logo

Accounting and Finance Assignment Ratio Analysis

   

Added on  2020-04-07

15 Pages2336 Words31 Views

1By student name ProfessorUniversityDate: 16 September 2017.1 | P a g e

2ContentsQuestion No.1..............................................................................................................3Question No.2..............................................................................................................7Introduction and Executive Summary.........................................................7Report and other analysis.............................................................................7Conclusion.....................................................................................................13Refrences..................................................................................................................142 | P a g e

3Question No.1Based on the inputs given in the question, following is the calculation of the depreciation and the cashflows for all the 3 cases namely best case, worst case and base case. Amount to be capitalised for LabAmt (in $)Capital cost incurred1,650,000Less: Salvage value of the Lab(100,000)Cost to be depreciated1,550,000Life in no. of years8Depreciation cost each year193,75012345678Revenues (A)1,445,0001,589,5001,748,4501,923,2952,115,6252,327,1872,559,9062,815,896Less: CostsDepreciation193,750193,750193,750193,750193,750193,750193,750193,750Staff cost900,000954,0001,011,2401,071,9141,136,2291,204,4031,276,6671,353,267Material cost210,000222,600235,956250,113265,120281,027297,889315,762Marketing cost46,00048,76051,68654,78758,07461,55865,25269,167Other cost25,00026,50028,09029,77531,56233,45635,46337,591Research cost100,000-------Total costs (B)1,474,7501,445,6101,520,7221,600,3401,684,7351,774,1941,869,0211,969,537Profits before tax (C)(29,750)143,890227,728322,955430,889552,993690,885846,359Tax (30%)-43,16768,31996,887129,267165,898207,265253,908Profits after tax (D)(29,750)100,723159,410226,069301,622387,095483,619592,451Cash Flows after tax(D+Depn*70%)105,875236,348295,035361,694437,247522,720619,244728,07612345678Revenues (A)1,445,0001,531,7001,623,6021,721,0181,824,2791,933,7362,049,7602,172,746Less: CostsDepreciation193,750193,750193,750193,750193,750193,750193,750193,750Staff cost900,000990,0001,089,0001,197,9001,317,6901,449,4591,594,4051,753,845Material cost210,000231,000254,100279,510307,461338,207372,028409,231Marketing cost46,00050,60055,66061,22667,34974,08381,49289,641Other cost25,00027,50030,25033,27536,60340,26344,28948,718Research cost100,000-------Total costs (B)1,474,7501,492,8501,622,7601,765,6611,922,8522,095,7622,285,9642,495,185Profits before tax (C)(29,750)38,850842(44,643)(98,573)(162,026)(236,203)(322,439)Tax (30%)-11,655253(13,393)(29,572)(48,608)(70,861)(96,732)Profits after tax (D)(29,750)27,195589(31,250)(69,001)(113,418)(165,342)(225,707)Cash Flows after tax(D+Depn*70%)105,875162,820136,214104,37566,62422,207(29,717)(90,082)Base case workingsWorst case workingsParticularsYearsParticularsYears3 | P a g e

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting and Finance | Assignment
|15
|2065
|31

Accounting & Finance Assignment
|15
|1926
|34

(PDF) Case Examples of Project Evaluations
|6
|1278
|54

Capital budgeting practices in German
|7
|1116
|19

Assignment on Accounting & Finance
|12
|1593
|35

Business Finance Report on Capital Budgeting Techniques for Booli Electronics
|12
|2307
|436