Project information

Project 1

Ethiopian revenue austerity assigns tax, to audit BGL Brewery Company Addis Ababa branch. The
companies’ document shows data for the year 2018 budget year.

Type of tax Amount

1 Tax on income from employment 7,500.00

2 Business profit tax 32,250.00

3 Liability 21,150.00

4 Tax on income from rental of building s 81,250.00

5 Tax on interest income on deposits 5,350.00

6 Turnover tax 14,280.00

7 Cash 32,000.00

8 Dividend income tax 13,000.

9 Tax on income from royalties 21,000.00

10 Capital 90,000.00

11 Tax on gain of transfer of certain investment property 5,150.00

12 Excise tax 36,280.00

13 Fax on income from rental of property 11,260.00

14 Value added tax 73,350.00

15 Rendering of technical service outside Ethiopia 10,000.00

16 Land use tax 9800

17 Customer duty 42,000.00

Based on above information perform the following tasks

Task: 1.1 calculate total direct taxes

Task: 1.2 calculate total indirect taxes

Task: 1.3 demonstrate the role of tax in Ethiopian economy

Project 2:

Addis Ababa city inaugurate to create job opportunities for unemployment youth to discuss how to
organize and manage medium business enterprise to textile and agro processing industry’s to effectively
and efficiency achieve the goal of enterprise productivity and how to solve the enterprise problems and
conflict of interest. Based on the given information perform the following tasks.

Task2.1: demonstrate the challenge in the work others.

Task 2.2: demonstrate how to solve problems and conflict with others

Task 2.3: demonstrate strategies OR opportunities to improve the enterprise goal?

Project 3:

WALYA boutique shop are manufacturing business his plan is to sales 60 quantity of cloth, 90 quantity of
shoes with birr 500 and birr 600 per unit respectively for the month of Meskerem 2018 and the shop
incur the following expenses for the month of Meskerem 2018 salary expense br 20000, advertising
expense birr 12000, utilities expense birr 4000, debt payment birr 2650, commission expense birr 9500.
Additionally the shop earn revenue 15000 by renting his building. However because of poor
management the shoes actual sales only 75% of the quantity of cloth with and 80 % of quantity of shoes.

Task 3.1 prepare budget for the month of Meskerem 2018.

Task 3.2 prepares the budget performance report for the month of Meskerem 2018.

Task 3.3 demonstrate obstacle of your budget.

Project 4:

GEBRU BORROWED MONY FOR EXPANISION OF THIS HIS BUSINESS FROM DIFFERENT BANK

- From awash bank borrowed 180,000 birr at interest rate of 12% for 3 years paid
semiannually at equal installment. based on the above information perform the following
tasks
- From Dashin bank borrowed 240,000 birr at interest rate of 12% for 2 years paid quarterly at
equal installment.
- From credit and saving association borrowed 100,000 birr at interest rate of 14% for 4 years
paid annually at equal installment.

Service charge per year for awash bank birr 1,000 for dashin bank birr 1,200 for credit saving association
birr 1,400. (Use simple interest rate) based on the above information perform the following tasks.

Task 4.1 calculates the total interest expense and service charge at the end of the first year for the three
loans. (AWASH, Dashin and credit association)
Task 4.2 calculates the total interest expense and service charge at the end of the second year for the
loan Awash, and credit association.

Task 4.3 demonstrates advantage of investment.

POSSIBLE SOLUTION

PROJECT 1

Task 1.1: Total direct tax

1 Tax income tax from employment 7,500.00

2 Business profit tax 32,250.00

3 Tax on income from rental of buildings 81,250.00

4 Tax on interest income on deposits 5,350.00

5 Dividend income tax 13,000.00

6 Tax on income from royalties’ 21,000.00

7 Tax on gain of transfer of certain investment 5,150.00

property

8 Tax on income from rental of property 11,150.00

9 Rendering of technical services outside Ethiopia 10,000.00

10 Land use tax 9,800.00

TOATAL 196,560.00

Task 1.2 total indirect tax

1 Turn over tax 14,250.00

2 Excise tax 36,250.00

3 Added tax 73,350.00

4 Custom duty 42,000.00

TOTAL 165910
TASK 1.3: Demonstrate the role of tax Ethiopian economy

 Environmental protection
 Essential in structure such as:
 Roads
 Transport system
 Public building
 Sport and recreation amenities
 Public housing
 Foreign representation and trade promotion for Ethiopia
 Health care
 Justice systems
 Public safety
 Since and other community support systems

