Guy is 111K/year net operating loss less 106K debt service so 217K/yr loss over 5 years loses $1.1M and working capital goes from 600K to -600K (rounding).

Without farm purchase guy still has 111K net operating loss (maybe less if purchased field also losing money) and 2K/yr debt service above repayment capacity so 113K/yr loss for 5 years is 600K (rounding), guy would still have 500K working capital and on a $2M operating expense (slight decline due to post-boom cycle inputs) has 25% WC to op expense; hey, the ship took on water but we are still sailing.