Make use of the following information extracted from financials of Mr. B’s farm to answer the following questions. Basic Information: Mr. B has a farm of 2200ha. He Plants 1750ha maize and uses 450ha as veld for his livestock. The buildings and fixed improvements are located on the remainder of the farm. He also rents a 3 ha of land in Botlokwa, where he produces macademia nuts. Mr. B provides the following Financial information for his farm business for the period 1 April 2020 to 30 April 2020. Description of transaction Amount / Value Cash sales of maize R 1 850 000. Credit sales of livestock to local butcher R 32 000. Cash sales of livestock R 1 500 900. Cash payment: Instalment on long-term loan at Land Bank (interest) R 254 400. Receive cash from neighbour for fields ploughed on contract R 49 000. Cash sale from old tractor R 189 000. Slaughter heifer for household consumption R 18 300. Purchased crop chemicals on credit from a co-operative R 200 500. Wages paid R 88 400. Receive cash from insurance for a bull struck by lightning R 50 000. Cash payment: Income tax R 97 200. Credit sales of macademia nuts R 480 000. Pay livestock marketing costs R 978 000. a) Calculate the total cash inflow for the month of April. b) Calculate the total cash outflow for the month of April. c) Calculate and interpret the cash surplus or shortfall.
Make use of the following information extracted from financials of Mr. B’s farm to answer the following questions. Basic Information: Mr. B has a farm of 2200ha. He Plants 1750ha maize and uses 450ha as veld for his livestock. The buildings and fixed improvements are located on the remainder of the farm. He also rents a 3 ha of land in Botlokwa, where he produces macademia nuts. Mr. B provides the following Financial information for his farm business for the period 1 April 2020 to 30 April 2020. Description of transaction Amount / Value Cash sales of maize R 1 850 000. Credit sales of livestock to local butcher R 32 000. Cash sales of livestock R 1 500 900. Cash payment: Instalment on long-term loan at Land Bank (interest) R 254 400. Receive cash from neighbour for fields ploughed on contract R 49 000. Cash sale from old tractor R 189 000. Slaughter heifer for household consumption R 18 300. Purchased crop chemicals on credit from a co-operative R 200 500. Wages paid R 88 400. Receive cash from insurance for a bull struck by lightning R 50 000. Cash payment: Income tax R 97 200. Credit sales of macademia nuts R 480 000. Pay livestock marketing costs R 978 000. a) Calculate the total cash inflow for the month of April. b) Calculate the total cash outflow for the month of April. c) Calculate and interpret the cash surplus or shortfall.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Make use of the following information extracted from financials of Mr. B’s farm to answer the
following questions.
Basic Information: Mr. B has a farm of 2200ha. He Plants 1750ha maize and uses 450ha as veld for
his livestock. The buildings and fixed improvements are located on the remainder of the farm. He
also rents a 3 ha of land in Botlokwa, where he produces macademia nuts. Mr. B provides the
following Financial information for his farm business for the period 1 April 2020 to 30 April 2020.
Description of transaction Amount / Value
Cash sales of maize R 1 850 000.
Credit sales of livestock to local butcher R 32 000.
Cash sales of livestock R 1 500 900.
Cash payment: Instalment on long-term loan at Land Bank (interest) R 254 400.
Receive cash from neighbour for fields ploughed on contract R 49 000.
Cash sale from old tractor R 189 000.
Slaughter heifer for household consumption R 18 300.
Purchased crop chemicals on credit from a co-operative R 200 500.
Wages paid R 88 400.
Receive cash from insurance for a bull struck by lightning R 50 000.
Cash payment: Income tax R 97 200.
Credit sales of macademia nuts R 480 000.
Pay livestock marketing costs R 978 000.
a) Calculate the total cash inflow for the month of April.
b) Calculate the total cash outflow for the month of April.
c) Calculate and interpret the cash surplus or shortfall.
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