PROJECT 2

Task 2.1 demonstrate challenge work with others

 Conflict of interest
 Ignore own responsibilities and duties
 Lack of respect group members
 Lack of cooperation and good relationship
 Discourage work requirements of self and others
 Disagree constructive feedback provided by others in the workgroup
 Lack of team behavior
 Lack of skilled member

Task 2.2 demonstrate how solve problems and conflict work with others

 Respect differences in personal values and beliefs

 Accept importance good relationship
 Identify any linguistic and cultural differences appropriately
 Identify issues, problems and conflict encountered in the workplace
 Seek assistance from workgroup members
 Suggest possible ways of dealing with them as appropriate or refer them to the appropriate
person.

Task 2.3 demonstrates strategies or opportunities to improve the enterprise goal?

 Career planning/development
 Coaching, monitoring and /or supervision
 Formal/informal learning programs
 Internal/external training provision
 Performance appraisals
 PROJECT 3:

Task 3.1: Budget for the month of Meskerem

Items Quantity Unit price Total

Cash 60 500 30,000.00

Shop 90 600 54,000.00

Other income 15,000.00

Total income 99,000.00

Salary expense 20,000.00

Advertize expense 12,000.00

Utility expense 4,000.00

Dept payment 2,650.00

Commission 5,500.00
expense

Total expense 48,150.00

Total saving 50,850.00

Task 3.2: Budgeting performance report for the month of Meskerem

Items Budgeted Actual Unit price Budget Actual Variance

quantity quantity Meskerem Meskerem

Cloth 60 45 500 30,000.00 22,500.00 7,500.00

Shoe 90 72 600 54,000.00 43,200.00 10,800.00

There income 15,000.00 15,000.00

Total income 99,000.00 80,700.00 18,300.00

expense 20,000.00 20,000.00 -

Advertise 32,000.00 12,000.00

expense

Utilities expense 4,000.00 4,000.00

Dept payment 2,650.00 2,650.00

Commission 9,500.00 9,500.00

expense

Total expense 48,150.00 48,150.00

Total saving 50,850.00 32,550.00 18,300.00

Task 3.4: Possible solution answer

 Being unemployment particularly long term unemployed

 Insufficient income to afford items that are beyond the individual’s means
 Unexpected circumstances such as:
 Losing a job
 Falling ill not being able to work.

PROJECT 4

TASK 4.1

AWASH ABNK

Loan 180,000.00

Installment 1800, 00/6 = 30,000.00

1st 180,000.00 0.12 10,800.00

2nd 150,000.00 0.12 9,800.00

= 19800

Service Charge = 1000

= 20800

DASHN BANK

Loan 240,000.00

Installment 240,000/8 = 40,000.00

1 quarter 240,000.00 0.12 7,200.00

2 quarter 200,000.00 0.12 6,000.00

3 quarter 160000 0.12 4800

4 quarter 120000 0.12 3600

= 21600

Service charge 1200

= 22800

CREDIT ASSOCIATION

Loan 100,000.00

Installment 100,000/4 25,000.00

1 year 100,000.00 0.14 14,000.00

Service charge = 1400

= 15400

TOATAL INTERSET EXPENSE AND SERVICE CHARGE FOR THREE LOAN = 59000

TASK 4.2

AWASH BANK

Loan 180000

Installment 180000/6 = 30,000 .00

1st 180,000.00 0.12 10,800.00

2nd 150,000.00 0.12 9,000.00

1st 120,000.00 0.12 7,200.00

2nd 90,000.00 0.12 5,400.00

= 32400

Service charge = 2,000.00

= 34,400.00

CREDIT ASSOCIATION

Loan 100,000.00

Installment 100,000.00/4 = 25,000.00

1year 100,000.00 0.14 14,000.00

2year 75,000.000 0.14 10,500.00

= 24500

Service charge = 2,800.00

= 27,300.00

Total interest expense and service charge for awash and credit association= 61,700.00

Task 4.3

 To create job opportunities

 To decrease unemployment
 Reduction of poverty
 To increase economy
 Increase export
 To generate hard currency