4. i. ii. Explain how the DuPont system can be used to diagnose operating difficulties in a farm firm. How does the use

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4 I Ii Explain How The Dupont System Can Be Used To Diagnose Operating Difficulties In A Farm Firm How Does The Use 1 (107.29 KiB) Viewed 24 times

4. i. ii. Explain how the DuPont system can be used to diagnose operating difficulties in a farm firm. How does the use of common sized income statements and balance sheets compare with the use of the DuPont system? Compute the DuPont expansion for the dairy farm presented in Table 4.4 and Table 4.5 iii. Table 4.4 Balance sheets for dairy farms in 2010 and 2009. Item 2010 2009 1,584,053 152,465 24,541 7,012 25,413 70.266 9.453 Total assets Current assets Cash Accounts receivable Livestock inventory Crop inventory Purchased inputs Growing crops Prepaid insurance Non-current assets Investments in cooperatives Land and buildings Farm equipment Breeding animals Farm liabilities Current Net Notes payable within one year Current Current portion of term debt Accrued interest Accounts payable Non-current Non-real estate Real estate Farm equity 622 15.158 130 1.431,590 9,555 108,130 187,113 1,045,199 189,723 1,464,040 153,140 26,591 7,597 29,975 61,335 32 10.897 10,097 1.190 15.555 1,310,900 10,210 941,028 187,979 171,683 269,860 50 566 59,566 16626 16,636 31,417 7,750 3,762 210,294 58,078 152.216 93,234 289,983 5520 55,278 0522 9,533 22 10 33,129 8,321 4.295 234,705 56,858 177.848 Table 4.5 Income statement for Wisconsin dairy farms in 2010. Item Amount Gross cash income Livestock income 353,174 318,586 Crop sales 23,018 4,912 6,658 Government payments Other farm-related income Total cash expenses voishia Variable expenses Livestock purchases Feed Other livestock-related 2 Seed and plants Edit: Fertilizer and chemicals The 267,892 228,803 98 903 22 276 71.422 22.802 1111 11,175 113 16,113 בין Utilities 9987 Recls and oils Fuels : Repairs and maintenance Machine hire and custom work Other variable expenses Fixed expenses Real estate and property taxes Interest Insurance premiums Rent and lease payments Net cash farm income Depreciation Net income 16 32,123 14,509 18,892 10 15.405 16.099 39,089 5,121 16,269 5,871 11.829 85.282 31,492 53,790 END OF ASSIGNMENT