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10-1 Conduct a horizontal analysis on the Farmers' balance sheet in Table 10-1. Using the data below, conduct a trend analysis on their balance sheet. How would you evaluate the results? Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity 20X1 $16,403 773,253 59,820 265,988 507,265 20X2 $ 17,800 763,150 45,500 190,500 572,650 10-2 a. Take the position of a creditor and list the information that you think you might be interested in to evaluate the liquidity, solvency, and repayment capacity of a farm business. Term Debt and Capital Lease Coverage Ratio Capital replacement and term debt repayment margin 20X3 $ 20,100 750,650 38,600 b. Take the position of an owner of a farm business and list the information that you think you might be interested in to evaluate the profitability and financial efficiency of your farm business. 180,900 569,750 10-3 Using the data in Problem 10-1, analyze the liquidity of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X1 10-4 Using the data in Problem 10-1, analyze the solvency of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 10-5 Comment on the repayment capacity of the Farmers' business below. 175% 20X4 $18,600 768,200 28,500 240,000 528,200 20X3 20X2 180% 20X3 165% $20,249 $30,500 $18,400 10-6 Using the data in Problem 10-1 and the data below, analyze the profitability of the Farmers' business for 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X4

10-1 Conduct a horizontal analysis on the Farmers' balance sheet in Table 10-1. Using the data below, conduct a trend analysis on their balance sheet. How would you evaluate the results? Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity 20X1 $16,403 773,253 59,820 265,988 507,265 20X2 $ 17,800 763,150 45,500 190,500 572,650 10-2 a. Take the position of a creditor and list the information that you think you might be interested in to evaluate the liquidity, solvency, and repayment capacity of a farm business. Term Debt and Capital Lease Coverage Ratio Capital replacement and term debt repayment margin 20X3 $ 20,100 750,650 38,600 b. Take the position of an owner of a farm business and list the information that you think you might be interested in to evaluate the profitability and financial efficiency of your farm business. 180,900 569,750 10-3 Using the data in Problem 10-1, analyze the liquidity of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X1 10-4 Using the data in Problem 10-1, analyze the solvency of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 10-5 Comment on the repayment capacity of the Farmers' business below. 175% 20X4 $18,600 768,200 28,500 240,000 528,200 20X3 20X2 180% 20X3 165% $20,249 $30,500 $18,400 10-6 Using the data in Problem 10-1 and the data below, analyze the profitability of the Farmers' business for 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10-1 Conduct a horizontal analysis on the Farmers' balance sheet in Table 10-1. Using the data below, conduct a trend analysis on their balance sheet. How would you evaluate the results? Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity 20X1 $ 16,403 773,253 59,820 265,988 507,265 20X2 $ 17,800 763,150 45,500 190,500 572,650 10-2 a. Take the position of a creditor and list the information that you think you might be interested in to evaluate the liquidity, solvency, and repayment capacity of a farm business. Term Debt and Capital Lease Coverage Ratio Capital replacement and term debt repayment margin 20X3 $ 20,100 750,650 38,600 180,900 569,750 b. Take the position of an owner of a farm business and list the information that you think you might be interested in to evaluate the profitability and financial efficiency of your farm business. 10-3 Using the data in Problem 10-1, analyze the liquidity of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X1 20X4 $ 18,600 768,200 10-4 Using the data in Problem 10-1, analyze the solvency of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 10-5 Comment on the repayment capacity of the Farmers' business below. 20X2 175% 28,500 240,000 528,200 20X3 180% 20X3 165% $20,249 $30,500 $18,400 10-6 Using the data in Problem 10-1 and the data below, analyze the profitability of the Farmers' business for 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X4
Transcribed Image Text:10-1 Conduct a horizontal analysis on the Farmers' balance sheet in Table 10-1. Using the data below, conduct a trend analysis on their balance sheet. How would you evaluate the results? Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity 20X1 $ 16,403 773,253 59,820 265,988 507,265 20X2 $ 17,800 763,150 45,500 190,500 572,650 10-2 a. Take the position of a creditor and list the information that you think you might be interested in to evaluate the liquidity, solvency, and repayment capacity of a farm business. Term Debt and Capital Lease Coverage Ratio Capital replacement and term debt repayment margin 20X3 $ 20,100 750,650 38,600 180,900 569,750 b. Take the position of an owner of a farm business and list the information that you think you might be interested in to evaluate the profitability and financial efficiency of your farm business. 10-3 Using the data in Problem 10-1, analyze the liquidity of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X1 20X4 $ 18,600 768,200 10-4 Using the data in Problem 10-1, analyze the solvency of the Farmers' business in 20X3 and 20X4. Include an interpretation of your ratio calculations. 10-5 Comment on the repayment capacity of the Farmers' business below. 20X2 175% 28,500 240,000 528,200 20X3 180% 20X3 165% $20,249 $30,500 $18,400 10-6 Using the data in Problem 10-1 and the data below, analyze the profitability of the Farmers' business for 20X3 and 20X4. Include an interpretation of your ratio calculations. 20X4
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