Know Your Numbers, Know Your Options Class 2

 VIDEO The Balance Sheet Part 1 (12 minutes)

 VIDEO The Balance Sheet Part 2 (10 minutes)

Activity 2.1: Choose the correct class for each account. 

Link: https://go.unl.edu/know2-1

Activity 2.2: Select the best answer for each of the following questions

Link: https://go.unl.edu/know2-2

Activity 2.3:Jon & Joan Case use a periodic inventory system. Below are the purchases and beginning inventory made by the farm. Compute inventory on June 30, 20XX and the cost of the units under each of the following methods. The farm used 1,900 units during the month of June. Complete each table by entering the number of units that were used at each price point.

Link: https://go.unl.edu/know2-3

June 1: Beginning Inventory: 1,000 units @ $3.20

June 12: Inventory Purchased, 800 units @$3.14

June 23: Inventory Purchased, 600 units @ $3.32

June 29: Inventory Purchased, 700 units @ $3.26

 VIDEO Benchmarking Ratios (12 minutes)

Activity 2.4: Jon & Joan Case are curious how their farm stacks up to others. Using the following information from their 2019 Balance Sheet, calculate their Net Worth, Working Capital, Current Ratio and Debt to Asset Ratio. 

Link https://go.unl.edu/know2-4

  • Current Farm Assets $220,237
  • Current Farm Liabilities $185,673
  • Total Farm Assets
    • Cost $1,126,043
    • Market $2,012,637
  • Total Farm Liabilities $576,466

Activity 5: Answer the following questions, be prepared to share your response during our class discussion. 

  1. Based on what you know about the Case Family, how can they improve their current ratio?
  2. Based on what you know about the Case Family, how can they improve their Debt to Asset ratio?