Question 1 New toys Ltd carries on business as a manufacturer of toys from its main branch in the Republic. The company also operates a depot in Botswana, where sales are made to customers living in Botswana. The Botswanan depot does not operate as an independent branch. New toys Ltd has been registered as a Category 'A' vendor. All amounts include VAT where appropriate. The following information is provided: Receipts: February March R R 1. Cash sales made by the Republic branch to South African 199 300 customers 182 200 Cash sales made by the Botswanan depot to Botswanan 45 400 customers (these goods were forwarded to the depot on 10 January and were all sold by the end of March) 56 800 2. Insurance payment received on an insurance claim for trading 176 500 stock stolen in the Republic 3. Interest received on a loan to a subsidiary company in the 19 180 Republic 4. Cash received for the sale of an old machine to Mr Bell, the 16 900 majority shareholder. Mr Bell is not a registered vendor. The machine originally cost R20 000 and had a book value of R5 000 on the date of sale. The open market value on the date of sale was R17 980. Expenses: February March R R 1. Wages and salaries 69 340 62 500 2. Property rates on the business property 7 210 7 210 3. Electricity and water 6 583 6 355 4. Telephone 6412 6070 5. Raw materials purchased from other vendors 142 300 96 700 6. Cost of entertaining important customers at various restaurants 6 868 in Durban 6412 7. Purchase of a new single-cab bakkie for use as a delivery vehicle Cost 176 500 14 050 Finance charges paid 8. Cash cost of a new motor car purchased for general use within 96 700 the business 9. Petrol for delivery vehicles and the new motor car 10. Maintenance of delivery vehicle and the new motor car 6412 6526 6 298 6412 11. New toys purchased three water bottles for the cold water- 11 500 dispensing machine in the staff canteen. These bottles cost R2 000 each and were paid for in March. Required: Calculate the VAT payable by or refundable to New Toys Ltd in respect of its two-month tax period ended 31 March 2020. (Show detailed workings of how you would deal with each item.) NB: round off your calculations to the nearest Rand.