Ms Fiona is buying feed for her animals from a supplier. The supplier is normally granting credit for 90 days. He is now prepared to give a 1,5% discount if the account is settled within seven days. Ms Fiona is paying interest on her overdraft of 12% per annum. Advise Ms Fiona as to whether she should make use of the offer. (10) TASK 2 Use the following information and calculate the amount of money available for this farmer to repay debt with. Gross production value R890 000, Existing debt repayment R65 000, Non-farm income R 560000 , Interest an bank overdraft R63 000, Living expenses R186 000, Interest and capital redemption on farm R52 000, Income tax R29 000, Production marketing and administrative costs R96 000, Interest and capital redemption on bakkie and tractor R88 000. (10) Determine what the minimum production area must be to justify the purchase of a mechanical grape picker. (15) TASK 2 Explain the way in which Value Added Tax is calculated in detail and supply an example of such a calculation for a farmer. TASK 3 Calculate the tax saving from an instalment sale agreement as applicable for a farming concern. Calculate (a) to (k). Calculate the present value of the net capital outflow in the second table. Calculate (i) to (z). Please draw a table when answering, not only the letters. (25) TAX TABLE PS. ALL ASSIGNMENTS NEED TO BE TYPED IN ORDER TO BE MARKED! Ms Fiona is buying feed for her animals from a supplier. The supplier is normally granting credit for 90 days. He is now prepared to give a 1,5% discount if the account is settled within seven days. Ms Fiona is paying interest on her overdraft of 12% per annum. Advise Ms Fiona as to whether she should make use of the offer. (10) TASK 2 Use the following information and calculate the amount of money available for this farmer to repay debt with. Gross production value R890 000, Existing debt repayment R65 000, Non-farm income R 560000 , Interest an bank overdraft R63 000, Living expenses R186 000, Interest and capital redemption on farm R52 000, Income tax R29 000, Production marketing and administrative costs R96 000, Interest and capital redemption on bakkie and tractor R88 000. (10) Determine what the minimum production area must be to justify the purchase of a mechanical grape picker. (15) TASK 2 Explain the way in which Value Added Tax is calculated in detail and supply an example of such a calculation for a farmer. TASK 3 Calculate the tax saving from an instalment sale agreement as applicable for a farming concern. Calculate (a) to (k). Calculate the present value of the net capital outflow in the second table. Calculate (i) to (z). Please draw a table when answering, not only the letters. (25) TAX TABLE PS. ALL ASSIGNMENTS NEED TO BE TYPED IN ORDER TO BE MARKED
