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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

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 81E
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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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