The following information pertains to a farm in the Rio Grande Valley. Cash receipts from farm $500,000 marketings Receipts of government $100,000 payments Other income from farm sources $50,000 Production expenses $300,000 Value of real estate assets $10,000,000 Value of non-real estate assets $1,000,000 Financial assets $5,000,000 Liabilities $8,000,000 a. Net farm income for this operation is $ b. The equity for this operation is $

(A) $350,000

(B) $8,000,000

Explanation:

The following information was gotten from a farm in the Rio Grande Valley

Cash receipts from farm is $500,000

Marketings Receipts of government is $100,000

Payments other income from farm sources $50,000

Production expenses is $300,000 Value of real estate assets is $10,000,000

Value of non-real estate assets is $1,000,000

Financial assets is $5,000,000

Liabilities is $8,000,000

(A) The net income farm income for this operation can be calculated as follows

= Cash receipts from farm + marketing receipts of government + payment from other income from farm sources-production expenses

= $500,000 + $100,000 + $50,000 - $300,000

= $650,000-$300,000

= $350,000

(B) The equity from this operation can be calculated as follows

= value of real estate assets + value of non real estate assets + financial assets assets- liabilities

= $10,000,000 + $5,000,000 + $1,000,000 - $8,000,000

= $16,000,000-$8,000,000

= $8,000,000

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.