Peep Stores and all its suppliers are registered VAT vendors, and VAT is calculated at 14% (where applicable). The following information was extracted from the ledger of Peep Stores for the reporting period ended 28 February 2018: R Trade inventories (1 March 2017) 277 500 Purchases 820 000 Freight (in) 80 000 Freight (out) 120 000 Total sales 1. 1 252 500 Additional information: 1. During June 2017 goods were sold on a sale at a discount of 20% on selling price. The total sales figure provided above includes sales of R140 000 (excluding VAT) in respect of goods sold during the June sale. 2. Peep Stores maintains a consistent mark-up (except for the June sale). 3. On 12 March 2018 a fire erupted while the shop was closed for the lunch hour and almost all the inventories were destroyed. 4. Peep Stores is insured for R136 800 (including VAT) for loss of inventories in terms of a policy which contains an average clause. 5. The following information is available for March 2018: R Trade inventories March 01 147 500 Purchases (VAT included) 02 79 800 17 153 900 20 228 000 Sales (VAT included) 05 125 400 23 182 400 6. The value of trade inventories was determined by a physical count on 31 March 2018 and amounted to R258 800. The insurance company paid the claim on 31 March 2018. REQUIRED: a) Calculate the gross profit percentage on sales for the year ended 28 February 2018. (10) b) Calculate the cost of trade inventories destroyed by the fire on 12 March 2018 assuming a gross profit margin of 20% on sales. (Hint: Calculate trade inventories salvaged.) (12) c) Calculate the amount which can be claimed from the insurance company in respect of the cost of trade inventories destroyed by the fire. (Round off to the nearest Rand.)