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Question: balance sheet i rhonda rancher has applied for a loan...

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BALANCE SHEET I. Rhonda Rancher has applied for a loan. Her banker, Larry Loanmaker, says the old balance sheet on file must be brought up to date before a loan will be considered. Rhonda spends the rest of the afternoon taking inventory and gathering other information. Complete a balanee sheet on a separate page using the information below compiled by Rhonda on January 22, 2019. 3500 bu. @ $5.00 per bu. 100 tons @ $80.00 per ton Grain on hand Hay on hand Growing wheat Farm mortgage (due/4/1/19) Buildings & improvements Note payable on feeder cattle (all due 4/15/19) Calves (to be sold in May 2019) Feeder cattle (to be sold in 60 days) Note payable at bank (all due 3/1/019) Vehicles Other machinery & equipment Loan on beef cows (due 10/01/19) 200 acres @ S69.80 per acre $13,000 principal $10,000 accrued interest balance after 4/01/19 payment $260,000 $68,000 $45,000 100 head@$605 per head 125 head @ $800 per head $82,000 $30,500 $130,500 $12,000 principal, 2,200 accrued interest balance after 10/1/15 payment $34,000 Land (present market value) Beef breeding cows Bulls Checking account balance Account payable at Joes Feed & Seed Account receivable Shop Equip. (welder, lathe, drill press, etc.) Corporate Stock 1000 acres @$1800 per acre 110 head @ $1000 per head 4 head @ $2,200 each $33,400 S6,500 $3,600 $5,000 100 shares @ $90 per share Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May, 2019. 1) 2) Income and social security taxes on 2018 income (not yet paid) are estimated at $14,200. 3) Rhonda contributed $590,000 to get her business started 4) Retained earnings since the beginning of the business equals $655,000.
1. What is Rhondas owners equity as of January 22, 2019? Answer- 2. How much working capital does Rhonda have Answer 3. What is her current ratio? Answer 4. What is her debt/asset ratio? Answer 5. What is her debt/equity ratio? Answer 6. What is her equity/asset ratio? Answer 7. Assume you are a financial consultant hired by Rhonda to analyze her financial condition. Based on this balance sheet, what part of her financial condition is most in need of improvement? WHY? 8. What does this balance sheet tell you about the amount of profit Rhonda made in 2013?
9. Rhonda wants to borrow $40,000 from the bank to buy additional beef breeding cows. They will cost $40,000. Assume the loan is made, the cows are purchased. a) What will Rhondas owners equity be immediately after the transactions are completed if there are no other changes on her balance sheet? Answer b) What will her debt/asset ratio be? Answer c) What will be her debt/equity ratio be? Answer 10. If you were Larry Loanmaker, would you lend Rhonda the money? Why?
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