BALANCE SHEET Cove Farms 16-Sep-17 FARM ASSETS FARM LIABILITIES Curreat Assets C
ID: 2539578 • Letter: B
Question
BALANCE SHEET Cove Farms 16-Sep-17 FARM ASSETS FARM LIABILITIES Curreat Assets Cliquid within 12 month) Farm cash/checking/savings Accounts receivable Crop and feed invent Market livestock (raised& purchased) $1,789 S3.572 ory(growingandstred) -S10985 Current Liabilities (due within 12 months) Accounts payable *Accrued (unpaid) interest not included above $4,985 - ncome taxes and Social Security taxes payable $275 $500 $8301 Principal due within 12 mos. on long-term debt 550 Operating loan principal balance inventory Farm supplies on hand Prepaid expenses $5,239 $2,455 $2,455 Operating loan principal balance Other farm products on hand for sale Farm products stored for personal use $375 Short-term loan principal balance Short-term loan principal balance Principal due within 12 mos. on intermediate debt Other current liabilities (describe) $2,274 Other current assets (describe) Total Current Assets $21,056 Total Current Liabilities S15,228 Intermediate Assets (held 1 to 10 years avg.) Intermediate Liabilities (due 1 to 10 yrs. avg) Raised breeding livestock Purchased breeding livestock Farm machinery Farm equipment Farm vehicles Book value of capital lease(s) Other intermediate assets (describe) Total Intermediate Assets S50,000 Intermediate loan principal balance Intermediate loan principal balance $125,000 Intermediate loan principal balance $2,000 Intermediate loan principal balance $3,750 Intermediate loan principal balance S69,221 $20,007 $5,982 Capital lease payments due (discount for interest) Other intermediate liabilities (describe) Total Intermediate Liabilities $180,750 S95,210 Long-term Assets Farmland Farm buildings and Farmhouse Long-term Liabilities $150,775 Long-term loan principal balance $45,777 | Long-term loan principal balance $125,000 Long-term loan principal balance S121,250 $149,006 vements Other long term assets (describe) Other long-term liabilities (describe) $270,256 Total Long-term Assets $321,552 Total Long-term LiabilitiesExplanation / Answer
Total assets =$523358
Total liabilities=$380694
Equity=Assets-Liabilities
=$142664
6. Equity/asset ratio=$ 142664/$523358=0.27
7. Debt /Asset +Equity/ asset =(Debt+ equity)/asset=( $380694+$142664)/$523358
=$523358/$523358=1
8. Weakest part is company have not taken advantage of trading over equity.
Aslong term debt/equity ratio is 1.89:1
($270256/$142664)
The company could have raised its debts to take full advantage upto ratio of 2:1
9 net worth.= Assets-Liabilities will be same as both assets and liabilities increased by a constant amount of $6000
So net worth is $142664
B. Debt to asset ratio= $386694/$529358= 0.73
10. The decision of granting the loan depends upon the amount of loan required by the company. Also the projections of the company will be taken into consideration while granting the loan. As far as other financial data is concerned , company appears to be well financed company and can meet its obligation timely. The loan can be granted.
Pls give your feedback!! Happy Learning :)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.