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    5 - Depericiation, WC, Scenarios - With Dep Formula

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    Faisal NAUMAN

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    5 - Depericiation, WC, Scenarios - With Dep Formula

    Uploaded by

    Faisal NAUMAN
    10 views8 pages

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    5_Depericiation, WC, Scenarios_with Dep Formula

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    Download as xlsx, pdf, or txt
    10 views8 pages

    5 - Depericiation, WC, Scenarios - With Dep Formula

    Uploaded by

    Faisal NAUMAN

    Copyright:

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

    Cover Summary Inputs Scenarios Schedule

    Revenue Payroll Loan/Debt Dep Equity

    ``
    Data Link Flow
    Cover
    Inputs
    Scenarios
    Schedules
    Model

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    arios Schedules Model

    p Equity Tax

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    CAPEX and Depreciation
    · Opening FA balance is 950 M and the Company is expecting to spend 500 million on capex in F2020, 700 milli
    and 600 million for each year after. Capex is spent evenly over the course of the year.
    · AHA uses the Straight-Line method of depreciation.
    · Existing assets (if any) have a remaining useful life of 35 years while new assets will be depreciated over 47 ye

    Evenly means half depriciation in the year of purchase and full depriciation in the year of sale

    Inputs Portion
    DEPRECIATION
    - Depreciation Methodology Used: Straight Line
    - Years remaining for depreciation of existing assets: 35 years
    - Years used for depreciation of new assets: 47 years

    OTHER ASSUMPTIONS UOM 2019 2020 2021


    CAPEX MM 950 500 700
    Opening

    Depriciation 2019A 2020F 2021F

    Years Remaining on Existing Assets: 35


    Depreciation Years on New Assets: 47

    Depreciation to Existing Assets $950.0 27.1 27.1


    Helping
    Years NEW CAPEX
    2020 500 5.3 10.6
    2021 700 - 7.4
    2022 600 - -
    2023 600 - -
    2024 600 - -

    Total Depreciation 32.5 45.2


    Accumulated Depriciation
    PPE schedule

    Beginning balance MM 950.0 1,417.5


    Capex-New Purchase MM 500.0 700.0
    Acc. Depreciation MM 32.5 45.2
    Ending balance MM $950.0 1417.5 2072.3

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    on on capex in F2020, 700 million in F2021
    Half year depriciation in the year of purchase

    s will be depreciated over 47 years

    he year of sale

    2022 2023 2024


    600 600 600

    2022F 2023F 2024F

    27.1 27.1 27.1 (Cost-Salwage)/UL

    10.6 10.6 10.6 5.3 10.6 10.6 10.6 10.6


    14.9 14.9 14.9 - 7.4 14.9 14.9 14.9
    6.4 12.8 12.8 - - 6.4 12.8 12.8
    - 6.4 12.8 - - - 6.4 12.8
    - - 6.4 - - - - 6.4

    59.1 71.8 84.6

    2,072.3 2,613.3 3,141.4


    600.0 600.0 600.0
    59.1 71.8 84.6
    2613.3 3141.4 3656.8

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    TWO Methods
    • Manual calculation for each year
    • One Cell Formula/Integrated Method (We will go for this method)

    Notes:
    • Depriciation will be calculated for the year of purchase and following years
    • No depriciation in previous years (Before Purchase)
    • Half depriciation in the year of purchase
    • Data is recquired in columner format
    Logics

    • We have to find out the year of purchase for each asset to calculate half year depriciation
    • We have to find out the Current & following years to calcualte depriciation

    Current & Following Years


    Year 47

    Forecasted
    Helping Column 2020F 2021F 2022F 2023F 2024F
    Years CAPEX
    2020 500
    2021 700 0
    2022 600 -
    2023 600
    2024 600

    If the year in columner format is > the year in row formate then Zero Depriciation

    Year of Purchase
    Helping Years 2020F 2021F 2022F 2023F 2024F

    500 700 600 600 600


    Half Full Full Full Full
    No Half Full Full Full

    Year of Purchase Half, Starting Point


    Following Years Full Depriciation

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    depriciation

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    OTHER ASSUMPTIONS UOM 2019 2020 2021

    Working Capital Days


    Accounts Receivable days 45.0 45.0
    Inventories days 65.0 65.0
    Accounts Payable days 60.0 60.0

    Working Capital 2019A 2020F 2021F

    Days per Year Days 366 365

    Income Statement Items


    Sales/Revenue MM Assumption 17500 27500
    Cost of Sales MM Assumption 7000 11000

    Days In
    Accounts Receivable days
    Inventories days
    Accounts Payable days

    Account Balances
    Accounts Receivable MM
    Inventories MM
    Accounts Payable MM

    Net Working Capital MM


    Change in Working Capital MM

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #
    2022 2023 2024

    45.0 45.0 45.0


    65.0 65.0 65.0
    60.0 60.0 60.0 21.0 22.0 23.0 24.0 25.0
    500 700 600 600 600

    2022F 2023F 2024F

    365 365 366

    37500 47500 57500


    15000 19000 23000

    _x000D_ Institute of Public Accountants/Institute of Financial Accountants - General


    #

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