Peter's farm
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On the first of January Peter starts a beef farm. He has savings of $ 50.000 which he puts on the farm bank account and he can get a loan from his aunt in Marocco of $ 100.000 at 5% interest and pay off in 10 years. He uses this money, together with his bank account to make his investments.
Land | $ 50.000 |
Buildings (estimated life span 10 years) | $ 30.000 |
Farm equipment (estimated life span 5 years) | $ 30.000 |
TOTAL | $ 110.000 |
In March he sows maize.
At the end of the year (31 of December) Peter looks back and makes up the balances and evaluates the year. Interest and payment of the loan of his aunt are not done yet. This will be done in June coming year. Peter's costs of living were $ 5.000 and were withdrawn from the farm bank account.
Maize seed | $ 300 |
Expenses for crop protection | $ 600 |
Other costs (maintenance etc.) | $ 1.000 |
TOTAL | $ 1.900 |
After harvest Peter sells 50% of his harvest. The remaining part he keeps in stock.
For the maize sold he receives $ 10.000.
After harvest Peter sells 50% of his harvest. The remaining part he keeps in stock.
For the maize sold he receives $ 10.000.
Quiz
What is the total of the revenues in Peter's first year? (write only the total and not « $ »).
Quiz
What is the total of the variable costs in Peter's first year? (write only the total and not « $ »).
Quiz
What is the total of the fixed costs in Peter's first year? (write only the total and not « $ »).
Quiz
What is the balance of Peter's bank account at the end of the year? (write only the total and not « $ »).
