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You have calculated Net Farm Income (NFI) on a cash basis to be $90,000. Based on...

You have calculated Net Farm Income (NFI) on a cash basis to be $90,000. Based on the additional information provided answer questions a. and b.

  • Sale of used combine (capital asset sale): $20,000
  • Grain inventories (revenue item)
    • Beginning: $9,000
    • Ending: $4,000
  • Accounts payable (expense item)
    • Beginning: $2,000
    • Ending: $7,000
  1. Calculate Net Farm Income from Operations (NFIO) on a cash basis
  1. Calculate Net Farm Income (NFI) on an accrual basis
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