Homework Help Question & Answers

$ 145,600 Use the following information for Longliew Farms to answer problem 5. Crops & feed...

$ 145,600 Use the following information for Longliew Farms to answer problem 5. Crops & feed revenue Livestock and livestock

$ 145,600 Use the following information for Longliew Farms to answer problem 5. Crops & feed revenue Livestock and livestock product revenue Total nonfarm income Total farm operating expenses Depreciation expense Income tax expense Interest expense Withdrawals for family living Principal payments on unpaid operating debts Principal payments on current portions of debt & leases 215,300 12,000 252,629 50,526 10,827 64,962 28,000 29,890 a) Calculate capital replacement and term debt repayment capacity for LongView Farms. b) Calculate capital replacement and term debt repayment margin (CRDRM) for Long View Farms. c) Estimate the percent that crop revenue and livestock revenue can decline and still maintain positive CRDRM. d) Estimate the percent operating expenses and interest expenses can increase and still maintain positive CRDRM.
0 0
Add a comment
Answer #1

Answer -

Calculation of Net Farm Income from Operations as -

Gross Farm Revenues -

Crop and feed Revenues

Livestock and Livestock Product Revenues

$145,600

$ 215,300

$360,900

Less : - Total farm operating expenses ($252,629)
EBITDA $108,271
Less : - Interest Expense ($64,962)
Net Farm Revenue from Oprations $43309

Calculation of Capital Debt Repayment Capacity & Margin and Replacement Margin as -

Net Farm Revenue from Oprations 1 $43309
Total Non-farm Income 2 $12000
Interest Expense on Term Debt 3 0
Depreciation Expense 4 $50526
Family Expense 5 $28000
Income tax Expense - self 6 $10827

Capital Debt Replacement Capacity [(1+2+3+4)-(5+6)]

7 $67008
Principle payment of Debt & Leases 8 $29890
Unpaid Oprating Debts 9 0

Capital Debt Repament Margin [7-(3+8+9)]

10 $38000
Cash Used for Capital Replacement 11

0

Replacement Margin (10-11)

12 $38000

Term Debt & Capital Lease Coverage Ratio [7/(3+8+9)

13 224.18%

Replacement Margine Coverage Ratio [7/(3+8+9+11)

14 224.18%
Add a comment
Know the answer?
Add Answer to:
$ 145,600 Use the following information for Longliew Farms to answer problem 5. Crops & feed...
Your Answer:

Post as a guest

Your Name:
What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • given: Calculate all of the missing performance measures in the sheet “Performance Measures for Vandelay Farms"...

    given: Calculate all of the missing performance measures in the sheet “Performance Measures for Vandelay Farms" seen below. “CF” is the statement of cash flow summary for Vandelay Farms. Based on the performance ratios, is Vandelay Farms in any kind of financial trouble? Why or why not? We were unable to transcribe this imageWe were unable to transcribe this imageStatement of Cash Flow Summary for Vandelay Farms Pro farma Cash flows from operating activities 2018 Cash received from farm production...

  • Given the above Finacail Statemtns, Calculate all of the missing performance measures in sheet “PM” (below)...

    Given the above Finacail Statemtns, Calculate all of the missing performance measures in sheet “PM” (below) for Vandelay Farms.“CF” is the statement of cash flow summary for Vandelay Farms. Based on the performance ratios, is Vandelay Farms in any kind of financial trouble? Why or why not? Balance Sheet Summary for Vandelay Farms Historica Pro 2017 Current assets Cash, savings, and marketable securities Crops, feed, and supplies Market livestock Accounts receivable Other current assets All personal assets Total current assets...

  • Review Problems 1 Given the following financial information, calculate the missing values $1,000 95,000 Cash Crop...

    Review Problems 1 Given the following financial information, calculate the missing values $1,000 95,000 Cash Crop revenue Grain inventory Total operating expenses Prepaid expenses Notes payable Accrued interest Interest expense Supplies Owner equity 200 10,000 Machinery and equipment Farm real estate Total current assets $75,000 Total current liabilities 150,000 Accounts payable 17,500 Cash investment in growing 14,000 crops 2.000 Net farm income from 800 operations 27,000 Current portion of noncurrent 1.500 debt Deferred portion of noncurrent debt 10,000 500 138,500...

