Dean Farmer recently won the lottery, and used his winnings to purchase a farm in 2018....

	For Dean
	Cost Basis Balance Sheet as at 1-1-2019
A	Equity and Liabilities	Amount ($)
1	Share capital (Balancing figure in Balance sheet)	617750
2	Non Current Liabilities
(i)	Long Term Borrowings (given)	75000
3	Current Liabilities
(i)	Accounts Payable	17000
(ii)	Other Accrued Expenses (Note 2)	53500
	Total	763250
B	Assets
1	Non Current Assets
2	Current Assets
(i)	Inventory (Note 3)	520750
(ii)	Livestock (Note 4)	33500
(iii)	Feed (Note 5)	55000
(iv)	Supplies on hand	18000
(v)	Accounts Receivable	32000
(vi)	Cash (Note 1)	104000
	Total	763250
	Note 1: Cash workings
	Closing balance of Cash (31-12-2019)	24000
	Add Back: Expenses paid during the year
	Fuel and oil expense	37000
	Labor expense	18000
	Property taxes paid	15000
	Feed purchases	15000
	Prepaid expenses	20000
	Crop expenses	220000
	Interest paid	11850
	Repair expense	36900
	Insurance expense	10500
	Feeder livestock purchases	20000
	Principal paid-Beef Loan	10000
	Principal paid-Farm Mortgage	20000
	Government program payments	2000
	Other livestock expenses	12000
	Less: Cash realised during the year
	Livestock sales	17500
	Crop sales (corn and wheat)	350750
	Net Opening Cash Balance	104000
	Note 2: Other Accrued Expenses
	Particulars	Closing Payable	Paid	Opening Payable
	Property Tax	16000	15000	31000
	Interest	10650	11850	22500
	Total			53500
	Note 3: Inventory
	Closing Inventory:
	Corn	120000
	Wheat	50000
	Total Closing Inventory	170000
	Total Sales (Corn and Wheat)	350750
	Therefore, Total Opening Inventory	520750
	Note 4: Livestock
	Total Closing Livestock Inventory	36000
	Livestock Sales	17500
	Feeder livestock purchases	20000
	Therefore, Total Opening Livestock	33500
	Note 5: Feed
	Total Closing Feed on Hand	70000
	Feed purchases	15000
	Therefore, Total Opening Feed	55000