Reference no: EM132513651

Use the information below to construct a balance sheet for January 1, 2019. Then answer the questions that follow.

Accounts payable $12,000
Accounts receivable $8,250
Accrued interest on land loan of $2,000
Breeding livestock (raised) $165,000
Checking account balance $17,500
Crops $125,000
Machinery and equipment $275,000
Market livestock $115,000
Net present value of land $1,500,000
Principal loan payment on land of $40,000 leaving a remaining balance of $920,000
Taxes payable $17,000

Question 1: What was the total value of intermediate assets on January 1, 2019?

Question 2: What was the total value of assets on January 1, 2019?

Question 3: What was the total value of current liabilities on January 1, 2019?

Question 4: What was the total value of liabilities on January 1, 2019?

Question 5: How much profit did the farm make as of January 1, 2019?

Question 6: What was the farm's current ratio?

Question 7: What was the farm's working capital?

Question 8: What was the farm's debt to equity ratio?

Question 9: Which of the three financial indicators calculated in 6-8 above is/are a measure of solvency, if any?

Question 10: If we were to only consider the current ratio, which financial position would this firm be in?