From the information above, calculate the profit or loss on the farm. (b) State one importance of farm record.

$$\text{Sales of oil palm seedlings} = \text{Le } 1,100.00$$ $$\text{Sales of yam products} = \text{Le } 2,500.00$$ $$\text{Total Income} = \text{Le } 1,100.00 + \text{Le } 2,500.00 = \text{Le } 3,600.00$$

$$\text{Establishment of oil palm nursery} = \text{Le } 1,000.00$$ $$\text{Payment of hired labour} = \text{Le } 800.00$$ $$\text{Purchase of yam planting materials} = \text{Le } 600.00$$ $$\text{Total Expenses} = \text{Le } 1,000.00 + \text{Le } 800.00 + \text{Le } 600.00 = \text{Le } 2,400.00$$

$$\text{Profit/Loss} = \text{Total Income} - \text{Total Expenses}$$ $$\text{Profit/Loss} = \text{Le } 3,600.00 - \text{Le } 2,400.00 = \text{Le } 1,200.00$$

Since the total income is greater than the total expenses, the farm made a profit.
Profit: Le 1,200.00

11. (b) State one importance of farm record.
Farm records help in making informed management decisions for future operations, such as planning planting schedules, budgeting, and evaluating the profitability of different crops.
Helps in making informed management decisions for future operations.