Belayah motors PLC is engaged in assembly of commercial vehicles import and distribution of various types of motors vehicle, heavy truck and machinenes with after sales service on march 1 2015 the company cash balance indicated in bank account was br 15,250,000.00 during march the company imported 20 Desile motor with cylinder capacity 1300 CC from Germany costing FOB EURO 50,000 and birr 53,800 for insurance and 98,200 was paid for freight to the imported goods Additional information Duty and tax applicable on imported diesel vehicle in Ethiopia Duty rate 35% Excise Tex30% VAT 15% Sur tax 10% Withholding tại 3% EXCHANGE RATE DURING THE MONTH (CONSTANT) EURO SELLING BUYING 27.00 26.57 Task 4.1: determine the cost of the imported diesel vehicle motor before duty and tax payable assume that there is 1.5% of bank senior charge on FOB Value Task 4.2: calculate total duty, excise, VAT, Sur tax and withholding tax payable at the time of import Task 4.3: based on the data given above determine cash in the bank at the end of the month Task 4.4: determine the total cost of each imported diesel vehicle motor with cylinder capacity 1300 cc

Task 4.1:
Cost of imported diesel vehicle motor before duty and tax payable:
FOB Value = EURO 50,000
Insurance = EURO 53,800
Freight = EURO 98,200
Bank service charge = 1.5% of FOB Value = 0.015 x 50,000 = EURO 750
Total cost before duty and tax = 50,000 + 53,800 + 98,200 + 750 = EURO 202,750

Exchange rate:
Buying rate = 26.57

Total cost before duty and tax in BIRR:
202,750 x 26.57 = BIRR 5,385,917.50

Task 4.2:
Total duty, excise, VAT, Sur tax, and withholding tax payable:
Duty = 35% of total cost before duty and tax = 0.35 x 5,385,917.50 = BIRR 1,885,071.13
Excise Tax = 30% of total cost before duty and tax = 0.30 x 5,385,917.50 = BIRR 1,615,775.25
VAT = 15% of total cost before duty and tax = 0.15 x 5,385,917.50 = BIRR 807,887.63
Sur tax = 10% of total cost before duty and tax = 0.10 x 5,385,917.50 = BIRR 538,591.75
Withholding tax = 3% of total cost before duty and tax = 0.03 x 5,385,917.50 = BIRR 161,577.25

Total duty, excise, VAT, Sur tax, and withholding tax payable = 1,885,071.13 + 1,615,775.25 + 807,887.63 + 538,591.75 + 161,577.25 = BIRR 5,008,903.01

Task 4.3:
Cash in the bank at the end of the month:
Cash balance at the beginning of the month = BIRR 15,250,000.00
Cash inflow from importing diesel vehicles = BIRR 5,385,917.50
Cash outflow for duty, excise, VAT, Sur tax, and withholding tax = BIRR 5,008,903.01
Net cash inflow = 5,385,917.50 - 5,008,903.01 = BIRR 377,014.49

Cash in the bank at the end of the month = 15,250,000.00 + 377,014.49 = BIRR 15,627,014.49

Task 4.4:
Total cost of each imported diesel vehicle motor with cylinder capacity 1300 cc:
Total cost of one imported diesel vehicle motor = total cost before duty and tax + total duty, excise, VAT, Sur tax, and withholding tax payable
Total cost of one imported diesel vehicle motor = 5,385,917.50 + 5,008,903.01 = BIRR 10,394,820.51