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

Ow much overhead will be assigned to each sailboat produced?, ShipShape Com...

ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

Prepare the appropriate entries for december 31, A corporation acquired a t...

A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d

Standard costing, Standard Costing A standard cost is a predetermined ...

Standard Costing A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of pa

Direct cost as a relevant cost, Direct Cost as a Relevant Cost Direct ...

Direct Cost as a Relevant Cost Direct costs may be directly chargeable to a cost center or a product. They may be fixed costs or variable costs whereas it comes to decision-ma

Modified accelerated cost recovery system, Assume new instruments for a fir...

Assume new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Finish the depreciation schedule shown below using the

MATERIALCOSTING, what are the material management questions

what are the material management questions

What is the profit maximizing level of advertising, Smith Corp. has determi...

Smith Corp. has determined that its contribution margin, (P - MC)/P, is 40%. A recent market research study found the following relationship between adverting outlays and sales rev

Adjustment entries, Accounts are prepared according to accounting concepts,...

Accounts are prepared according to accounting concepts, principles and conventions. As final accounts are prepared on accrual basis, this becomes essential to subtract all those ex

Timing of cashflows, The time of cashflows for the project are as follows; ...

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

Compute the second years tax amortization, Smith Corporation purchased an i...

Smith Corporation purchased an intangible asset for $110,000. Compute the second year's tax amortization. The second year would be a full year's amortization. The company estimates

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