Question
Calculate the potential annual gross income and profit/loss for Mr Khoza based on the available information in the case study. Indicate if the business is
Calculate the potential annual gross income and profit/loss for Mr Khoza based on the available information in the case study. Indicate if the business is a feasible proposition based on all the information provided. Please show all calculations of income and expenses Table 1: Monthly expenses # Expenditure Value 1 Average electricity bill R120 000 2 Rent R30 000 Calculate the potential annual gross income and profit/loss for Mr Khoza based on the available information in the case study. Indicate if the business is a feasible proposition based on all the information provided. 3 Salaries: Office administrators R40 000 4 Salaries: Cleaning staff R21 000 5 Salaries: Groundskeepers R14 000 6 General maintenance of equipment and vehicles R80 000 7 Bank loan instalment R80 000 8 General expenses R10 000 9 Purchasing of firewood (100 bundles @ R20) R2 000 10 Insurance premiums against loss of business, fire and theft R20 000 Total per month R417 000 CONFIDENTIAL Page 6 of 24 RSK4801 January 2023 [TURN OVER] Table 2: Value of assets # Asset Value 1 Washing machines R80 000 2 1 small vehicle R120 000 3 Lawnmowers and gardening equipment R150 000 4 1 delivery vehicle R190 000 5 Furniture R80 000 6 Computer equipment R110 000 7 Cleaning equipment R30 000 Total R 760 000
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