Timing of cashflows, Cost Accounting

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.
Posted Date: 3/2/2013 12:49:46 AM | Location : United States







Related Discussions:- Timing of cashflows, Assignment Help, Ask Question on Timing of cashflows, Get Answer, Expert's Help, Timing of cashflows Discussions

Write discussion on Timing of cashflows
Your posts are moderated
Related Questions
1. The table below gives data for Southland where there are three consumption goods: bananas, coconuts and grapes. Goods Quantity in base period basket

1. Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at

labour cost related case study with solution


This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and

1) The Svelte Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life". The company sales budget estimates that

H Bhd has a 75% holding in the ordinary shares of S Sdn Bhd and 40% in A Sdn Bhd. Shares in S were acquired  in 2006 when its retained earnings were RM120 million.  The shares in A

Determine Equivalent Units of the Product Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are

conard transfered 10000 from her account to the business

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 th