Calculate the financial health of a farm business.
Calculation should include
- using data from the balance sheet, income statement, and cash flow statement to determine
- net worth
- profitability
- profit margin
- net profit margin
- gross profit margin
- operating profit margin
- financial ratios, financial metrics, and other measures of performance (e.g., liquidity, operating efficiency, solvency)
- return on equity (ROE)
- return on assets (ROA)
- internal rate of return (IRR)
- cash flow yield
- net present value (NPV)
- appraisal value of farm assets
- computation of farm liabilities.
Process/Skill Questions:
- How would one construct a balance sheet?
- How would one analyze a balance sheet for liquidity and solvency?
- How is an income statement used to determine net profit margin?