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    Depreciation Q 4.6

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    Bhavesh Motwani
    The document contains three examples of calculating cash flow using different depreciation methods: straight line method, written down value method, and sum of the years digits method. It includes the calculations for earnings before interest and taxes, depreciation expense, earnings before taxes, taxes, net income, and cash flow for three years under each method.

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    Depreciation Q 4.6

    Uploaded by

    Bhavesh Motwani
    16 views2 pages
    The document contains three examples of calculating cash flow using different depreciation methods: straight line method, written down value method, and sum of the years digits method. It includes the calculations for earnings before interest and taxes, depreciation expense, earnings before taxes, taxes, net income, and cash flow for three years under each method.

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    depreciation Q 4.6

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    The document contains three examples of calculating cash flow using different depreciation methods: straight line method, written down value method, and sum of the years digits method. It includes the calculations for earnings before interest and taxes, depreciation expense, earnings before taxes, taxes, net income, and cash flow for three years under each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    16 views2 pages

    Depreciation Q 4.6

    Uploaded by

    Bhavesh Motwani
    The document contains three examples of calculating cash flow using different depreciation methods: straight line method, written down value method, and sum of the years digits method. It includes the calculations for earnings before interest and taxes, depreciation expense, earnings before taxes, taxes, net income, and cash flow for three years under each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    4.

    1) SLM
    Particulars 1 2 3
    EBIT 1500000 2000000 2500000
    Less: Dep. 200000 200000 200000
    EBT 1300000 1800000 2300000
    Less:tax 650000 900000 1150000
    Net Income 650000 900000 1150000
    Add: Dep. 200000 200000 200000
    Cash flow 850000 1100000 1350000

    2) WDV
    Particulars 1 2 3
    EBIT 1500000 2000000 2500000
    Less: Dep. ₹ 400,000.00 ₹ 320,000.00 ₹ 256,000.00
    EBT ₹ 1,100,000.00 ₹ 1,680,000.00 ₹ 2,244,000.00
    Less:tax ₹ 550,000.00 ₹ 840,000.00 ₹ 1,122,000.00
    Net Income ₹ 550,000.00 ₹ 840,000.00 ₹ 1,122,000.00
    Add: Dep. ₹ 400,000.00 ₹ 320,000.00 ₹ 256,000.00
    Cash flow ₹ 950,000.00 ₹ 1,160,000.00 ₹ 1,378,000.00

    3) Sum of the year method


    Particulars 1 2 3
    EBIT 1500000 2000000 2500000
    Less: Dep. 363636.36 327272.73 29090.91
    EBT 1136363.64 1672727.27 2470909.09
    Less:tax 568181.82 836363.64 1235454.55
    Net Income 568181.82 836363.64 1235454.55
    Add: Dep. 363636.36 327272.73 29090.91
    Cash flow 931818.18 1163636.36 1264545.45
    4 5 SLM 2000000-0/10 200000
    3000000 3500000
    200000 200000
    2800000 3300000
    1400000 1650000
    1400000 1650000
    200000 200000
    1600000 1850000

    4 5
    3000000 3500000
    ₹ 204,800.00 ₹ 163,840.00
    ₹ 2,795,200.00 ₹ 3,336,160.00
    ₹ 1,397,600.00 ₹ 1,668,080.00
    ₹ 1,397,600.00 ₹ 1,668,080.00
    ₹ 204,800.00 ₹ 163,840.00
    ₹ 1,602,400.00 ₹ 1,831,920.00

    4 5 year % of depreciation
    3000000 3500000 1 18%
    254545.45 218181.82 2 16%
    2745454.55 3281818.18 3 15%
    1372727.27 1640909.09 4 13%
    1372727.27 1640909.09 5 11%
    254545.45 218181.82 6 9%
    1627272.73 1859090.91 7 7%
    8 5%
    9 4%
    10 2%
    55

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