Cash and checking account balance $112,250.00. Accounts receivable $7,000.00 Supplies on hand $1,500.00. Investment in growing wheat and canola $120,000 (1000 acres at $120.00). Grain on hand $70,000.00 (22,000 bu. at $3.18/bu). Stocker cattle on wheat pasture $573,750.00 (450 hd. At $1,275.00 each) Machinery and equipment value $685,375.00. Building value $125,000.00. Owned land value $1,275,000.00. Operating loan balance $83,200.00, and stocker cattle loan balance $510,000.00 (depending on the template you use, these will likely be combined on one line as a current liability). Accounts payable $3,000.00. Accrued interest $22,000.00. Machinery loan total balance $395,000.00, with $65,8 principle due within next year. Real estate loan balance $292,500.00, with $7,600.00 principle due within next year. January 1, 2018 inventories: Cash and checking account balance $105,250.00. Accounts receivable $12,000.00. Supplies on hand $2,000.00. Investment in growing wheat and canola $120,000 (1000 acres at 120.00). Grain on hand $68,000.00 (19,000 bu. at $ (450 hd. At $1,175.00 e Owned land value $1,200,000.00. Operating loan balance $93,000.00, and stocker cattle loan balance $475,200.00 (again, depending on the template you use these may be combined on one line as a current liability). Accounts payable $6,500.00. Accrued interest $21,000.00. Machinery loan total b S349,166.00, with $66,545.00 principle due within next year. Real estate loan balance $284,900.00, with $7,675.00 principle due within next year. 3.58/bu). Stocker cattle on wheat pasture $528,750.00 ach). Machinery and equipment value $637,375.00. Building value $125,000.00 alanceExplanation / Answer
Crop and stocker Cattle Farm Balance Sheet 1-Jan-17 1-Jan-18 Current Asset Cash and checking account $112,250 $105,250 Accounts Receivables $7,000 $12,000 Supplies on hand $1,500 $2,000 Investment in growing wheat and canola $120,000 $120,000 Grain on hand $70,000 $68,000 Stocker cattle on wheat pasture $573,750 $528,750 Total Current Assets $884,500 $836,000 Non-current assets Machinery and equipments $685,375 $637,375 Building $125,000 $125,000 Owned Land $1,275,000 $1,200,000 Total non-current assets $2,085,375 $1,962,375 Total Assets (A) $2,969,875 $2,798,375 Current Liabilities Operating loan $83,200 $93,000 Stocker cattle loan $510,000 $475,200 Accounts payable $3,000 $6,500 Accrued Interest $22,000 $21,000 Current portion of Machinery Loan $65,834 $66,545 Current portion of Real Estate Loan $7,600 $7,675 Total Current Liabilities $691,634 $669,920 Non-current Liabilities Machinery Loan $329,166 $282,621 Real estate loan $284,900 $277,225 Total non-current liabilities $614,066 $559,846 Total Liabilities (B) $1,305,700 $1,229,766 Owner's Equity (A-B) $1,664,175 $1,568,609