Question L: A farmer reports the following financial information for 2020 operation: Current assets Net worth, end of year Depreciation. Operating expenses . **** Ratio of total liabilities to net worth 200,000 200,000 20,000 60,000 3 ... Proprietor withdrawals Change in inventory Capital purchases Operating receipts Noncurrent assets 50,000 30,000 40,000 200,000 400,000 100,000 - ....... ..... ............. ........ A........................ ..... ...... ......E ........ Current liabilities a. Use this information to formulate an annual income statement. b. Complete the year-end balance sheet. Assets Liabilities & Net Worth Current Current Noncurrent Noncurrent Net Worth Total Total c. Indicate the beginning-of-year net worth.
Question L: A farmer reports the following financial information for 2020 operation: Current assets Net worth, end of year Depreciation. Operating expenses . **** Ratio of total liabilities to net worth 200,000 200,000 20,000 60,000 3 ... Proprietor withdrawals Change in inventory Capital purchases Operating receipts Noncurrent assets 50,000 30,000 40,000 200,000 400,000 100,000 - ....... ..... ............. ........ A........................ ..... ...... ......E ........ Current liabilities a. Use this information to formulate an annual income statement. b. Complete the year-end balance sheet. Assets Liabilities & Net Worth Current Current Noncurrent Noncurrent Net Worth Total Total c. Indicate the beginning-of-year net worth.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 1 has sublets a,b,c
Transcribed Image Text:Question L: A farmer reports the following financial information for 2020 operation:
200,000
200,000
20,000
60,000
Current assets
Net worth, end of year
Depreciation
Operating expenses
Ratio of total liabilities to net worth
Proprietor withdrawals
Change in inventory
Capital purchases
Operating receipts
50,000
30,000
40,000
200,000
400,000
100,000
.... .. ...... ...
Noncurrent assets
Current liabilities
a. Use this information to formulate an annual income statement.
b. Complete the year-end balance sheet.
Assets
Liabilities & Net Worth
Current
Current
Noncurrent
Noncurrent
Net Worth
Total
Total
c. Indicate the beginning-of-year net worth.
1
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Step 1Basic Information
The question is related to Ratio Analysis and with the help of Ratio Analysis we have to prepare annual income Statement, Balance Sheet and begnning of the year net worth.
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