Web Analytics

Snap Your Questions, Uncover the Solutions

contact us

Contact Info

Questions › Math

Math Asked by a SnapAndSolve user · about 2 hours ago

A small dairy farm wants to improve financial control. During one month, the farm records milk sales of Rs....

04. A small dairy farm wants to improve financial control. During one month, the farm records milk sales of Rs. 450,000, feed cost of Rs. 180,000, labour cost of Rs. 75,000, veterinary cost of Rs. 25,000, electricity and water cost of Rs. 18,000, and transport cost of Rs. 22,000.
(a) State the purpose of preparing an income statement, balance sheet, and cash flow statement in an agribusiness. (03 Marks)
(b) Calculate the total monthly expenses of the dairy farm using the above information. (03 Marks)
(c) Calculate the monthly profit or loss of the dairy farm. (04 Marks)
(d) Explain two (02) basic banking services that can support agribusiness activities. (05 Marks)
(e) Analyze how financial planning helps to maintain a sustainable farm enterprise. (05 Marks)

Answer

  1. Income Statement: Provides a summary of revenues and expenses over a period, showing the profit or loss. Balance Sheet: Shows the financial position at a specific point in time, detailing assets, liabilities, and equity. Cash Flow Statement: Tracks the flow of cash in and out, highlighting liquidity and financial flexibility.

  2. Total monthly expenses = Feed cost + Labour cost + Veterinary cost + Electricity and water cost + Transport cost = Rs. 180,000 + Rs. 75,000 + Rs. 25,000 + Rs. 18,000 + Rs. 22,000 = Rs. 320,000.

  3. Monthly profit or loss = Milk sales - Total expenses = Rs. 450,000 - Rs. 320,000 = Rs. 130,000 (Profit).

  4. Loan Services: Provide funds for expansion, equipment purchase, or operational costs. Deposit Accounts: Safe place to store funds, earn interest, and manage cash flow.

  5. Financial planning ensures efficient resource allocation, risk management, and long-term sustainability. It helps in budgeting, forecasting, and setting financial goals, ensuring the farm remains profitable and resilient to market changes.

Have a similar question?

Snap a photo of your homework and get a step-by-step answer in seconds. You can ask follow-up questions until it makes sense.

Solve my question free Math help Find a math tutor

More math questions

© 2026 SnapAndSolve

Math solver Physics solver Chemistry solver Homework helper