Ivan’s Balance Sheets As of the beginning
Assets:
Bushels of wheat 0 Seed (Wheat) 20 Fertilizer 2 Ox 40 Land (20 acres) 100 Plow 3

Total Assets 165

Liabilities: Accounts payable 3

Total Liabilities 3

Net Assets: 162

Total Equity: 162
End of the growing season
Assets:
Bushels of wheat 243 Seed (Wheat) 0 Fertilizer 0 Ox 36 Land (20 acres) 100 Plow 0

Total Assets 379

Liabilities:

Accounts payable 3

Total Liabilities 3

Net Assets: 376

Total Equity: 376

Frederick’s Balance Sheets As of the beginning
Assets:
Bushels of wheat 0 Seed (Wheat) 10 Fertilizer 1 Ox 40 Land (10 acres) 50 Plow 3

Total Assets 104

Liabilities: Accounts payable 0

Total Liabilities 0

Net Assets: 104

Total Equity: 104
End of the growing season
Assets:
Bushels of wheat 135 Seed (Wheat) 0 Fertilizer 0 Ox 36 Land (10 acres) 50 Plow 2

Total Assets 223

Liabilities:

Accounts payable 0

Total Liabilities 0

Net Assets: 223

Total Equity: 223

Ivan’s Income Statement
Revenues:
Bushels of wheat 243 Total Revenues 243
Expenses:
Seeds expense 20 Fertilizer 2 Depreciation expense (Ox and plow) 7 Total Expenses 29
Net Income: 214
Fredericks’s Income Statement
Revenues:
Bushels of wheat 138 Total Revenues 138
Expenses:
Seeds expense 10 Fertilizer 1 Plow expense 3 Depreciation expense (Ox and plow) 5 Total Expenses 19
Net Income: 119

2. Which peasant was the better farmer?
Frederick has the better output, producing a ratio of 11.9 bushels of