Timing of cashflows, Cost Accounting

Assignment Help:

The time of cashflows for the project are as follows;

  • Operating Income (rent) is received annually, in advance. For NPV purposes they are assumed to have been received at the beginning of the year.
  • Operating Expenses are averaged over the year and are assumed to be paid in the year they are incurred, unless otherwise stated.  For NPV purposes they are assumed to have been paid at the end of the year.
  • Operating account Interest Income and Expense are received/expended at the beginning of each year (based on balances at the end of the previous year).
  • Receipts for the disposal of assets (including final disposal of the project) are received at the beginning of each year immediately following the last year of their useful life or identification for disposal.
  • Expenditure for the acquisition and/or replacement of assets is made at the beginning of the year in which they are acquired.
  • Loan payments are made at the beginning of each year (ie payments in advance). The final loan payout (if applicable) is made on the first day of the year following the disposal of the project.
  • Tax receipts and payments occur on the first day of the year following the year they are incurred.
  • Capital receipts and payments are made at the beginning of the year they are received/expended.

Related Discussions:- Timing of cashflows

Account analysis method of cost estimation, Account Analysis Method of Cost...

Account Analysis Method of Cost Estimation By Utilizing account analysis, the accountant classifies and examines each ledger account like variable mixed or fixed. Into their v

Davids net state lottery gains, One month before she died on April 14, 2002...

One month before she died on April 14, 2002, Barbara Gent (Amy's aunt) gave Amy a coin collection. Based on careful records that Barbara kept, the collection had a cost basis of $9

Overheadd anarlysis, Following figures are taken from annual budget of ABC ...

Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor

Profit and loss statement, If a company trades in a building towards a new ...

If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement

Depreciate assets, Are non-profit and governments required to depreciate as...

Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p

Mamufactuaring account, for the year ended31st dec 2008manufacturing accoun...

for the year ended31st dec 2008manufacturing accountshowing costof row material,manufacturing expenses and the cost of goods manufactured& tradind account where stock of row mater

How do you record this transaction?, Two classes of stock authorized: $100 ...

Two classes of stock authorized: $100 par preferred and $2 par common how do you record this transaction? May 18 Issues 30,000 additional shares of $2 common stock for $75 p

Reconciliation of profits, Reconciliation of Profits Reconciliation of...

Reconciliation of Profits Reconciliation of profits disclosed by Financial Accounts and Costing Accounts in an interlocking system, While interlocking cost accounting system

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd