Depreciation each year
= ( Purchase cost – Salvage Value) / Useful life
= ( $ 2,290,000 – 0) / 3
= $ 763,333.33
The following table shows the calculations :
Calculations | Particulars | Amount $ |
A | Sales | 1651000.00 |
B | Costs | 629000.00 |
C | Depreciation | 763333.33 |
D = A-B-C | Net Income before taxes | 258666.67 |
E = D x 23% | Taxes | 59493.33 |
F = D-E | Net Income | 199173.33 |
G = C+F | Operating Cash Flow | 962506.67 |
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