  • complete the following balance sheet. Assets 12/31/2018 12/31/2019 Change Cash $25,000 $35,000 Marketable Securities $10,000 $15,000...

    complete the following balance sheet. Assets 12/31/2018 12/31/2019 Change Cash $25,000 $35,000 Marketable Securities $10,000 $15,000 Accounts Receivable $1,500 $1,500 Fertilizer and Supplies $500 $25,000 Investments in Growing Crops $48,500 $86,000 Crops held for Sale and Feed $12,000 $8,000 Market Livestock $75,000 $115,000 Total Current Assets Breeding Livestock $45,000 $35,000 Machinery and Equipment $350,000 $315,000 Buildings $75,000 $85,000 Investments in Cooperatives $2,000 $2,000 Land $500,000 $525,000 Total Non-Current Assets Total Assets Flag this Question Question 211.5 pts Complete the following...

  • · Use the following information to calculate value of farm production, total farm operating expenses, interest...

    · Use the following information to calculate value of farm production, total farm operating expenses, interest expense, net farm income from operations ands owner equity. Use the value of farm production format. Crop sales of new crop Crop sales of old crop Change in crop inventory from 1/10 to 12/10 Change in accounts payable from 1/10 to 12/10 Change in accounts receivable from 1/10 to 12/10 Government payments received in 2010 Cash received for sale of tractor Market livestock purchases...

  • Given the following financial information, calculate the missing values: $1,000 95,000 Cash Crop revenue Grain inventory...

    Given the following financial information, calculate the missing values: $1,000 95,000 Cash Crop revenue Grain inventory Total operating expenses Prepaid expenses Notes payable Accrued interest Interest expense Supplies Owners' equity Machinery and equipment Farm real estate Total current assets Total current liabilities Accounts payable Cash investment in growing crops Net farm income Current portion of long-term debt Deferred portion of long-term debt $75,000 150,000 17,500 14,000 2,000 800 27,000 1,500 200 10,000 10,000 500 138,500

  • Use the following information to calculate value of farm production, total farm operating expenses, interest expense,...

    Use the following information to calculate value of farm production, total farm operating expenses, interest expense, net farm income from operations ands owner equity. Use the value of farm production format. Crop sales of new crop Crop sales of old crop Change in crop inventory from 1/10 to 12/10 Change in accounts payable from 1/10 to 12/10 Change in accounts receivable from 1/10 to 12/10 Government payments received in 2010 Cash received for sale of tractor Market livestock purchases Feed...

  • Use the following information to calculate value of farm production, total farm operating expenses, interest expense,...

    Use the following information to calculate value of farm production, total farm operating expenses, interest expense, net farm income from operations and owner’s equity. Use the value of farm production format. Crop sales of new crop Crop sales of old crop Change in crop inventory from 1/10 to 12/10 Change in accounts payable from 1/10 to 12/10 Change in accounts receivable from 1/10 to 12/10 Government payments received in 2010 Cash received for sale of tractor Market livestock purchases Feed...

  • The following information relates to Paris Cosmetics. Ltd. for the year 2017 (1/1/2017). Cash…………………………………….       €1,686 Short...

    The following information relates to Paris Cosmetics. Ltd. for the year 2017 (1/1/2017). Cash…………………………………….       €1,686 Short term investments………………...        1,277 Accounts Payable……………………….       7,840 Accounts Receivable……………………       2,670 Inventory……………………………….       5,638 Intangible Assets……………………….       2,694             Current borrowings……………………..          500 Non-current borrowings………………...       1,683 Property Plant and Equipment…………        23,316 Share Capital-Ordinary…………………       24,594 Retained Earnings………………………       ? Instructions: Prepare the journal entries for each of the transactions. (4 points each) Paid mortgages of €686, €252 of which was interest and the remainder of which was repayment of principal.(Hint: think about...

  • The following information relates to Paris Cosmetics. Ltd. for the year 2017 (1/1/2017). Cash…………………………………….       €1,686 Short...

    The following information relates to Paris Cosmetics. Ltd. for the year 2017 (1/1/2017). Cash…………………………………….       €1,686 Short term investments………………...        1,277 Accounts Payable……………………….      7,840 Accounts Receivable……………………      2,670 Inventory……………………………….       5,638 Intangible Assets……………………….       2,694             Current borrowings……………………..          500 Non-current borrowings………………...      1,683 Property Plant and Equipment…………        23,316 Share Capital-Ordinary…………………      24,594 Retained Earnings………………………       ? Instructions: Prepare the journal entries for each of the transactions. Paid mortgages of €686, €252 of which was interest and the remainder of which was repayment of principal.(Hint: think about what kind of...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.